NYC Rent Growth Slows to Below 3% for the First Time Since Pandemic

Read the full report from StreetEasy Economist Kenny Lee.

Key Takeaways

• November marks the slowest year-over-year rent growth (2.9%) since August 2021, when rents began rapidly increasing after the pandemic lull.
• The citywide median asking rent fell 2.8% to $3,500 in November from $3,600 in October.
• While rents remain up year-over-year, rental concessions are at a two-year high due to rising inventory softening competition among renters.

The median asking rent in New York City fell 2.8% to $3,500 in November from $3,600 in October. The current median rent is up just 2.9% from November 2022 — the slowest year-over-year rent growth since August 2021.

This slower rent growth reflects rising inventory across the city. Read more.

Manhattan Leads City in Inventory Growth, Suggesting Its Asking Rents Will Decline in 2024

Compared to last year, Manhattan's median asking rent is up just 1.2% — a notable slowdown from the 17.3% year-over-year growth seen in November 2022.?

As landlords compete on prices to attract tenants, Manhattan asking rents will decline next year compared to 2023, and renters will find more apartments offering concessions. Read more.

Competition Is Cooling in Brooklyn, But Rent Growth Remains Steady

Persistently low rental inventory in Brooklyn is fueling strong increases in asking rents. The borough’s current median rent is 4.5% higher than a year ago.

That said, renters can expect more relief in Brooklyn in 2024, as elevated rents and high mortgage rates continue to draw more units onto the market. Read more.

Rent Growth Isn’t Slowing in Queens

Queens stood out as the only borough where rent growth isn’t slowing. While rental inventory is rising quickly in select neighborhoods known for new rental buildings, such as Long Island City and Flushing, overall inventory across the borough is limited relative to strong demand. Read more.

Despite Slowing Rent Growth, NYC Rental Demand Will Continue to Outpace Supply

As inventory rises further, renters can expect a less challenging market in 2024.

However, NYC renters are still faced with limited options. From January to November, 223,936 rentals were on the market citywide, a 14.8% drop compared to the same period in 2019. With the city’s resilient economy supporting demand, the rental market will remain competitive. Read more.

Further reading:

2024 NYC Housing Market Predictions

Homes Entering Contract Jump 24% as NYC Buyers Adjust to New Normal

What Would 8% Mortgage Rates Mean for the NYC Sales Market?

Rising Inventory May Bring Relief for NYC Renters

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