- In June, 24% of Manhattan leases were signed after bidding wars, a new record.
- Apartments were listed for an average of just 24 days before being rented, an all-time low.
- Despite intense competition, median rents held steady at $4.3K, slightly above May’s figure.
- June saw the third-largest inventory on record, helping to keep rent prices stable.
Manhattan’s apartment market reached unprecedented levels of competition in June, with renters facing record-high bidding wars and apartments being leased at an unprecedented pace, as reported on Bloomberg.
Heating Up
According to data from Douglas Elliman Real Estate and Miller Samuel Inc., 24% of all Manhattan leases were signed following bidding wars, highlighting the intense pressure on apartment hunters.
In fact, Jonathan Miller, president of Miller Samuel, claims that many listing agents deliberately underpriced apartments to spur bidding wars.
Apartments stayed on the market for an average of just 24 days in June, the shortest listing duration ever recorded. Eager to secure housing, renters often bid above asking prices, resulting in an average premium of 1.4%.
By The Numbers
Despite fierce competition, median rents in Manhattan remained relatively stable at $4.3K in June, unchanged from the previous year and slightly higher than in May. This stability was partly due to a high supply of available units, the third-largest on record for June, which helped temper rising rents.
Current market dynamics are characterized by significant churn, with renters opting to move rather than accept rent hikes from landlords. This has kept a steady supply of apartments in the market, preventing more rent hikes.
As the peak demand months of July and August approach, Miller anticipates rents may reach new record highs. The current record for Manhattan rents is $4.4K, set in July and August 2023.
Similar trends were observed in Brooklyn and Queens, where median rents ($3,695 in BK and $3,250 in Queens) were also just below record highs. Both boroughs also saw near-record inventory levels for June, with a high number of new leases signed.
Why It Matters
Manhattan’s rental market is enjoying unprecedented competitiveness, driven by rapid lease signings, record-high bidding wars, and high tenant churn. While rents have stabilized for now, the approaching peak summer months may see further price hikes.
