OverviewThe median asking rent for all unit sizes across New York City reached $3,382 in December 2024, marking a 5.6% increase year over year and a 0.6% rise from the previous month.

Smaller rental units have driven the growth, with 0-2 bedroom units increasing by 7.4% year over year, while rents for larger 3+ bedroom units decreased by 1.4%. Manhattan and Brooklyn, the city's priciest boroughs, have reversed their previous trends and saw significant rent hikes. A slowdown in multi-family construction in 2023 has contributed to the rent increases observed in 2024.

Median Rent Figures for December 2024

‍The median asking rent across all property types in NYC was $3,382, which represents a 5.6% increase (or $180) from December 2023. This marks the highest monthly rent increase in the city in over a year, surpassing even the 5.8% rise in August 2023. While rents in the U.S. as a whole have been declining for 17 consecutive months, NYC's rents have been climbing steadily since the pandemic’s peak, with the current median rent $485 or 16.7% higher than it was in December 2019.

Smaller Units Fuel Rent Growth, While Larger Units See Decline

‍The primary source of rent increases this month comes from smaller units. Median rents for 0-2 bedroom apartments surged by 7.4% year over year, whereas larger units with 3+ bedrooms saw a 1.4% decrease. This marks the 8th consecutive month of year-over-year declines for larger units, while smaller unit rents have continued their upward trajectory since October 2021. The demand for 0-2 bedroom units reflects a continued influx of young people moving into the city, while the demand for larger units appears to be tapering off, particularly among families. This trend also provides an opportunity for young renters to share larger apartments with roommates, helping to offset costs.

Rent Growth by Borough

‍In December 2024, Manhattan’s median asking rent climbed to $4,530, a 2.1% month-over-month increase and a 6.4% year-over-year gain. Similarly, Brooklyn saw a 2.9% rise from November and a 5.8% increase compared to December 2023. Until recently, rent increases in New York City were mainly driven by less expensive boroughs, which had experienced more modest rent reductions during the pandemic and have since rebounded. Both Manhattan and Brooklyn have now returned to pre-pandemic rent levels, with Manhattan up 1.8% compared to December 2019. These two boroughs are currently defying seasonal trends, experiencing significant growth in the early winter months. Meanwhile, the Bronx reported its lowest year-over-year rent growth (4.0%) since March 2022, although rents there are still up 46.2% compared to December 2019.

Impact of 2023 Construction Dip on Rent Prices

‍December 2024 rent growth is particularly notable when compared to the -1.1% national rent change across the 50 largest U.S. metropolitan areas. The shortage of available housing in NYC is partly due to a sharp decline in construction activity in 2023, with the number of permits for new multi-family units falling by 41.4% from the previous year. The lack of new units has led to increased competition for available rental properties, driving rents higher. However, construction permits have rebounded in 2024, which may alleviate some rent pressure in 2025 as new units are completed.

Conclusion

‍New York City's rental market remains strong despite national trends. With growing demand for smaller units and a return to pre-pandemic rent levels in the priciest boroughs, it’s clear that NYC’s rental landscape continues to evolve. The slowdown in construction in 2023 has played a significant role in pushing rents higher, but a rebound in new building permits could offer relief in the near future.

Data Summary

• Overall Median Rent: $3,382 (+5.6% YoY)
• 0-2 Bedrooms: $3,344 (+7.4% YoY)
• 3+ Bedrooms: $4,533 (-1.4% YoY)
• Manhattan Median Rent: $4,530 (+6.4% YoY)
• Brooklyn Median Rent: $3,799 (+5.8% YoY)
• Queens Median Rent: $3,311 (+5.9% YoY)
• Bronx Median Rent: $3,038 (+4.0% YoY)