MANHATTAN | Jan 2025

2025 🎉.

Explore Manhattan’s December 2024 rental market trends: stable leasing, slowing rent growth, declining vacancies, and neighborhood highlights like surging activity in the East Village and premium SoHo rents.

THE MONTHLY RENTAL REPORT: DEC
MANHATTAN

• Stable Leasing Activity: Leasing activity in December 2024 matched historical averages, with approximately 2,900 leases signed. This stability was attributed to slower rent growth and a decline in inventory to a two-year low.

• Rent Trends: The median rent in December was $4,500, 4% below the July peak. Annual rent growth slowed significantly, with modest year-over-year increases for doorman (+2%) and non-doorman units (+3%).

• Neighborhood Variations: Notable trends included a 32% surge in leasing activity in the East Village/Lower East Side, while Gramercy experienced a 27% decline, likely due to a sharp 31% increase in average rent.

• Chelsea/Flatiron: Leasing activity increased by 21% YoY, highlighting strong demand in this vibrant area. Average rent grew 6% YoY, reaching $6,700, driven by luxury apartment appeal. The vacancy rate dropped to 2.61%, reflecting a 0.8% decline from December 2023.

• Greenwich Village/West Village: Leasing activity fell slightly by 4% YoY but remained relatively stable. Average rent rose to $7,327, marking a 5% YoY increase. The vacancy rate decreased to 1.21%, down 0.4% from December 2023, showcasing limited supply and steady demand.

• Vacancy Rates Decline: Visible vacancy dropped to 1.84%, marking a continued trend of annual decreases over the past year. The East Village/Lower East Side reported one of the lowest vacancy rates at under 2%.

• Active Listings Drop: Listings decreased by 31% compared to December 2023, with renters favoring lease renewals for cost and stability reasons.

• Days on Market Increased: For the first time in over a year, days on market rose by 9% annually, reflecting typical winter seasonality but more dramatically than in previous years.

• Luxury and Larger Units in Demand: Three-bedroom units saw the highest rent increase (+6% YoY), with SoHo/TriBeCa maintaining its premium status with average rents exceeding $12,000.