New York City rental markets showed strong performance in June, driven in part by a flurry of luxury activity, an indication that as Covid-19 infection rates continue to dwindle, the city’s wealthy residents are returning in droves.
While prices were largely flat—Manhattan’s luxury rental market saw median prices decline by 2.9% year over year, according to Douglas Elliman’s June rental report
The Manhattan luxury rental market’s strength has been transformed during the pandemic era into one of the stronger segments.
Heavy leasing volume combined with a sharp decline in luxury inventory suggests potential upward price pressure in the near future.
Areas like the West Village in Manhattan, are particularly hot, with demand so high for some units that landlords are asking prospective renters to submit their best and final offers above the advertised rent price—akin to what would be expected in a competitive market for home buyers. Still, the median rental price in Manhattan is down 18.5% compared to a year ago, while Brooklyn is down 16.2% and Queens 13.1%.
| Manhattan Rentals | June 2021 |
|---|---|
| Average Rental Price | $3,922 |
| Rental Price Per Sq Ft | $64.97 |
| Median Rental Price | $3,249 |
| Number of New Leases | 9,642 |
| Days on Market (From Last List Date) | 87 |
| Listing Discount (From Last List Price) | 1.4% |
| Listing Inventory | 11,853 |
| Vacancy Rate | 6.69% |
