Apartment seekers in Manhattan saw little relief this winter, with rents remaining near historic highs and competition showing few signs of easing.

Data from appraiser Miller Samuel Inc. and brokerage Douglas Elliman show that the median rent for new leases signed last month reached $4,720, representing an increase of nearly 9% compared with December a year earlier. That figure was only $30 below November’s median rent, which marked the highest level ever recorded by the firms.

Although New York’s rental market usually slows during the holiday season, that pattern failed to materialize. Competition for available apartments stayed strong throughout the year, even as the number of listings shrank. Inventory in December was down 16% from the same month last year, the steepest annual decline since the surge in leasing activity seen during the pandemic-era rush in August 2022.

According to Jonathan Miller, president of Miller Samuel, the sustained appetite for rentals runs counter to what would normally be expected. Home sales in Manhattan have been increasing, a trend that historically draws some demand away from the rental market.

Instead, both the sales and rental markets posted strong performances in December, a combination Miller said points to continued pressure on prices. With limited inventory and few quick solutions in a city where new construction takes time, competition is likely to remain fierce. As Miller put it, “it’s tough to build quickly.”

Miller expressed little optimism that renters will see meaningful relief in the near term. “I’m finding it difficult to come up with a way that affordability will noticeably improve this year,” he said. “The best case is to hope for rents to flatten out, but right now they’re rising at double the rate of inflation.”

Higher costs were not confined to Manhattan. Renters in other parts of the city also faced increases, with the median rent in Brooklyn climbing to $3,850 in December, a 10% jump from a year earlier. In northwest Queens, which includes Astoria and Long Island City, median rents rose nearly 8% year over year to $3,652.

{Matzav.com}