- Manhattan’s median rent rose 5% YoY to $4.2K in November, the largest annual bump since September 2023.
- Rental demand surged, with new lease signings up 38% in Manhattan, 40% in Brooklyn, and 65% in Northwest Queens.
- ersistently high mortgage rates are steering potential homebuyers toward rentals, keeping pressure on the city’s housing market.
New York City rents surged in November, bucking the typical seasonal slowdown typical of the colder months.
By The Numbers
According to The Real Deal, Manhattan’s median rent rose to $4.2K, 5% more than in November 2023. Brooklyn and Northwest Queens also saw notable gains, with median rents at $3.5K and $3.46K, respectively.
The sharp rise in rental prices coincided with a jump in leasing activity. New lease signings soared YoY as renters moved quickly amid limited buying options.
Mortgage Mayhem
Persistently high mortgage rates remain the primary driver of rising rents. While current rates, which peaked at 6.9% in November, are not historically high, they’re still high enough to deter potential homebuyers.
And with buyers sidelined, rental demand has risen. Jonathan Miller, the report’s author, explained, “Elevated mortgage rates remain a significant factor in pushing rents higher.”
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Rate Revisions
The Federal Reserve is expected to cut rates at its Dec. 18 meeting, which could further lower mortgage rates. Recent declines brought rates down to 6.6% as of early December.
However, the long-term trajectory of mortgage rates may hinge on policies from the incoming Trump administration. While Trump has pledged to lower rates, some of his proposals, including tax cuts and tariffs, could fuel inflation and complicate the Fed’s plans to ease rates further.
High Stakes for 2025
As long as mortgage rates remain elevated, rental demand is likely to persist, keeping rents upwardly pressured.
While buyers await clearer signals from the Fed and the new administration, renters must continue to face a challenging market with limited affordability in sight.
