Category: Rent Report

Summer Rent Increases Are Back

In June 2023, rent increases on lease renewals for market-rate apartments in NYC ramped up to 12.2% compared to 21.5% a year before and just 4.9% in May 2023. Rent increases are back in double-digit territory as summer demand pushed prices higher. While sub-5% rent increases are still prevalent, just 41% of lease renewals were in this range compared to 78% last month. Notably, apartments priced $5-7k per month experienced the lowest increases at 4.8%, while apartments priced less than $2500 experienced 16% increases on average.

New York City Lease Renewals

	June 2023	May 2023	April 2023	March 2023	February 2023	January 2023	June 2022
Average Lease Renewal Change (%)	12.1%	4.9%	6.8%	10.8%	10.2%	8.1%	21.5%

June 2023 Renewal Breakdown By Increase

41% of lease renewals in June were between 0-4%.

June 2022-June 2023 Lease Renewal Change (Manhattan, Brooklyn, Queens)

Rent increases on renewals continue to drop below previous year levels but are still in double-digit territory.

Rent Increases on Lease Renewals Continue to Cool

In May 2023, rent increases on lease renewals for market-rate apartments in NYC cooled off to 4.9% compared to 17% a year before and 6.8% in April 2023. After a year of mostly double-digit increases, renters got some reprieve as landlords handed out sub-5% rent increases in the majority of cases. Notably, rent increases on lease renewals for apartments priced less than $2500 received the largest increases – around 8%. But why are rent prices on renewals cooling as the summer rental season heats up? Perhaps it’s indicative that rents have finally reached their top and landlord’s feel there isn’t the same upside to put units back on the market.

New York City Lease Renewals

	May 2023	Apr 2023	Mar 2023	Feb 2023	Jan 2023	May 2022
Average Lease Renewal Change (%)	4.9%	6.8%	10.8%	10.2%	8.1%	17.5%

May Renewal Breakdown By Increase

78% of lease renewals in May were between 0-4%.

May 2022-May 2023 Renewal Change (Manhattan, Brooklyn, Queens)

Rent increases on renewals continue to drop below previous year levels. May saw another reprieve in rent increases from the first few months of 2023.

Rents continue to tick up heading into summer months.

In March 2023, rent increases on lease renewals for market-rate apartments in NYC ticked up to 10.8% compared to 20% a year before and 10.2% in February 2023. Increases on lease renewals have stabilized compared to 2022, where the market saw steep corrections in rent and 20%+ increases were standard. However, the majority of lease renewals are still in the sub-5% range. Meaning, landlords are increasing rents less than 5% when their tenants are up for renewal. Our recommendation to both renters and landlords is to compare the renewals they are receiving/giving to the numbers below so they can assess if the pricing is aligned with the rest of the market.

New York City Lease Renewals

	Mar 2023	Feb 2023	Jan 2023	Dec 2022	Nov 2022	Oct 2022	Mar 2022
Average Lease Renewal Change (%)	10.8%	10.2%	8.1%	3.2%	5.2%	5.9%	20.0%

March 2023 Renewal Breakdown By Increase

68% of lease renewals in March were between 0-4%.

March 2022 – March 2023 Renewal Change (Manhattan, Brooklyn, Queens)

While rent increases on renewals continue to drop below previous year levels, prices are now starting to tick upward.

The rental dip of late 2022 seems to be over.

In February 2023, rent increases on lease renewals for market-rate apartments in NYC was 10.2% compared to 26.4% a year before and 8.1% in January 2023. Increases on lease renewals have stabilized compared to the levels seen in 2022, where the market saw steep corrections in rent. However, the majority of lease renewals are still in the sub-5% range. Meaning, landlords are increasing rents less than 5% when their tenants are up for renewal and steep double digit increases are becoming less common.

New York City Lease Renewals

	Feb 2023	Jan 2023	Dec 2022	Nov 2022	Oct 2022	Feb 2022
Average Lease Renewal Change (%)	10.2%	8.1%	3.2%	5.2%	5.9%	26.4%

February 2023 Lease Renewal Breakdown By Increase

66% of lease renewals in January were between 0-4%.

