JAN 04, 2025
The New York City rental market showed signs of cooling in October 2024, with nearly 20% of listings offering concessions like free rent—a trend not seen since July 2021, according to a report by StreetEasy. This uptick in concessions reflects the growing rental inventory and challenges renters face in affording the city’s high costs. The shift is giving tenants more bargaining power as the market adjusts to economic pressures and seasonal trends.
In October 2024, 19.7% of listings offered concessions such as one month of free rent, a significant increase indicating landlords’ efforts to attract renters. This coincided with a 2.1% year-over-year rise in rental inventory, with the total number of units increasing from 33,361 in October 2023 to 34,061 in October 2024.
Among the boroughs, Queens experienced the most dramatic inventory growth, with a 14.5% increase, reaching 4,888 units on the market compared to 4,268 last year. This influx of available apartments has made concessions more prevalent, with 19.5% of Queens rentals offering incentives.
While inventory grew, the median asking rent across New York City still climbed modestly by 2.1% year-over-year, from $3,601 in October 2023 to $3,676 in October 2024. However, Queens saw the largest percentage increase in median asking rent at 3.4%, with prices rising from $2,902 to $3,000. Notable areas like Forest Hills experienced an 11.8% spike, outpaced only by Manhattan’s Greenwich Village at 12.1%.
Despite this growth, renters are finding temporary relief as competition cools. StreetEasy predicts that as the winter months approach, asking rents will decline further from their summer peak of $3,829, giving renters more time and leverage to negotiate better deals.
Amid these market shifts, the Nov. 13 passage of the Fairness in Apartment Rental Expenses (FARE) Act by the New York City Council offers hope for renters struggling with upfront costs. The FARE Act mandates that agents be paid by those who hire them and requires rental listings to disclose all fees.
By reducing financial barriers like broker fees and increasing transparency in rental costs, the FARE Act is expected to alleviate some of the burdens for the city’s renters. This could particularly benefit the two-thirds of New Yorkers who rent, by lowering lock-in effects and providing more flexibility in their housing choices.
As the rental market adjusts to increasing inventory, slowing rent growth, and rising concessions, tenants are poised to see greater flexibility and options. The upcoming winter months, typically a slower period for renting, may continue to ease competition and provide opportunities for better deals.
However, the broader issue of New York City's housing shortage persists, keeping rents elevated and affordability a pressing concern. While measures like the FARE Act offer incremental relief, systemic challenges in the city’s housing supply will likely remain a focal point in the years ahead.
For now, renters can expect a cooling market and better negotiating conditions as 2024 draws to a close.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
