New York City real estate markets see record residential rents and office recovery

New York City residential rents reached record highs in the third quarter of 2026, according to data from Realtor.com. The median asking rent rose to $3,785 per month, marking a 4.5 percent year-over-year increase and the highest level since data collection began in 2019. Manhattan recorded the largest increase at 8.3 percent, while Brooklyn, Queens, and the Bronx also saw significant growth.

In the commercial sector, Manhattan office rents have returned to pre-pandemic levels. Average asking rents reached $79.47 per square foot in October, a 5.7 percent increase year-over-year. This recovery is supported by high leasing volumes, including a 1.05 million-square-foot lease by Citadel at 350 Park Avenue.

Meanwhile, property owners in the multifamily housing sector are facing rising expenses driven by high insurance costs. A report from Enterprise Community Partners suggests that third-party litigation financing may be contributing to increased insurance claims in New York, with some affordable housing operators reporting average claims in the state that are five times higher than in other regions.