Anyone who’s tried to rent an apartment in New York City knows that it’s highly competitive and highly priced, and the latest data suggests this market is showing no signs of letting up.
In August 2024, the median asking rent for apartments in four New York City boroughs — Manhattan, Queens, the Bronx, and Brooklyn — was $3,425, a $76 increase from a year ago.
The Big Apple’s median rent price is nearly double the national median of $1,753; it is one of the only major cities where rents are still rising.
“In contrast to the overall declining trend seen across the top 50 markets, the median asking rent in New York City continues to rise annually, increasing by $76, or 2.3%, compared to a year ago,” notes Realtor.com economist Jiayi Xu in her analysis. “Although New York City was one of the rental markets that saw the steepest rent declines during the [COVID-19] pandemic, its median asking rent rebounded to pre-pandemic levels by spring 2022 and has continued to rise annually since then.”
And while salaries in New York City are often higher to cover the metro’s astronomical living expenses, apparently they aren’t high enough. The average New Yorker spends around 38.1% of their income on rent — much more than the recommended 30%.
Smaller, affordable apartments are drawing interest
Once again, New Yorkers were looking for smaller, more affordable apartments. While the median asking rent for 0-2 bedrooms increased 4.2% year over year, to $3,367, the median asking rent for 3-plus bedrooms fell by 5%, to $4,932. (Data for Staten Island is currently under review and not included in these calculations.)
When you look at it over a five-year period, the shifts are rather shocking. Rents for 0-2 bedroom apartments in New York have climbed 16.3%, while rents for 3-plus bedrooms have increased by 4.6%.
Much of the increase is likely due to artificially low pandemic-era rents meant to entice renters to stay in the city.
Manhattan rents dropped
Manhattan’s median rent was down 2.2% year over year and down 7.8% from its 2019 peak.
“This suggests a continued dip in demand in the most expensive borough, possibly reflecting an ongoing trend of workers opting for commutes and taking advantage of flexible work arrangements to secure more affordable housing, as Realtor.com previously found in the for-sale market,” says Xu.
This latest report found that to afford renting a typical home in Manhattan without spending more than 30% of your income on housing (including utilities) — which is considered the standard measure of affordability — you’d need a gross household income of $14,907 per month, or $178,880 per year.
That’s a decrease from July 2024, when you’d need a gross household income of $179,560 a year, but it’s still unaffordable for many.
Of course, real estate in New York City is all about location, which is why you’ll see a vast disparity in rents across the boroughs.
The Bronx remains the most affordable borough
The popularity of remote work is also likely contributing to an influx of interest in the outer boroughs — the Bronx, Brooklyn, and Queens in particular.
The Bronx continues to be the most affordable place to rent among the boroughs, with a median rent of $3,163.
Its relative affordability doesn’t mean that the market is at all stagnating — the median asking rent increased 7.8%, or $228, year over year.
The borough has seen an influx of building construction in the past year, with 9,842 new units added to the market.
Incredibly, the median rent price in the Bronx has increased 56% since 2019, and is now $1,135 more than it was five years ago. To be able to afford rent in the Bronx, you’d need to make $126,520.
That’s quite a lot, considering the median income in New York City across all five boroughs is $76,577, according to a 2023 U.S. Census Bureau report.
Queens rents drove upward
Queens also saw substantial rent increases.
The tree-lined borough offers an easy commute into midtown Manhattan, which is likely a draw for some New Yorkers who have been asked to return to in-office work.
The median asking price in Queens increased by 11.1% year over year, to $3,427. That’s $343 more per month than a year ago, and 38.3% more than five years ago.
To afford renting a typical apartment in Queens without spending more than 30% of your income on housing, you’d need to have an annual income of $137,080.
Brooklyn prices also increased
Brooklyn has in recent years been inundated with waterfront developments and luxury condos, so it’s no surprise that rents increased 5.1% year over year, to an average of $3,790.
In 2023, there were 9,271 new units built and 5,285 new building application permits filed.
That’s 36.6% — or $1,015 — more than five years ago.
You’d need to make $151,600 to avoid spending more than 30% of your income on rent in Brooklyn.
