New York City’s rental market is reaching dizzying new heights, shattering previous records and exacerbating the city’s affordability crisis. According to a report released by Douglas Elliman and Miller Samuel, median rents in Manhattan and Brooklyn soared to unprecedented levels in April 2024, with no signs of abating as the peak leasing season approaches.
The data paints a grim picture for renters struggling to keep up with the relentless rise in housing costs. In Manhattan, the median rent climbed to a staggering $4,250 last month, a 3.7% increase from March and a 0.2% annual hike. This figure represents a staggering 26.7% surge compared to the pre-pandemic average in April 2019. Brooklyn followed a similar trajectory, with the median rent reaching $3,599, a 3% monthly increase and a 26.7% jump from April 2019 levels.
The report’s author, Jonathan Miller, warns that these eye-watering numbers could be just the beginning. “This is the third time in the four months of 2024 that we’ve seen rental prices rise year-over-year,” Miller said. “And this is increasing the odds — because rents don’t peak until the summer — that we could actually see last year’s July/August record broken.” The rental frenzy extends beyond Manhattan and Brooklyn, with northwest Queens also experiencing a sharp spike. The median rent in the area reached $3,244, the second-highest April figure on record, marking a 1.4% increase from March and a 15.1% jump from April 2019. The escalating rents are compounding New York City’s affordability crisis, which has reached alarming proportions. A recent report from the city comptroller revealed a worsening food insecurity crisis, with one in nine households unable to access adequate nutrition.
Moreover, a StreetEasy/Zillow analysis found that New York City has the largest gap between wage and rent growth in the country, with rents growing over seven times faster than wages did last year. As summer approaches and leasing activity typically peaks, the city’s renters brace for further strain on their already stretched budgets. The affordability crisis threatens to deepen, leaving many struggling to keep a roof over their heads in the city they call home.