NYC Rents Highest Since July, Driven by Mortgage Rate Surge

According to Bloomberg, in October, Manhattan rents rose to heights typically reserved for the busier summer months—up to a median of $4,295, or 2.4% higher than last year.

Meanwhile, new lease signings surged by 24% YoY, driven by prospective homebuyers priced out of the market due to too-high borrowing costs.

“Rents tend to follow mortgage rates,” explained Jonathan Miller, president of Miller Samuel Inc. “The higher the mortgage rate, the higher [the] rent.”

Borough by Borough

• Manhattan: Median rents clocked in at $4,295, the highest level in over 3 months.
• Brooklyn: Median rents climbed to $3,600, reflecting robust demand and a competitive market.
• Queens: Median rents hit $3,350, with Long Island City and Astoria leading the surge.

Policy Impacts

The New York City Council also recently passed legislation requiring landlords to cover broker fees, a cost often shifted to tenants.

While this measure may reduce upfront costs for renters, critics argue landlords could raise rents to offset their expenses.

Looking Ahead

Renters should brace for sustained high prices, as mortgage rates show no signs of significant decline. “If anything, rents will stay where they are, or rise, moving forward,” Miller noted.

Despite potential relief from the broker fee legislation, NYC’s rental market is likely to remain tight, particularly as economic policy continues to influence borrowing costs.