Rent Increases on Lease Renewals Continue to Cool
In May 2023, rent increases on lease renewals for market-rate apartments in NYC cooled off to 4.9% compared to 17% a year before and 6.8% in April 2023. After a year of mostly double-digit increases, renters got some reprieve as landlords handed out sub-5% rent increases in the majority of cases. Notably, rent increases on lease renewals for apartments priced less than $2500 received the largest increases – around 8%. But why are rent prices on renewals cooling as the summer rental season heats up? Perhaps it’s indicative that rents have finally reached their top and landlord’s feel there isn’t the same upside to put units back on the market.
New York City Lease Renewals
| May 2023 | Apr 2023 | Mar 2023 | Feb 2023 | Jan 2023 | May 2022 | |
|---|---|---|---|---|---|---|
| Average Lease Renewal Change (%) | 4.9% | 6.8% | 10.8% | 10.2% | 8.1% | 17.5% |
May Renewal Breakdown By Increase
78% of lease renewals in May were between 0-4%.
May 2022-May 2023 Renewal Change (Manhattan, Brooklyn, Queens)
Rent increases on renewals continue to drop below previous year levels. May saw another reprieve in rent increases from the first few months of 2023.
