Real Estate

Manhattan Rents Hit New Record in May

12 June 2025

As temperatures rise in New York, so too has the rental market.

Median Manhattan rent reached a new record high in May, at $4,571 per month, rising nearly 8% year over year, according to the monthly rental report by appraiser Jonathan Miller for Douglas Elliman.

Median rents have been generally on the rise since November, but have been particularly elevated in the last few months, reaching all-time records three out of the past four months. That’s out of the ordinary — rents usually peak during the summer — and suggests even higher prices are soon to come.

And one big change may make rents skyrocket even more: The FARE Act, which prevents apartment owners from passing on broker fees to tenants, went into effect Wednesday and is likely to spur landlords to hike further.

“We’re probably going to see a few more broken records by the time the market peaks in August,” Miller said.

However, not every part of the market has grown equally. The east side of the island saw the biggest jump, increasing more than 10% from last May. But rents in the luxury market, measured as the top decile of listings by asking rent, remained nearly unchanged from a year earlier, stuck at about $10,500. Median rents for new developments in Manhattan fell to $5,600, about a 2% drop year over year.

Apartments were in high supply in May, with Manhattan inventory reaching more than 11,700 — its highest level since the summer of 2021. The city is likely to deliver more than 34,000 apartments in 2025, according to estimates from RealPage, an 85% increase over the units added last year. As mortgage rates remain elevated, some potential buyers may be staying in the rental market, Miller said.

Brooklyn has seen slower rent growth. The median rent in the borough, at $3,650, was only $50, or 1.4%, more than it was in May of 2024. However, the median price per square foot was the highest on record at a little under $60. Inventory has jumped up quickly in the borough, with this May having 43% more listings than the previous May.

In Northwest Queens, which includes Astoria and Long Island City, rents rose modestly. A nearly 7% increase year over year bumped the median rent up to $3,625. Inventory in the area nearly doubled, rising more than 80% from May 2024.