Introducing CRE MBA—self-paced online courses taught by industry experts for CRE professionals.

NYC Rents Highest Since July, Driven by Mortgage Rate Surge

Manhattan apartment rents climbed to $4,295 in October, the highest level in 3 months, as rising mortgage rates kept renters renting.
NYC Rents Highest Since July, Driven by Mortgage Rate Surge
  • Manhattan rents rose to $4,295, a 2.4% YoY increase, marking the borough’s first annual rent gain since April.
  • Brooklyn rents grew by 3.2% to $3,600, while northwest Queens saw a 4.8% jump to $3,350.
  • Higher mortgage rates above 7% are discouraging home purchases, fueling rental demand.
Key Takeaways

According to Bloomberg, in October, Manhattan rents rose to heights typically reserved for the busier summer months—up to a median of $4,295, or 2.4% higher than last year.

Meanwhile, new lease signings surged by 24% YoY, driven by prospective homebuyers priced out of the market due to too-high borrowing costs.

“Rents tend to follow mortgage rates,” explained Jonathan Miller, president of Miller Samuel Inc. “The higher the mortgage rate, the higher [the] rent.”

Borough by Borough

  • Manhattan: Median rents clocked in at $4,295, the highest level in over 3 months.
  • Brooklyn: Median rents climbed to $3,600, reflecting robust demand and a competitive market.
  • Queens: Median rents hit $3,350, with Long Island City and Astoria leading the surge.

Policy Impacts

The New York City Council also recently passed legislation requiring landlords to cover broker fees, a cost often shifted to tenants.

While this measure may reduce upfront costs for renters, critics argue landlords could raise rents to offset their expenses.

Looking Ahead

Renters should brace for sustained high prices, as mortgage rates show no signs of significant decline. “If anything, rents will stay where they are, or rise, moving forward,” Miller noted.

Despite potential relief from the broker fee legislation, NYC’s rental market is likely to remain tight, particularly as economic policy continues to influence borrowing costs.

RECENT NEWSLETTERS
View All
Industrial Pipeline Slows as New Construction Drops Nationwide
December 11, 2024
READ MORE
15% of Maturing CRE Loans Too Hard to Refinance
December 10, 2024
READ MORE
Assessing Trump’s Policy Impact on CRE Construction
December 9, 2024
READ MORE
Black Friday Signals Return of In-Person Shopping
December 6, 2024
READ MORE

podcast

No CAP by CRE Daily

No Cap by CRE Daily is a weekly podcast offering an unfiltered look into commercial real estate’s biggest trends and influential figures.

Join 65k+
  • operators
  • developers
  • brokers
  • owners
  • landlords
  • investors
  • lenders

who start their day with CRE Daily.

The latest news and trends in commercial real estate delivered to your inbox. Get smarter about what matters in just 5-minutes or less.