Rising Rents in Manhattan Following Mayor’s Election
In the lead-up to Zoran Mamdani’s victory in the mayoral election, Manhattan saw rents soar to near record levels.
In October, the median rent for new leases reached $4,600, marking a 7.1% increase from the previous year and a 1.1% rise month-over-month, as reported by appraisal firm Miller Samuel & Co. and broker Douglas Elliman.
This figure stands as the third-highest ever recorded, which seems quite disappointing for New Yorkers, who generally anticipate a decline in prices during autumn.
Renters looking elsewhere didn’t find much relief either. In Brooklyn, the median rent for rental properties hit $3,850 in October, up 6.9% from last year—again the third highest rate on record. Meanwhile, in northwestern Queens, which includes areas like Astoria and parts of Long Island, rent prices surged 7.4% year-over-year, reaching $3,598.
Even amidst these rising costs, Jonathan Miller pointed out that there’s been an uptick in apartment searches, driven by a housing shortage. He shared this insight with Bloomberg.
Mamdani’s campaign focused heavily on these affordability challenges. He promised to halt rent increases on rent-stabilized apartments, promote free public transport, and establish a city-operated grocery store.
As rents continue to climb, it’s evident that many residents, particularly renters—who represent about two-thirds of New York City’s population—are feeling the strain.
The issue of housing costs has resonated strongly with voters in recent elections nationwide, contributing to Democratic wins in gubernatorial races in places like New Jersey and Virginia.
A survey revealed that a significant 72% of New York City voters identify housing costs as a major concern.
Wall Street expressed anxiety about Mamdani’s election, particularly regarding his proposed tax on wealthy residents, fearing it might push affluent New Yorkers to leave the city.
Yet, according to Miller, “no one is leaving New York,” highlighting an increase in both rental and home sales activity as of October.
If there were indeed a mass exodus, he suggested, we wouldn’t be seeing rising rents and increased rental interest—quite the opposite is happening. It seems housing costs are worsening.
In the luxury segment of Manhattan real estate, the median price soared to $11,995 in October, an astonishing 20% jump compared to the previous year.
A significant aspect of Mamdani’s agenda was his “Yes In My Backyard” (YIMBY) approach aimed at bolstering affordable housing initiatives, which includes a pledge to create 200,000 new union-built housing units.
The new mayor stands to gain from housing-related ballot measures that voters approved on Election Day, though he hasn’t made it clear how he plans to utilize them.
Mayor Eric Adams has pushed forward with a proposal that delegates some authority to the mayor’s office, aiming to streamline the notoriously slow approval processes associated with new housing developments, despite facing considerable resistance from city council members.
