Manhattan apartment rental prices reached an all-time high in February, driven by fierce competition, with more than a quarter of all rental agreements involving bidding wars.
According to appraiser Miller Samuel Inc. and brokerage Douglas Elliman, the median rent for new leases in February was $4,500. This marks a 6.4% increase compared to the same month last year, surpassing the previous record by $100, which was set in the summer of 2023.
This sharp rise in rent is particularly striking during the winter months, when the market typically slows down. However, renters have not experienced much relief in the past three years. February marked the 11th straight month of annual increases in new lease signings, and the vacancy rate in Manhattan continued to decline for the fourth consecutive time.
Bidding wars have become more frequent in this highly competitive market, with real estate agents advising prospective tenants to offer higher rents than the listed prices. Nearly 27% of all new leases signed in February were the result of bidding wars, setting a new record.
“It’s one of the most challenging times to be a renter,” said Jonathan Miller, president of Miller Samuel. “It’s really an irrational market because such a large swath of it is driven by irrational bidding.”
Miller doesn’t foresee any immediate changes in the market. He believes one factor contributing to the crowded rental market is that some people who planned to buy homes following November’s presidential election, hoping for greater economic stability, are now opting to stay in the rental market for the time being.
“I would argue that the volatility we’re seeing in the economy with the tariffs and the uncertainty that’s piling up is keeping consumers in rentals,” he said.
While price hikes were not as extreme in Brooklyn and northwest Queens, these areas are still feeling similar pressures to those in Manhattan.
In Brooklyn, the median rent reached $3,600, up 2.9% from the previous year and $350 less than the record set in July 2023. However, bidding wars were even more prevalent in Brooklyn than in Manhattan, occurring in 35% of transactions. Additionally, the average price per square foot in Brooklyn reached a historic high of $59.15, marking a 7% increase from the previous year.
In Queens, specifically in areas like Astoria and Long Island City, the median rent rose by 7% from the previous year, marking the fourth consecutive annual increase in the past five months, bringing the median rent to $3,466.
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