Manhattan Rents Reach Record High in May as Inventory Grows

Manhattan’s median rent jumped nearly 8% year-over-year to $4,571 in May, setting a new all-time high.
Even with the highest inventory since 2021, rents continued to increase.
The FARE Act, which blocks broker fee pass-throughs to tenants, may lead landlords to raise prices.
The East Side saw the biggest increase in rents. Meanwhile, luxury and new development segments showed little or no growth.

Key Takeaways

Rents Climb Ahead Of Summer Peak

Manhattan rents continue their upward trend, reaching a median of $4,571 in May, per The Real Deal. That’s an 8% increase from a year ago, according to the latest Douglas Elliman report by appraiser Jonathan Miller.

Rents have now hit records in three of the past four months. This early surge suggests that summer could bring even higher prices — a break from the usual seasonal pattern.

FARE Act May Add More Pressure

The FARE Act took effect in early June. It prevents landlords from passing broker fees to tenants. Experts believe this change will encourage many landlords to raise asking rents to cover those costs.

“We’re probably going to see a few more broken records by the time the market peaks in August,” Miller said.

Price Gains Vary Across Market Segments

The East Side of Manhattan saw the sharpest increase, with rents rising over 10% since last May. In contrast, the luxury segment remained flat at around $10,500. New developments saw a slight decline, with median rents falling 2% to $5,600.

Inventory Rises, But Demand Holds

Manhattan had more than 11,700 available rentals in May — the highest level since summer 2021. RealPage projects over 34,000 new apartments will arrive in 2025, 85% more than last year.

Many potential buyers are choosing to rent instead, as mortgage rates remain high.

Outer Boroughs Show Mixed Results

Brooklyn: Median rent rose just 1.4% year-over-year to $3,650. However, the price PSF hit a record near $60.
Northwest Queens: Median rent increased by almost 7%, reaching $3,625. The area’s inventory more than doubled compared to May 2024.

Why It Matters

Rising rents in the face of record supply show how strong demand remains in Manhattan. New regulations and high borrowing costs may keep pressure on the rental market through summer.