Manhattan rents hit all-time high: Here's what to know

Summary

CNBC's Robert Frank reports that Manhattan rents have hit a record, with median rent at $5,000 a month and average rent above $6,300. The high-end luxury segment is the biggest driver, with top 10% rents up 35% year over year and more six-figure monthly rentals appearing. Frank expects rents to keep rising because demand from tech and finance workers remains strong, supply is constrained by rent freezes and high building costs, and the pied-à-terre tax is pushing wealthy households to rent rather than buy.

• Manhattan median rent reached a record $5,000 per month, with average rent above $6,300.
• Top 10% luxury rents rose 35% year over year, with median luxury rent near $14,000 per month.
• At least seven apartments rented for over $100,000 per month this year, and units over $50,000 per month more than doubled.
• Demand is being driven by tech and finance workers, including AI-related hiring.
• Supply is constrained by rent freezes on about one million rent-stabilized Manhattan apartments and high construction/financing costs.
• The pied-à-terre tax is making wealthy households more likely to rent than buy second homes.
• Frank says everything he sees points to Manhattan rents moving higher.