Manhattan Apartment Rents Fizzle In June, Offering Some Relief

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by Tyler Durden
Friday, Jul 14, 2023 - 03:10 PM

In June, the median rent for Manhattan apartments didn't set a new record, marking a shift following a parabolic price rise across the borough over the past year. Whether this is just a blip or the start of a meaningful cooldown in the rental market remains to be seen. 

New data from appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate shows the effective median rents in June were $4,300 -- that is down $95 from an all-time high of $4,395 set in May. Before May, rent prices surged to new highs for three consecutive months. 

Bloomberg said June's cooldown in rents might be "short-lived" because "July and August are traditionally the busiest and most expensive months of the year as students, recent graduates and families looking to move before the new school year starts all crowd the market." 

"We still have the big leasing season ahead," said Jonathan Miller, president of Miller Samuel. He said, "An opportunity for the market to go higher and set another record before the end of the summer."

Miller added: "It seems like we'll see rising rents or stability at a high level" in the next several months. 

Data showed the vacancy rate last month was 2.78%, in line with the 10-year average for June of 2.8%. The number of new leases signed was 5,165, a nominal increase from the same month last year. 

While Manhattan apartment rents cooled, data showed Brooklyn and Northwest Queens rents inched up last month.

This comes after the latest inflation report shows shelter costs peaked.

We noted this in April. 

Easing shelter costs is good news for the Federal Reserve's fight against inflation because it makes up about one-third of the weighting in the CPI.