Rent in Manhattan has gone up for the 14th straight month, in spite of the borough’s expanding vacancy rate.
According to data from Douglas Elliman, median rental prices in the borough rose to $3.361 in April.
The figure, which represents a 3.5 percent increase compared to the same month a year ago, was at its peak in the rental market’s entry and mid-tier segments.
With Manhattan rental rates trending upward, Douglas Elliman expects more of the same over the coming months, laying out a scenario where prices will continue to climb.
“Upward price pressure continues to be driven by tight credit conditions and an improving New York economy. If interest rates edge slightly higher over the coming year, there may be additional pressure on rental prices,” the company’s report read.
The average rent price in Manhattan also increased by 1.1 percent compared to the same month last year to $4,054.
This marks the first time that the average rent price in the borough was above $4,000 for three consecutive months.
The 1.78 percent vacancy rate in the borough, which is 0.33 percent higher than the vacancy rate from the year before, was offset by a drop in landlord concessions, days in the market and listing discounts.
Meanwhile, rent in Brooklyn has reached a record high, bringing it closer to prices in Manhattan.
The borough’s median rent, which recovered from losses during the past two months, rose 5.6 percent from the year before to $2,961.
The figures, which represent a record for the borough since Douglas Elliman started releasing rental reports in 2008, exhibit how rent in Brooklyn is catching up with Manhattan. Currently, Brooklyn’s median rent is only $400 less than Manhattan’s $3,361.
The rent increase in Brooklyn is due to rising rates for studio, one-bedroom and two-bedroom apartments.
The median rental price for studios rose 4.3 percent from the year before to $2,294. Rates for one bedroom apartments rose 5.8 percent to $2,809 compared to the same period last year. Meanwhile, rent for two bedroom apartments jumped 5.9 percent to $3,461.
While rent in Manhattan and Brooklyn reach astronomical heights, rates in Queens are going in the opposite direction.
The median rental price in the northwest part of the borough dropped by five percent to $2,768, this is in spite of year-on-year increases for the rental rates of studios, one-bedrooms, two-bedrooms and three-bedrooms.