N
ew York City's outer boroughs are experiencing rising demand and rents, according to Realtor.com's August report on NYC rentals. This surge in demand is paradoxically linked to a desire for affordability, which has led to decreasing rent prices in pricier Manhattan apartments.

    Queens saw the fastest annual rental growth last month, with median rent increasing by 11.1% year-over-year and 38.3% over the past five years, reaching $3,427 per month. The Bronx also experienced significant growth, with a 7.8% increase from last year's median rent of $3,163.

    Brooklyn, however, saw the least rental growth, with a 5.1% increase in median monthly asking rent to $3,790. Manhattan, on the other hand, has been experiencing declining rents for over a year, with a 2.2% decrease from last year's median asking rent of $4,472.

    The report also noted that apartment sizes are playing a role in rental trends, with studios, one-bedrooms, and two-bedrooms seeing a 4.2% increase in median asking rent since August 2023, while units with three or more bedrooms have seen a 5% decline in rent compared to last year.

    This marks the 14th consecutive month of annual rental declines in Manhattan, suggesting a continued dip in demand for the most expensive borough, possibly due to workers opting for commutes and taking advantage of flexible work arrangements to secure more affordable housing.