New York City sees rising rents amid nationwide decline

Rental prices in New York City have increased by 5.6%, contrasting with a national trend of declining rents, according to a recent report from Realtor.com. While rental rates across the top 50 metropolitan areas in the United States fell by an average of 1.1% since December 2023, New York City's prices have risen.

The rise in rent is attributed to limited new construction in the city, unlike other parts of the country where an increase in housing stock has led to lower prices. Nationwide, the absorption rate—the percentage of newly built rentals leased within three months—has decreased, except in the Northeast where it rose from 58% to 67% year over year.

The national median asking price for rent stands at $1,695, but New York City's median rent for a 0-2 bedroom unit is now $2,967. Manhattan's overall median rent reached $4,487 per month—a 5.4% increase from last year—with smaller units seeing significant demand.

Realtor.com senior economist Joel Berner noted that "there seems to be a trend of smaller units receiving more demand in Manhattan than in the other, more affordable boroughs." He suggested this might indicate renewed interest from young people moving into the city post-pandemic.

Across all five boroughs of New York City, rents are growing at similar rates compared to earlier trends seen in 2024. However, properties are remaining on the market longer than they did last year. Brooklyn listings averaged 48 days on the market (a 60% increase), while Manhattan listings averaged 51 days (a 104% increase). Queens and Staten Island also saw increases in time on market, while only The Bronx experienced a slight decrease.

Manhattan remains the most expensive borough with a median asking rent reaching $4,530 as of December 2024—a rise of both monthly and yearly percentages. In Brooklyn and The Bronx, rents grew modestly but still show substantial increases compared to pre-pandemic levels.

Realtor.com's report highlights available rental options across different boroughs:

- A Flex-2 apartment at Wall St., Financial District costs $3,000.

- A one-bedroom apartment at W 16th St., West Village is priced at $2,900.

- In Prospect Heights and Bedford-Stuyvesant neighborhoods of Brooklyn: one-bedroom apartments are listed for $3,800 and two-bedroom garden apartments for $2,800 respectively.

- Two-bedroom apartments can be found for around $2,800-$2,850 in Forest Hills and Jamaica areas of Queens.

- Three-bedroom apartments range from $2,800-$2,900 in Pelham Garden and South Bronx.

- Staten Island offers three-bedroom units starting at approximately $2,900 with additional amenities like proximity to Yankee Stadium or waterfront views.