For the month of October we have good news for tenants, the average rental cost has decreased by approximately 6% since September.

This has boosted the real estate sector a lot, the number of closed deals increased by 63% in the month of October, which is atypical for the season.

Although for many the price is still expensive, the figures compared month to month indicate that the reduction in rental costs is quite large, which means that after the summer those who want to rent a good place in the Big Apple can find some very good deals, at much lower prices than normal, generating great satisfaction for many.

Manhattan Rents

  • October 2022’s overall median Manhattan rent of $4,200 marked a 6% decline from September but remains 27% higher when compared to last year. While rents are still up on an annual basis, October marks the largest month-over-month decline in rents since November 2020.
  • The drop in median rents from September to October was caused by a 9% decline in pricing for non-doorman buildings. In contrast, rents were up 3% for doorman product.

Listings/Vacancy

  • In October 2022, there were 6,287 active listings across Manhattan, up 7% from September and a substantial 29% year-over-year. Available inventory has increased to a 14-month high.
  • The average Manhattan apartment took 92 days to find a tenant in October, 2% longer than in September and an 18% rise year-over-year. With rents still high and inventory on the rise, days-on-market rose to the one of the highest levels in nearly two years.
  • The Manhattan vacancy again rose slightly to 2.26% in October (vs. 2.23% in September). As was the case with inventory, the vacancy rate reached the highest level in 14 months. October also marked the fifth consecutive month where the vacancy rate was above 2%, unprecedented in the decade prior to the pandemic.
  • The vacancy rate increased year-over-year across all Manhattan neighborhoods. Midtown West had the highest vacancy rate in October (at 3.03%) while vacancy was lowest in Gramercy (at 1.62%).

Leasing Activity

  • With 4,904 new leases signed, October 2022 leasing activity rose a notable 63% from September. In addition, 24% more leases were executed when compared to October 2021.  When compared to a pre-pandemic October 2019, market activity is also up.

Brooklyn Rents

  • Brooklyn’s median rent fell to $3,600 in October 2022, down 2% from September but up 26% year-over-year. October marked the second consecutive monthly decrease for median rent.
  • At $4,033, the Brooklyn average rent also fell 2% month-over-month but is still up 20% annually. While both median and average rent are still higher by double digits year-over-year, both are currently on a downward trend.

Listings

  • There were 3,395 active listings available in Brooklyn during October 2022, a 2% increase from September and a 9% rise compared to last year.
  • The average Brooklyn rental spent 77 days on the market, 13% fewer days than in September but 7% more than last October.

Leasing Activity 

  • At 1,391, the number of leases signed in October 2022 jumped a whopping 90% when compared to September and 31% year-over-year. The Brooklyn rental market was much more active in October thanks to easing prices.