Midtown, Hell's Kitchen Rents Rise After Yearlong Decline: Study

MIDTOWN MANHATTAN, NY — Rent prices in Midtown and Hell's Kitchen began to tick upwards last month, part of a citywide trend that signals an end to the pandemic-induced real estate slump, according to a new report.

The study by StreetEasy, released Wednesday, examined real estate listings across the city during the month of April.

It found that after declining for 12 consecutive months, asking rents stabilized in April, with the citywide median rent rising to $2,499 — $4 higher than in March.

That signals that the city's deal-filled market, a haven for prospective renters, is on its way out. Still, prices are a far cry from where they stood in 2019, before the pandemic, when the median rent was $2,800.

In Midtown Manhattan, rents ticked up in nearly every part of the neighborhood examined in the study. Here's a breakdown:

Central Park South:

• April median asking rent: $6,800 (up from 2021 first-quarter median rent of $6,700, but still 15 percent below the pre-pandemic number)
• April median asking home price: $2,550,000 (up from 2021 first-quarter median price of $2,547,000; 27.8 percent higher than the pre-pandemic number)

Midtown (central):

• April median asking rent: $3,500 (up from 2021 first-quarter median rent of $3,395, but still 11.4 percent below the pre-pandemic number)
• April median asking home price: $1,925,000 (up from 2021 first-quarter median price of $1,812,000; 28.6 percent below the pre-pandemic number)

Midtown East:

• April median asking rent: $2,895 (up from 2021 first-quarter median rent of $2,570; still 14.9 percent below the pre-pandemic number)
• April median asking home price: $850,000 (up from 2021 first-quarter median price of $800,000; 5.5 percent below the pre-pandemic number)

Midtown South:

• April median asking rent: $3,400 (up from 2021 first-quarter median rent of $3,225, but still 9.6 percent below the pre-pandemic number)
• April median asking home price: $899,000 (down from 2021 first-quarter median price of $985,000; 10 percent below the pre-pandemic number)

Midtown West (Hell's Kitchen):

• April median asking rent: $2,987 (up from 2021 first-quarter median rent of $2,878, but still 14.7 percent below the pre-pandemic number)
• April median asking home price: $1,196,000 (up from 2021 first-quarter median price of $1,160,000; 14.1 percent below the pre-pandemic number)

All Midtown:

• April median asking rent: $3,000 (up from 2021 first-quarter median rent of $2,895, but still 15.4 percent below the pre-pandemic number)
• April median asking home price: $1,057,000 (up from 2021 first-quarter median price of $999,995; 16.3 percent below the pre-pandemic number)

"Coming to an end"

"All in all, it appears that the days of record low rents may be coming to an end," said StreetEasy economist Nancy Wu.

Still, Wu cautioned that New York is "not on solid ground just yet," citing high unemployment, a huge number of empty apartments and the likely persistence of work-from-home, which could shake up the city's geography.

Across Manhattan, median asking rents rose by $14 last month — up to $2,799. (The pre-pandemic figure, meanwhile, stood at $3,400.)

But "there are still deals to be had," StreetEasy writes, noting that a record-high 45.2 percent of Manhattan rentals offered at least a month of free rent as a concession in April.

Other notable trends include declining inventory as more available rentals get snatched up. Across the city, the number of open rentals shrunk by 26 percent last month compared to August's record high.

In Manhattan, there were 28,185 apartments up for rent last month — a 32 percent decline compared to August.

"The summertime, which in the past was peak renter season, will look very different this year," Wu said.

"Commute times have become obsolete for some, opening up flexibility for when to sign a lease. This means that city renters can take their time to move, and rents will creep back up slowly."

Read the full StreetEasy report here