Rental Market in New York City Cools Down
Competition among renters in New York City cooled in October 2024 to the degree that 19.7% of listings were offering concessions on rent, marking the highest level in the city since July 2021 at 22.7%, according to a report by the real estate listing site StreetEasy.
Rise in Listings Offering Concessions
The rise in listings offering at least one month of free rent is reflective of growth in the rental inventory and an inability for many to afford to rent in New York City. High upfront costs and elevated rents have especially contributed to less demand to live in New York City. As a result, more listings are willing to provide concessions in order to ensure they can rent it out.
Median Asking Rent and Rental Inventory
The median asking rent in New York City ended up increasing 2.1% year-over-year, from $3,601 in October 2023 to $3,676 in October 2024. Queens experienced the most significant percentage jump in median asking price among the boroughs over this period of time, rising 3.4%, from $2,902 last year to $3,000 this year. Forest Hills led the borough in the highest jump in median asking price, at 11.8%. Only Greenwich Village in Manhattan had a bigger bump out of all the New York City neighborhoods, at 12.1%.
New York City’s rental inventory also increased 2.1% year over year, from 33,361 units in October 2023 to 34,061 in October 2024. Queens led the way in inventory growth among the boroughs during this period, rising 14.5%, from 4,268 rentals on the market last year to 4,888 this year.
Chart by StreetEasy
Thanks to the rising inventory giving renters more options to consider, concessions are becoming more common in an effort to make certain listings stand out. This is especially true in Queens, where 19.5% of its rentals in October 2024 were offered with at least one month of free rent.
Future Outlook
As the winter months approach, StreetEasy anticipates that competition will continue to ease among renters in New York City. This will lead to asking prices trending down from their peak of $3,829 set in the summer. As a result, renters will have more time to search and possibly negotiate for better deals.
Fairness in Apartment Rental Expenses (FARE) Act
Even with rent growth slowing, concessions increasing, and competition softening, renters in New York City continue to be burdened by a housing shortage. However, StreetEasy expressed some optimism that the Nov. 13 passage of the Fairness in Apartment Rental Expenses (FARE) Act by the New York City Council will help provide at least some relief for renters in the near future.
Through the FARE Act, agents would be compensated by those who hire them. Additionally, rental listings will be required to disclose any fees tenants must pay, potentially helping renters gain a better understanding of what they can and cannot afford. This law could impact approximately two-thirds of those who rent in New York City, as the reduction in upfront costs and the easing of lock-in effects on renters could help lower the financial barriers many face when it comes to housing.
Conclusion
The rental market in New York City is showing signs of slowing down, with concessions becoming more common and competition easing among renters. While the housing shortage remains a challenge, the passage of the FARE Act could bring some relief to renters in the near future.
FAQs
Q: What is the current state of the rental market in New York City?
A: According to StreetEasy, 19.7% of listings in October 2024 were offering concessions on rent, marking the highest level in the city since July 2021.
Q: What is the main reason for the rise in listings offering concessions?
A: The main reason is the growth in the rental inventory and an inability for many to afford to rent in New York City, leading to less demand and more listings willing to provide concessions.
Q: What is the Fairness in Apartment Rental Expenses (FARE) Act?
A: The FARE Act is a law passed by the New York City Council that requires agents to be compensated by those who hire them and rental listings to disclose any fees tenants must pay, potentially helping renters gain a better understanding of what they can and cannot afford.
Q: How will the FARE Act impact renters in New York City?
A: The FARE Act could impact approximately two-thirds of those who rent in New York City, reducing upfront costs and easing lock-in effects on renters, which could help lower the financial barriers many face when it comes to housing.
