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ew York City defies national trends by bucking the decline in rental rates. While prices across the top 50 metropolitan areas fell an average of 1.1% from December, New York City saw a 5.6% increase, according to Realtor.com's latest report.

    The nationwide decrease in rental rates is largely due to the surge in new construction hitting the market, which has led to a decline in absorption rate – the number of newly built rentals leased out within three months of completion. However, this trend is not evident in New York City, where housing supply is limited.

    In contrast to the national median asking price for rent, which stands at $1,695 – its lowest since April 2022 – New York City's median rent for a 0-2 bedroom dwelling has reached $2,967. Manhattan rents are particularly steep, with an overall median rent of $4,487 a month, a 5.4% year-over-year increase.

    Realtor.com senior economist Joel Berner notes that smaller units in Manhattan are receiving more demand than in other boroughs, potentially indicating renewed interest from young people moving into the city. This could be a sign that Manhattan rents had stayed flat following the pandemic recovery period.

    The market is starting to balance itself out, with rents growing at similar rates across all five boroughs. Rental properties are staying on the market for longer than they did last year, with Brooklyn averaging 48 days, Manhattan 51 days, and Queens 46 days. Only the Bronx saw a slight decrease in days on the market.

    In terms of pricing, Manhattan's median asking rent reached $4,530 in December, an increase of 2.1% from November and 6.4% from December 2023. Brooklyn's rent grew 2.9% month over month and 5.8% year over year. The Bronx saw its lowest year-over-year rent growth since March 2022, but still exceeds December 2019 by 46.2%.