Manhattan Rental Market ‘Topping Out’ as Prices Hover at Records
Apartment demand is showing signs of easing with costs plateauing after months of increases.
Apartment buildings in New York.
Photographer: Spencer Platt/Getty Images
Manhattan’s rental market is showing signs of hitting a limit as prices in August plateaued during what’s typically the most expensive time of the year for new tenants.
The median rent for new leases signed last month was $4,400, unchanged from the record set in July, according to appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate. The steadiness suggests that consumers have reached a breaking point after rents climbed 7.3% from a year ago and 35% from August 2021.
August is often the peak of the leasing season, busy with renters moving before the school year starts. But it ended up being a slower month compared with May and June, according to Jonathan Miller, president of Miller Samuel. The number of new leases in August dropped 14% from a year earlier to 5,025.
“We’re still at or very near all-time highs, but we’re continuing to see new leasing activity fall, and that’s an indicator that the market is topping out,” Miller said.