Rent Increases on Lease Renewals Cooled Off in April
In April 2023, rent increases on lease renewals for market-rate apartments in NYC cooled off to 6.8% compared to 20.6% a year before and 10.8% in March 2023. Increases on lease renewals have stabilized compared to 2022, where the market saw steep corrections in rent and 20%+ increases were standard. However, the majority of lease renewals are still in the sub-5% range. Meaning, landlords are increasing rents less than 5% when their tenants are up for renewal. Notably, rent increases in Brooklyn have surpassed those in Manhattan. This may be indicative that rental momentum in Brooklyn will continue into the summer months.
New York City Lease Renewals
| Apr 2023 | Mar 2023 | Feb 2023 | Jan 2023 | Apr 2022 | |
|---|---|---|---|---|---|
| Average Lease Renewal Change (%) | 6.8% | 10.8% | 10.2% | 8.1% | 20.6% |
April 2023 Lease Renewal Breakdown By Increase
73% of lease renewals in April were between 0-4%.
April 2022 – April 2023 Renewal Change (Manhattan, Brooklyn, Queens)
Rent increases on renewals continue to drop below previous year levels. April saw a slight reprieve in rent increases from the first few months of 2023.
