The rental dip of late 2022 seems to be over.
In February 2023, rent increases on lease renewals for market-rate apartments in NYC was 10.2% compared to 26.4% a year before and 8.1% in January 2023. Increases on lease renewals have stabilized compared to the levels seen in 2022, where the market saw steep corrections in rent. 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 and steep double digit increases are becoming less common.
New York City Lease Renewals
| Feb 2023 | Jan 2023 | Dec 2022 | Nov 2022 | Oct 2022 | Feb 2022 | |
|---|---|---|---|---|---|---|
| Average Lease Renewal Change (%) | 10.2% | 8.1% | 3.2% | 5.2% | 5.9% | 26.4% |
February 2023 Lease Renewal Breakdown By Increase
66% of lease renewals in January were between 0-4%.
Feb 2022 – Feb 2023 Lease Renewal Change (Manhattan, Brooklyn, Queens)
While rent increases on renewals continue to drop below previous year levels, prices are now starting to tick upward.
