Manhattan rents have been high for a long time, but they’ve reached a new peak, according to a report released Friday.
The borough’s median rent increased 9.5 percent year-over-year in September to $3,339, according to the Q3 2015 StreetEasy Market Reports. This jump is the fastest rents increased since StreetEasy began collecting rent data in 2008.
Leading the way were median asking rents for one-bedroom units in Manhattan, which increased 10.7 percent to $3,271. Asking rents for studios and two-bedrooms increased 6.5 percent and 9.7 percent, respectively, while rents for units with three-bedrooms or more declined 3.6 percent.
Across the river in Brooklyn, rents also grew, but at a slower pace. The monthly median asking price increased 1.5 percent from last year to $2,600 in September.
“Renting in Manhattan is more expensive than it’s ever been, a fact that weighs heavily on the city’s long-term housing affordability,” said StreetEasy data scientist Alan Lightfeldt. “In the face of overcrowding, high rents, and growing competition in Manhattan and parts of Brooklyn, more New Yorkers will have to turn their attention to South and East Brooklyn, and above 110th Street in Manhattan to lower their rent burden.”
Four of the top five fastest growing neighborhoods are in Brooklyn: Canarsie (33.3 percent), Brownsville (28.8 percent), Northeast Flatbush (26.3 percent) and Gowanus (23.1 percent). Murray Hill had the single largest gain in Manhattan, with an annual median rent growth of 16.7 percent.
The third quarter also showed a competitive sales market in the two boroughs, according to the report, with the median resale price of all Manhattan and Brooklyn homes rising to another record high. Manhattan resale prices of all home types increased 6.3 percent from last year to a record $982,958. Brooklyn also reached an all-time high in September, increasing 9 percent year-over-year to $545,139.
For the first time, StreetEasy also reported on what homes in the Manhattan and Brooklyn markets are priced within the luxury category. The report found that 21.9 percent of all homes available in Manhattan throughout the quarter were priced in the luxury category, which was above $3.59 million in that period. The price of a luxury home in Brooklyn was at $1.39 million, accounting for 20 percent of homes available throughout the quarter.