As it’s already known, the month of August historically represents for the real estate market “the hard work month” so it’s normal that all activities related to real estate see an increase. Of course, New York isn’t an exception. Rents and property sales in the city are seeing huge numbers, prices have been rising and tenants are beginning to forecast what would be a better move-in date at the end of their contracts before the school or work commitments affect their budgets.
The end of rents, as expected, causes the number of available properties to increase. But what we can also notice during the month of August is that the great increase in this real estate offer is not only due to the terms of finalized contracts but is also attributed to high rental costs. The constant rise of rental costs is benefiting homeowners at the cost of hurting tenants financially. This is causing them to move to other places and leave vacancies for longer periods of time, now even more when the peak season for New York is ending.
- August 2022’s median Manhattan rent of $4,360 increased 3% from July and 38% vs. last year. After plateauing from June to July, Manhattan rents are back on the rise.
- For units in doorman buildings, median rents increased 31% annually to reach $4,900 per month. For non-doorman product, the median rent hit $3,500 — a 43% rise.
- Average rent for all unit types continued to soar. Rising 35%, pricing for studios increased the most, reaching $3,341. Rents for one-bedroom apartments climbed 32%, to $4,500. Meanwhile, rents for two- and three-bedroom homes rose 27% and 34% respectively, hitting $6,390 and $9,405.
- In August 2022, there were 5,709 active listings across Manhattan, up 7% from July but down 26% year-over-year.
- The Manhattan vacancy again rose slightly to 2.20% in August (vs. 2.09% in July). This marks the third consecutive month where the vacancy rate ticked up, which is unusual for the summer season. We attribute these increases to tenant pushback against record-high rents.
- Midtown East had the highest vacancy rate in August (at 2.99%), while vacancy was lowest in Gramercy (at 0.89%).
- With 5,385 new leases signed, August 2022 leasing activity increased 18% from July. However, 20% fewer leases were signed when compared to August 2021. The number of signed leases increased to the highest figure since last August and was just 9% lower than August 2019.
- Brooklyn’s median rent rose to $3,700 in August 2022, up 2% from July and 37% year-over-year, and reached its highest figure on record. The median rent figure for August 2021 was $1,000 lower, at $2,700.
- At $4,204, the Brooklyn average rent remained stable month-over-month and rose 34% annually. Two-bedroom units saw the largest annual rent growth, as pricing climbed 43% for this property type vs. last August.
- There were 3,349 active listings available in Brooklyn during August 2022, an 11% rise from July but an 18% decline when compared to last August.
- The average Brooklyn rental spent 70 days on the market, up 19% since July and 11% year-over-year. Record high prices caused days on market by rise double-digits versus both last month and last year.
- Hitting 1,448, the number of leases signed in August 2022 increased 17% when compared to July. It marks the most activity since August 2021, when 1,780 leases were executed.