M
anhattan rents defied seasonal expectations, rising 2.3% to a median of $4,295 in October, according to a report by appraiser Jonathan Miller. This uptick marks the first increase in six months and is attributed to a shift in market sentiment following Donald Trump's election as president. As investors priced in the potential for inflationary policies, including tariffs on Chinese imports, mortgage rates rose sharply.

    The yield on the 10-year treasury increased, sending the rate on the 30-year mortgage from 6.12% to 6.72% in October, according to Freddie Mac. This rise in borrowing costs is expected to push would-be homebuyers back into rentals, potentially leading to further rent increases through the winter.

    Additionally, a recent ban on broker fees could contribute to rising rents as landlords absorb the cost of hiring brokers by increasing listing prices. However, this change will not directly impact tenants' costs, but rather shift the burden from key fees to rental rates.