N
ew York City's rental market remains fiercely competitive, with record-high rents and widespread bidding wars. In July, median rent in Manhattan reached $4,700, a 9.3% increase from the previous year, making it the second-biggest annual jump since 2008.

    The market share of leases signed after bidding wars hit an all-time high of 28.9%, with the impacts of the FARE Act still reverberating through the market. The usual summer scramble is compounded by a backlog of would-be homebuyers, who are clinging to their leases as they wait for lower mortgage rates.

    Luxury renters in Manhattan are getting off relatively easy, with median rent rising just 5% year-over-year to $10,500. In contrast, the bottom 30% of the market saw rents rise 14.3% annually to $3,200. The city's rental pool is feeling unusually crowded, with experts attributing the problem in part to reluctant renters waiting for lower mortgage rates.

    Rents are also rising rapidly in other areas, such as Brooklyn and Northwest Queens. Median rent in Brooklyn increased 6.9% annually to $3,850, while Northwest Queens saw a dramatic 8.7% jump to $3,750. The July apartment hunt was hardly easier than in Manhattan, with rates of bidding wars nearly equal to those in the borough.

    With August historically tying with July as the city's hottest rental market, it's likely that record-high numbers will continue.