Introduction to NYC Rent Increase
Rents rise across NYC in Q1 2025, marking 18% increase since pandemic began.
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Current State of Rent in NYC
The median asking rent for apartments in New York City went up 5.6% year-over-year in the first quarter of 2025, from $3,218 last year to $3,397 this year, according to a report by the real estate site Realtor.com.
Historical Context of Rent Increase
This increase among rental properties listed on Realtor.com continues the trend of the median asking price rising annually since Spring 2022, when it originally returned to pre-pandemic levels. Now, the city’s median asking rent is 18.1% higher than the $2,876 put up when the COVID-19 pandemic started in the first quarter of 2020.
Demand for Units
Units with up to two bedrooms were in high demand during the first quarter of 2025, compared to those with at least three bedrooms. The greater demand for the smaller units led to a bigger increase in its price compared to the larger units. The median asking rent for units of up to two bedrooms rose 7.2% year-over-year, from $3,139 in 2024 to $3,365 in 2025. Units with at least three bedrooms, meanwhile, had a 1.2% increase, from $4,717 last year to $4,773 this year.
Borough-Specific Trends
All four New York City boroughs examined in the study – Manhattan, Queens, Brooklyn and the Bronx – experienced growth from the previous year. Staten Island is not included in the study yet because its data is still being reviewed.
Manhattan
Manhattan led the boroughs with the sharpest increase in asking rent. It had a 5.5% jump year-over-year, from $4,260 in 2024 to $4,495 in 2025. Based on this monthly rental price and assuming tenants would need to devote 30% of what they earn a year towards rent, the annual income required for these units is $179,796, or $14,983 a month.
Brooklyn
Brooklyn ranked second among the boroughs in asking price increases from the first quarter of 2024 to the first quarter of 2025. The borough experienced a 5% climb, from $3,570 last year to $3,748 this year. Tenants would need an annual income of $149,916 if they devote 30% of their earnings to paying rent, which amounts to $12,493 a month.
Queens
In Queens, the median asking rent increased by 4.3%, from $3,162 in the first quarter of 2024 to $3,298 in the first quarter of 2025. The annual income required here would be $131,916, equating to $10,933 a month.
The Bronx
There was very little change in the Bronx compared to the other boroughs in the study. Its median asking price just boosted by 0.7%, from $2,990 last year to $3,010 this year. The necessary annual income is $120,396, which translates to $10,033 a month.
Comparison to Pre-Pandemic Levels
The trends among these boroughs are much different when compared to the start of the COVID-19 pandemic. While the Bronx had the smallest increase in median asking rent year-over-year during the first quarter of 2025, it surged the most from the first quarter of 2020, having gone up 41.2%, from $2,132 to $3,010. Manhattan, meanwhile, went from first year-over-year to last from 2020, with just a 0.2% bump over that period of time, from $4,487 to $4,495.
Impact of New Construction
Newly permitted units had huge gains in 2024 compared to the average from 2019-2023, with the number increasing across the city from 25,081 during that five-year stretch to 26,021 in 2024. However, despite this notable leap in the number of units permitted for construction across the city, there is concern that the 25% tariffs on steel and aluminum being imported into the United States could result in less homes being put on the pipeline in 2025. Builders may be hesitant to start new projects, and developers may feel compelled to pause or even halt existing plans due to the higher costs for construction that these tariffs cause.
Conclusion
In conclusion, the NYC rent market has seen a significant increase since the COVID-19 pandemic, with an 18% rise in median asking rent. The demand for smaller units has driven up prices, and boroughs like Manhattan and Brooklyn have seen the sharpest increases. However, the introduction of tariffs on steel and aluminum could impact new construction and slow down the growth of the rental market.
FAQs
- Q: What was the year-over-year increase in median asking rent in NYC in Q1 2025?
A: 5.6% - Q: Which borough had the sharpest increase in asking rent?
A: Manhattan - Q: What is the required annual income to afford a unit in Manhattan?
A: $179,796 - Q: How have tariffs on steel and aluminum impacted new construction?
A: They may result in less homes being put on the pipeline in 2025 due to higher construction costs.
