Key Takeaways: 

• The median asking rent in August rose just $20 from a year ago, as slowing demand and rising inventory cooled competition among renters in the city.
• Peak NYC rental season has moved up to April in recent years, as renters have begun their searches earlier to get a head start on the summertime competition.
• While competition is cooling in much of the city, renter demand continues to outpace inventory in Queens, resulting in a 9% year-over-year increase in asking rents.

The median asking rent in NYC was $3,800 in August, just $20 higher than a year ago and $30 lower than July. As the city’s labor market slows and rental inventory rises, competition for rentals is cooling in New York City.

Overall rental inventory rose 3.4% year-over-year to 39,730 units in August. Thanks to rising inventory and cooling demand, concessions have become more common with 14.5% of rentals offering at least one month of free rent in August, compared to 12.6% last year. The increase in rentals on the market, coupled with concessions, suggests competition among renters will continue to slow this year and next relative to recent years. However, current inventory levels remain 2.5% below what they were in 2019.

As the pace of hiring slows down, the unemployment rate in the broader NYC area has been gradually rising, according to U.S. Bureau of Labor Statistics data. The slower pace of hiring, especially in high-income industries such as finance and professional services, will continue to soften rental demand.  

In addition, recent declines in mortgage rates could incentivize sidelined buyers currently renting in NYC to reconsider buying. While elevated asking prices would limit the impact of falling mortgage rates on affordability, rental demand will continue to slow as more sidelined buyers rejoin the sales market.

Manhattan Rentals Under $3,500 on StreetEasy Article continues below

Kips Bay

235 East 24th Street

$2,995 No Fee

1 |

1

Murray Hill

35 East 38th Street

$3,100 No Fee

Studio |

1

Yorkville

432 East 88th Street

$2,595 No Fee

Studio |

1

Fort George

96 Arden Street

$2,897 No Fee

3 |

1

Kips Bay

139 East 27th Street

$2,854 No Fee

Studio |

1

Chelsea

315 West 21st Street

$3,395 No Fee

Studio |

1

Yorkville

448 East 84th Street

$3,300 No Fee

1 |

1

Yorkville

444 East 81st Street

$2,750 No Fee

Studio |

1

Greenwich Village

178 Thompson Street

$3,295 No Fee

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1

Carnegie Hill

163 East 92nd Street

$3,350 No Fee

2 |

1

East Village

64 Saint Marks Place

$2,725 No Fee

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1

Lincoln Square

235 West 63rd Street

$1,873 No Fee

Studio |

1

Renters Aim for a Head Start to Get Ahead of the Competition

Since 2022, fierce competition has led to an earlier-than-usual peak for the city’s rental market. This year and last, the most competitive month for renters was April. Previously, July had been the time of year when competition for rentals peaked in NYC, as leases tend to lapse in summer.

In 2022, New Yorkers experienced a hyper-competitive rental market characterized by bidding wars and sharp increases in asking rents. With demand outpacing inventory, the rental market peaked in June. Since then, renters have been dialing up their home search earlier in the year than usual — likely to get ahead of the competition — while the number of listings on the market continues to peak in summer.

Between January and April this year, an average NYC renter contacted 30% more listings than during the three years before the pandemic (2017-2019). Meanwhile, there were 24% fewer rental listings across the city this year compared to pre-pandemic. As renter demand ramped up earlier than usual, the city’s rental market saw competition peak earlier in the year.

Brooklyn Rentals Under $3,000 on StreetEasy Article continues below

Weeksville

22 Ford Street

$2,975 No Fee

2 |

1

Flatbush

1538 New York Avenue

$2,800 No Fee

2 |

1

Flatbush

45 Lenox Road

$2,917 No Fee

1 |

1

Flatbush

45 Lenox Road

$2,875 No Fee

1 |

1

Flatbush

1270 New York Avenue

$2,899 No Fee

2 |

1

Cobble Hill

513 Hicks Street

$2,800 No Fee

1 |

1

East Flatbush

1626 Brooklyn Avenue

$2,550 No Fee

2 |

1

East Flatbush

1626 Brooklyn Avenue

$2,750 No Fee

2 |

1

Bay Ridge

254 73rd Street

$1,749 No Fee

1 |

1

Flatbush

454 East 25th Street

$2,499 No Fee

1 |

1

Williamsburg

11 Humboldt Street

$2,995 No Fee

2 |

1

Homecrest

2039 Homecrest Avenue

$1,800 No Fee

1 |

1

Inventory Rose in Brooklyn and Queens Despite Increases in Median Asking Rents

The median asking rent in Manhattan was $4,395 in August, up 2.2% from a year ago, led by increases in Midtown and Upper Manhattan. However, median asking rents on the Upper East Side and Upper West Side fell 0.5% to $3,976 and 1.8% to $4,417, respectively, from August of last year. With fewer listings entering the market, the borough’s rental inventory dropped 6% year-over-year to 19,236 units. Declining inventory helped offset softer rental demand in Manhattan, with 13.1% of rentals in the borough offering concessions, mostly unchanged from 13.2% last year.

The median asking rent in Queens jumped 9.1% year-over-year to $3,163 in August, slightly below $3,178 in July — the highest since 2010 when StreetEasy began tracking this data. Increases in asking rents were widespread across the borough. Astoria and Long Island City, which offer new developments and a convenient commute to Manhattan, both saw a 3.4% year-over-year rise to $4,395 and $2,999 in August, respectively. Neighborhoods farther from Manhattan also saw strong increases in asking rents, with Flushing, Jamaica, and Woodside leading the borough. Amid growing inventory, 14.7% of rentals in Queens offered concessions in August, up from 11.1% a year ago.

Queens Rentals Under $2,500 on StreetEasy Article continues below

Astoria

25-06 30 Drive

$2,400 No Fee

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1

Flushing

142-27 Barclay Avenue

$1,895 No Fee

Studio |

1

Astoria

25-90 36th Street

$2,095 No Fee

1 |

1

Astoria

32-38 34th Street

$2,300 No Fee

1 |

1

Ditmars-Steinway

22-06 38th Street

$2,275 No Fee

1 |

1

Briarwood

143-16 84 Drive

$2,250 No Fee

1 |

1

Elmhurst

42-22 Ketcham Street

$2,150 No Fee

Studio |

1

Ditmars-Steinway

21-47 27th Street

$2,000 No Fee

1 |

1

Ditmars-Steinway

41-08 Ditmars Boulevard

$2,299 No Fee

1 |

1

Jamaica Estates

183-11 Hillside Avenue

$1,625 No Fee

Studio |

1

Long Island City

38-12 32nd Street

$2,450 No Fee

1 |

1

Jackson Heights

32-25 93rd Street

$1,900 No Fee

1 |

1

In Brooklyn, the median asking rent rose 2.9% year-over-year to $3,600, the highest since 2010. Asking rents are rising quickly in northwest Brooklyn, led by Brooklyn Heights, Downtown Brooklyn, and Boerum Hill. With a 14.8% year-over-year jump in median asking rent, Brooklyn Heights saw the sharpest increase in the borough. Luxury rentals in new developments near the waterfront are likely behind the neighborhood’s higher price point of $4,650. Rental inventory also soared 17.3% from a year ago to 14,620 units across Brooklyn, contributing to cooling competition among renters in the borough. In August, 15% of Brooklyn rental listings offered concessions, higher than 11.7% the year before.

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