New York

Record-High Demand: New York City’s Rental Boom Continues

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 RentalsJune 2021
Average Rental Price$3,922
Rental Price Per Sq Ft$64.97
Median Rental Price$3,249
Number of New Leases9,642
Days on Market (From Last List Date)87
Listing Discount (From Last List Price)1.4%
Listing Inventory11,853
Vacancy Rate6.69%

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