Manhattan rents can’t stop breaking records.
The average rent across the borough reached $5,000 for the first time in June, according to a Douglas Elliman report released Thursday.
The average monthly rent, at $5,058, soared 29% year over year and was nearly 20% higher than June 2019, before the pandemic, according to Jonathan Miller, chief executive of real estate appraisal firm Miller Samuel and author of the report.
The median rent continued to set records, too. After hitting the $4,000 mark for the first time in May, the median price of a new lease was $4,050 per month in June, a 1.3% monthly increase and a massive 25% jump compared to June 2021, according to the report.
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Renters looking for the largest apartments in Manhattan, meanwhile, will have to cough up nearly five-digits a month, with three-plus bedrooms averaging $9,469. But even for a studio apartment, the average rent stood at $3,145 per month, or $37,740 per year.
Manhattan June Rental Market
| Price Point | All | $8,248+ (top 10%) | $10,000+ (top 6%) | $15,000+ (top 3%) | |
|---|---|---|---|---|---|
| Average Rent | $5,058 | $13,537 | $16,539 | $22,886 | |
| Y-oY Change | 29% | 39% | 7% | 9.50% | |
| Median Rent | $4,050 | $10,995 | $13,638 | $19,948 | |
| Y-o-Y Change | 25.00% | 42% | 1% | 10.80% | |
| # of Leases | 5,143 | 515 | 312 | 132 | |
| Y-o-Y Change | -47.00% | -47% | 239% | 277% |
Source: Miller Samuel
The number of homes available for rent, though, were not nearly enough to meet the increasing demand. June’s rental inventory across Manhattan shrank 45.7% year over year to 6,433 units. Due to the supply shortage, the number of new leases signed nearly halved from last year’s level, declining 46.7% to 5,143, according to the report.
The luxury rental segment—defined as the priciest 10% of leases signed—outperformed the general market. The average price for these luxury rentals was $13,537, up 38.6% from a year ago. The median rent rose 42% year over year to $10,995.
There were 32 leases signed in June that had a monthly rent above $15,000, an increase of 277% from a year ago. The most expensive rental unit was a 14-room apartment at 502 Park Avenue with a monthly rent of $75,000, according to Mr. Miller.
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Manhattan’s high-end market has been noticeably outperforming post-lockdown, Mr. Miller said, as “the rest of the markets saw more economic damage.”
Luxury rentals in Brooklyn and parts of Queens also posted double-digit price gains in June.
A typical luxury rental unit in Brooklyn was leased for $7,150 per month in June, 20% higher than a year ago. In northwest Queens, the only part of the borough tracked by the report, the median luxury rent climbed 15% to $6,200 monthly, according to Douglas Elliman.