Manhattan rents reached an all-time last month — and they’re showing no signs of cooling any time soon, as supply dwindles but demand remains steady.
Median rents in the borough hit an eye-watering $5,125 per month in May, a shocking 7% increase from the year before, Crain’s New York reported, citing an analysis from real estate company The Corcoran Group.
That increase was part of a trend that’s been creeping steadily upward — median Manhattan rents rose 1% from April to June.
Those costs are being driven by steady demand that continues to outpace supply, the Corcoran report found.
“Much to the frustration of tenants, Manhattan’s median rent reached yet another new all-time high as demand continues to outpace a persistently constrained supply environment,” said Gary Malin, CEO of the Corcoran Group.
“We’re seeing record pricing across multiple unit types, particularly in studios and one-bedrooms, as renters compete for a shrinking pool of available apartments,” he told Crain’s.
The shrinking pool was severe in May — with 21% fewer listings from the month before.
That was the fourth month in a row that’s had a double-digit drop in listings, according to Crain’s.
No-doorman buildings set records in May for both median and average rents, at $4,496 and $5,710 per month, respectively.
Buildings with doormen had a median rent of $5,333, slightly lower than the record set this year.
And it wasn’t just Manhattan that saw record rents — Brooklyn’s median rent in May rent hit $4,347, which was a 6% increase from the same time last year.
The borough’s supply fared better, however, with only a 5% decrease in active listings.
All those high prices seem to be affecting what renters are doing — with new leases across New York in May hitting 4,655, a 2% decline from April and a 6% drop from a year ago.