Feb 2022 – Feb 2023 Lease Renewal Change (Manhattan, Brooklyn, Queens)

While rent increases on renewals continue to drop below previous year levels, prices are now starting to tick upward.

Is the seasonal dip in rents over?

In January 2023, rent increases on lease renewals for market-rate apartments in NYC were 8.1% compared to 17% a year before and 3.2% in December 2022. Rental activity seemed to cool in the latter months of 2022, but January saw a bounce back. 71% of New York lease renewals were still sub 5%. There was notably a big bounce in Manhattan rent increases, 11.1% vs. 2.4% last month. The neighborhood with the highest reported rent increases was the West Village at 36%.

New York City Lease Renewals

	Jan 2023	Dec 2022	Nov 2022	Oct 2022	Sep 2022	Jan 2022
Average Lease Renewal Change (%)	8.1%	3.2%	5.2%	5.9%	5.2%	17%

January 2023 Renewal Breakdown By Increase

71% of New York lease renewals in January 2023 were between 0-4%.

Jan 2022-Jan 2023 Renewal Change (Manhattan, Brooklyn, Queens)

While rent increases on New York lease renewals in January 2023 continue to drop below previous year levels, prices are now starting to tick upward.

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Rent increases on lease renewals fall for the 3rd straight month

In December 2022, rent increased on lease renewals for market-rate apartments in NYC were 3.2% compared to 18.2% a year before. Rental activity continues to cool heading in the winter months, where 84% of renewals reported an increase of less than 5%. Notably, the average December renewal in Manhattan was a 2.4% increase compared to 6.7% in Brooklyn. Increases in rent renewals have been hovering around 5% since August, indicating that the post-pandemic correction in prices seems to be behind us.

New York City Lease Renewals

	Dec 2022	Nov 2022	Oct 2022	Sep 2022	Dec 2021
Average Lease Renewal Change (%)	3.2%	5.2%	5.9%	5.2%	18.2%

Lease Renewals December 2022 Breakdown By Increase

84% of lease renewals in December were between 0-4%.

Jan-Dec 2022 Lease Renewals Change (Manhattan, Brooklyn, Queens)

Rent increases on renewals continue to drop below 2021 levels.

Questions or comments? Reach out to us at info@openigloo.com

Rent increases on lease renewals continue to stabilize

In November 2022, rent increases on lease renewals for market-rate apartments in NYC were 5.2% compared to 11.6% a year before. As rental activity cools heading in the winter months, 82% of renewals reported an increase of less than 5%. The average November renewal in Brooklyn and Manhattan was a 6% increase, compared to 0% in Queens. Increases in rent renewals have been hovering around 5% since August, indicating that the post-pandemic boom in prices seems to be behind us. 

New York City Lease Renewals

	Nov 2022	Oct 2022	Sep 2022	Aug 2022	Nov 2021
Average Lease Renewal Change (%)	5.2%	5.9%	5.2%	12.5%	11.6%

November Renewal Breakdown By Increase

82% of lease renewals in November were between 0-4%, while just 0% of renewals were above 51%.

Jan-Nov 2022 Renewal Change (Manhattan, Brooklyn, Queens)

Rent increases on renewals continue to drop below 2021 levels. 

Questions or comments? Reach out to us at info@openigloo.com

Rent increases on lease renewals continue to stabilize, with the exception of Brooklyn

In October 2022, rent increases on lease renewals for market-rate apartments in NYC were 5.9% compared to 8% a year before. After a busy summer season, rents have started to cool, with 74% of renewals reporting an increase of less than 5%. Notably, Brooklyn’s increases in renewals continue to outpace other boroughs – the average October renewal in Brooklyn saw a 10% increase compared to just 4% in Manhattan. This could be an early sign of heightened demand in the borough. 

New York City Lease Renewals

	Oct 2022	Sept 2022	Aug 2022	Oct 2021
Average Lease Renewal Change (%)	5.9%	5.2%	12.5%	8%

October Renewal Breakdown By Increase

74% of lease renewals in October were between 0-4%, while just 2% of renewals were above 51%.

Jan-Oct 2022 Renewal Change (Manhattan, Brooklyn, Queens)

Rent increases on renewals continue to drop below 2021 levels.

Questions or comments? Reach out to us at info@openigloo.com