Inflation vs. signing a new lease in Manhattan: Which is more painful?

Inflation is hurting consumers, but Manhattan median rent, which is outpacing the rate of inflation, appears even more painful.

For the second time, Manhattan median rent showed a large year-over-year increase, but fell shy of a new record, according to the latest edition of the Elliman Report for Manhattan, Brooklyn, and Queens rental markets. Median rent was $4,550 last month, an increase of 8.3 percent compared to September 2024.

Manhattan median rent continues to rise faster than the rate of inflation, wrote Jonathan Miller, president and CEO of appraisal firm Miller Samuel and author of the report. The current U.S. inflation rate is 2.9 percent for the 12-month period ending August 2025.

New leases fell annually in September for the third time, dropping 1 percent, according to the Elliman Report.

Bidding wars were involved in more than one out of five new leases in September and listings fell annually for the third time, dropping 7.9 percent. The vacancy rate was 2.11 percent, which is lower than normal for the Manhattan rental market.

Bidding wars for one in three Brooklyn rentals

Brooklyn median rent climbed annually for the seventh month to the second highest on record, increasing 7.5 percent to $3,925, according to the report.

New leases fell annually for the third time, dropping 6.7 percent in September. Bidding wars were involved in one out of three rentals. Listings remained essentially flat: there was a 0.1 percent decline from September 2024.

New leases fall in Queens for the third time

Median rent for the Northwest Queens region covered by the report was $3,650 last month, an increase of 4.3 percent compared to September 2024.

New leases fell year over year for the third time and nearly one out of four new rentals had a bidding war.

‘Limited availability props up rents’

The Corcoran Group also released Manhattan and Brooklyn rental reports for September. Gary Malin, COO at Corcoran, said that Manhattan’s limited availability is keeping rents high.

With “vacancy falling to its lowest level in four years, the borough continues to command premium pricing, especially in doorman buildings,” he said. “It remains one of the most sought-after and competitive housing destinations in the country.”

The Brooklyn rental market appears more “balanced,” Malin noted.

“Inventory was less of an issue in the borough,” he said, thanks to more availability last month than in previous Septembers.

“Brooklyn continues to attract renters who are seeking space, overall value, and community. Its performance in September reflects a market that’s comparatively resilient and responsive to ever-shifting demand,” Malin said.