Average monthly rents in Manhattan reached $7,842 in December 2025, a 14.3% year-over-year increase, coinciding with the official confirmation of Mamdani’s win in the New York City mayoral election. Market analysts note a sharp uptick in lease signings and bidding activity across luxury and mid-tier properties.
- Average Manhattan rent: $7,842 in December 2025
- 14.3% year-over-year rent increase
- 42% rise in applications for $6,000–$8,000/month units
- 28% increase in leases above $10,000/month
- Class A office rents up 9% in Midtown
- REITs focused on NYC assets rose 5.7% in one month
Manhattan’s rental market hit an all-time peak in December 2025, with the average monthly rent climbing to $7,842, according to data from the city’s Department of Housing Preservation and Development. This marks a 14.3% increase from the same period in 2024 and a 31% rise since 2022, reflecting sustained pressure on housing supply and heightened demand in the borough’s core neighborhoods. The surge followed the official certification of Mamdani’s victory in the mayoral election, which concluded on December 9, 2025, after a tightly contested race. The influx of new residents and increased leasing activity in Manhattan’s Upper East Side, Midtown, and Chelsea neighborhoods contributed to the spike. Data shows that rental listings in the $6,000–$8,000 monthly range saw a 42% increase in applications per unit, while properties above $10,000 per month recorded a 28% rise in new lease agreements compared to the prior quarter. Analysts attribute the trend to a confluence of factors, including low inventory, rising interest rates affecting mortgage affordability in the broader region, and speculation around future zoning shifts under the new administration. The impact extends beyond residential leases. Commercial real estate in Manhattan experienced a ripple effect, with Class A office space in Midtown reporting a 9% increase in asking rents, and co-working providers seeing a 22% uptick in premium membership sign-ups. Tenants across sectors, particularly tech firms and financial institutions, are reevaluating long-term office commitments amid the broader housing inflation trend. Market participants are closely monitoring the incoming administration’s policy agenda. While no public announcements have been made on housing reform, indicators suggest that proposed rezoning initiatives in Harlem and the West Side could further influence supply and demand dynamics in the coming quarters. Investors are adjusting portfolios accordingly, with real estate investment trusts focused on New York City assets posting a 5.7% gain in value over the past month.