In this week’s edition, we delve into the intriguing dynamics of the New York City real estate market. Despite an increase in housing inventory, the city continues to witness a rise in rents.

According to a recent report by StreetEasy, asking rents in the city rose 1.7% year-over-year to $3,700 in April 2024, marking the highest since September 2023. However, this growth rate is significantly slower than the 14% increase witnessed a year ago. The slowdown in hiring within the tech and finance sectors is likely impacting the demand from renters in these areas.

The number of rentals on the market across New York City in April was 30,314, up 4.7% from a year ago. Despite this increase, the city’s rental inventory remains 16.2% below its pre-pandemic level in 2019.

Interestingly, the rental dynamics vary across boroughs. Rents have soared in Brooklyn and Queens due to limited inventory and high demand, while the median asking rent in Manhattan appears to be leveling off as inventory grows and demand cools.

This trend of rising rents amid increasing inventory underscores the complex dynamics of the NYC real estate market. While the increase in inventory is a positive sign for prospective renters, the continued rise in rents indicates that supply has not increased fast enough to meet demand.

As we move further into 2024, it will be interesting to monitor these trends and their impact on the NYC real estate market. For now, renters, buyers, and homeowners alike should stay informed and strategize accordingly.

Stay tuned for more updates next week!