New York City apartment rents have fallen below $3,000 for the first time since 2011. A new report from StreetEasy shows that median asking rent for apartments is $2,990 in the third quarter. Record high rent cuts during the pandemic have led to this decrease. On StreetEasy, 44.7% of apartment listings were discounted, a record for the website.

Manhattan was not the only market segment to see a decline in rents. During the third quarter, the Manhattan Rent Index fell 7.8% year-over-year, bringing the median asking rent in Q3 to $2,990; the Brooklyn Rent Index fell 2.5% year over year, bringing the median asking rent in Q3 to $2,599; and the Queens Rent Index fell 2.2% year-over-year, bringing the median asking rent in Q3 to $2,200.

As rents decreased for existing properties, the apartment supply in New York City also increased, putting more downward pressure on rents. The Manhattan rental inventory increased nearly 70% or 72,267 units. That is 30,000 more units than last year. Renters are no longer willing to pay a premium to live in the city because they do not have to travel to the office, and landlords have had to face the new reality and lower rents to fill units.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.