Manhattan Rent Hits Record $4,571 Amid Rising Market Pressure

Manhattan rents have reached record highs, with the median monthly rent hitting $4,571 in May 2025, marking the third new peak in four months amid strong demand and rising rental prices per square foot. Despite increasing inventory levels, supply has not kept pace with lease signings over the past five years, leading to fierce competition where nearly 25% of leases went above asking price, while landlord concessions have sharply declined. The Fairness in Apartment Rental Expenses Act (FARE Act), which prohibits landlords from charging broker fees to tenants, took effect recently and is expected to drive further rent hikes, as landlords incorporate these costs into monthly rents. Brooklyn and northwest Queens have seen slower rent growth but notable increases in listing inventories, with Brooklyn's median rent at $3,650 and Queens at $3,625. Although the FARE Act reduces upfront moving costs for renters, real estate groups warn it may lead to higher rents and fewer listings, a claim that historical data disputes, suggesting only modest rent increases in broker-fee areas compared to the rest of the market. Overall, while New York renters are benefiting from reduced initial fees, the rental market remains expensive and competitive, with rents likely to continue rising through the summer rental season.