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ew York City's November rent growth defied seasonal norms, driven by mortgage rates. Manhattan's median rent hit $4,200, a 5% year-over-year increase and the largest since September 2023, according to appraiser Jonathan Miller's report for Douglas Elliman. Brooklyn and Northwest Queens also saw significant gains, with median rents of $3,500 and $3,458 respectively.

    Typically, leasing demand slows in colder months as tenants wait for warmer weather and more listings. However, this year was different, with new lease signings surging 38% annually in Manhattan, 40% in Brooklyn, and 65% in Queens. Elevated mortgage rates are the primary driver of rent growth, Miller said.

    While mortgage rates have historically been high, they peaked at 6.9% in November, a far cry from the 18% seen in the '80s or the post-Covid record of 8%. However, buyers are waiting for rates to drop, and markets expect another rate cut at the Federal Reserve's December meeting. As mortgage rates have fallen through most of December, their future trajectory depends on President-elect Donald Trump's policies, which could fuel inflation and keep mortgage rates high.