December Surge
NYC Lease Signings Defy Traditional End of Year Slowdown
December 2023 witnessed unexpected vibrancy in New York City's rental market, contrary to the typical end-of-year slowdown. New lease signings surged across Manhattan, Brooklyn, and Queens, with the outer boroughs experiencing significant year-over-year increases. Jonathan Miller noted a nearly doubled annual growth in new leases in Brooklyn and a remarkable 58.1% YoY uptick in Queens, driven by heightened demand for new developments.
Despite projections of slipping Manhattan rents due to lower mortgage rates, the median rent in Manhattan remained steady YoY at $4,050, marking a slight 1.3% MoM increase—the first since July. Miller anticipates occasional fluctuations in the rental market but emphasizes that renters should not expect a decline every month.
Manhattan saw a 33% rise in listings compared to December 2022, yet there's still a lot of competition, including bidding wars. Landlords faced challenges in retaining tenants, evident in a vacancy rate increase from 2.93% in November to 3.42% in December, suggesting potential future adjustments in rental prices.
In Brooklyn, where median rent continued its YoY upward trend to $3,469, a 0.7% decline from the previous month was observed. Despite new listings increasing by 8.2% annually for the fourth consecutive month, competition for rentals remains fierce. Meanwhile, Queens rebounded with a significant 24.1% YoY increase in median rent.
Luxury rentals, particularly in Manhattan, witnessed a resurgence in concessions such as free months and landlord-paid broker fees. Market reports underscored the appeal of these incentives, with nearly half of luxury properties in Manhattan becoming no-fee, as landlords employ creative strategies to attract renters.
The unexpected vigor in New York City's rental market defied traditional year-end trends. The energetic landscape, marked by competitive leasing dynamics and strategic concessions in luxury rentals, hints at a nuanced and evolving real estate scenario for both renters and landlords.
