New York Rent Reached Its Highest Levels, Ever. When Are They Expected To Go Down? Average monthly rent breaks $5,000 in Manhattan for the first time in history.

By Madeline Garfinkle

Opinions expressed by Entrepreneur contributors are their own.

Apartment hunting in Manhattan just got even harder — and much more expensive.

According to a June market report by Douglas Elliman and Miller Samuel, average rental prices in New York City have skyrocketed to historic new heights. Particularly in Manhattan, rent is higher than it's ever been at an average of $5,058 a month, marking a 29% uptick from $3,922 in June of 2021.

The report also tracked data from Brooklyn and Queens, which saw similar climbs from last year's numbers, with increases in average rent of 20% and 15.1%, respectively.

The astronomical hike in rental costs over the past year comes as a whirl of pressure points intersect: individuals returning to the city from pandemic hideaways, mounting inflation, and an acutely tight housing market that has pushed would-be buyers back into renting.

Related: Is a Housing Market Correction Finally Underway?

So, how long will those grappling with the ruthless market have to wait for prices to go down?

The bad news: New Yorkers are likely in for at least another month of high prices since new leasing activity historically tends to peak from May to September, according to a study by RentHop.

However, there is good news, too. The high prices can only stay so high for so long. "The best thing for high housing prices is high housing prices," Jonathan Miller CEO of Miller Samuel told The New York Times back in June. "When the consumer can't afford to pay, they go somewhere else."

Madeline Garfinkle

News Writer

Madeline Garfinkle is a News Writer at Entrepreneur.com. She is a graduate from Syracuse University, and received an MFA from Columbia University. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

'I Was Called Crazy': This 27-Year-Old's Side Hustle Hit $30,000 a Month in Under a Year — Now It's Worth Millions

Changing regulations forced Angel Rodriguez's jet ski rental company to shut down, and the young entrepreneur had to figure out his next move — fast.

Business News

'How Vulnerable Senior Investors Are': Morgan Stanley Was Ordered to Pay $843,000 to an Elderly Widow Who Was Scammed Out of Millions (and Not By Them)

The scheme involved multiple criminals who pretended to be technical support staffers, employees at the bank, and even government workers.

Marketing

Beyond Likes and Shares — How to Leverage Influencer Partnerships in the New Era of Social Media

Social media is evolving, and traditional marketing tactics are no longer enough. Learn how to leverage influencer partnerships, build authentic connections and navigate dark social to create impactful marketing campaigns that drive real engagement and trust.

Side Hustle

This 31-Year-Old Spends 2 Hours Per Week On His $3,000-a-Month Passive Income Side Hustle: 'Trust Your Vision'

Hansel Moore's home office "wasn't cutting it" — so he found another place to be creative.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.