NYC Rents Rise in January, Set to Stay High in 2025

New York City kicked off 2025 by bucking the rental market’s seasonal slowdown — once again.

The same old story of strong demand, too few apartments and higher mortgage rates held tenants in a high-priced vice last month as free-market landlords raked in the rents.

And macroeconomic forecasts signal little chance of a slowdown.

Manhattan’s median rent reahed $4,350, a 5 percent premium over last January’s level and marking the fourth-straight month of year-over-year gains, according to a report by appraiser Jonathan Miller for Douglas Elliman.

“I don’t know if I’d say it was the tightest January I’ve ever seen, but it certainly is robust,” Miller said.

Renters inked new leases in droves. Signings surged 27 percent from January 2024, stamping the 10th consecutive month of annual increases. Meanwhile, prospective homebuyers continue to delay and pray that if they wait long enough mortgage rates will fall.

That shakes out to a supply crunch and higher prices.

Rents in Northwest Queens followed Manhattan’s trajectory, rising annually for the third time in four months to hit $3,400. The rent in Brooklyn held tight compared to last year, but the rental price per square foot crested a new high at $57.90.

Look ahead to the rest of 2025 and there’s next-to-no sign trends will change.

The Federal Reserve had signaled it would not cut rates until at least the second quarter amid the inflationary threats posed by President Donald Trump’s tariffs. Then, on Wednesday, the Consumer Price Index jumped 3 percent annually, an unexpected spike that observers said could stay Federal Reserve Chair Jay Powell’s hand for longer.

“There is no hurry to cut rates, which means that mortgage rates will likely remain stuck at elevated levels, which will keep upward pressure on rents,” Miller said.

Plus, the tariffs on steel and aluminum Trump enacted Monday will likely drive home costs up, too, in yet another obstacle for would-be buyers.

All that is to say: happy hiking, landlords.