Shake-Up in Rentals, Slowdown in Sales

This week, eyes are on the NYC rental market, where the early impact of the newly implemented FARE Act is becoming impossible to ignore. The law, which went into effect on June 11, was intended to ease the financial burden on renters by requiring landlords to pay their broker’s fee. But just ten days in, the results are proving far more complex.

In Manhattan, the publicly listed rental inventory has dropped dramatically, down 53% since the law went into effect. That’s the steepest two-week decline on record. Many landlords are pulling listings from public sites, limiting visibility for renters and shrinking the pool of publicly available apartments. At the same time, asking rents are climbing. According to data from UrbanDigs, in the 10 days leading up to the FARE Act, the median asking rent for new Manhattan listings was $4,750. In the 10 days after, that number jumped to $5,300—a staggering 11.5% increase. Brooklyn saw a similar, though slightly more modest, jump from $4,075 to $4,238, a 6.2% rise.

It’s still too early to say whether these rent hikes are a short-term reaction or the beginning of a new pricing trend, but one thing is clear: the market has responded swiftly. What was meant to make renting in NYC more affordable may be making it more expensive and harder to navigate, particularly for renters unfamiliar with the city. With fewer listings available online and rents on the rise, the value of working with a tenant’s agent may now be greater than ever.

On the sales side, a seasonal summer slowdown may be unfolding. In Manhattan, inventory dipped 1% to 7,254 active listings, with new listings down 8% from last week. Brooklyn held steady at 3,543 active listings, but fresh inventory is thinning, with just 183 new homes coming to market—an 11% weekly drop.

The Elegran NYC Consumer Sentiment Index dipped from +43 to +3 this week as buyer activity cooled in both boroughs. Manhattan saw 216 contracts signed, down 12% week-over-week and 4% below last year. Brooklyn recorded just 124 contracts—a 32% weekly drop and 5% below 2024 levels. It’s a familiar summer rhythm: fewer listings, slower pace, and buyers becoming more selective in the face of high prices and interest rates.

While the sales market moves with seasonal predictability, the rental market faces a more abrupt shift, reshaping the experience for renters citywide.

Manhattan Supply

For the third week in a row, Manhattan’s housing supply shrank. Active listings fell another 1% to 7,254 homes, while only 303 new properties hit the market, down 8% from last week, though still slightly above this time last year.

This summer dip is typical, as traditionally, fewer homes are listed in the summer.  Properties begin to come on the market in larger quantities immediately following Labor Day. In the meantime, fewer listings can mean more competition amongst buyers, especially in high-demand areas. For sellers, this lower-inventory moment creates an opportunity to stand out, as long as pricing is on point.

Brooklyn Supply

Brooklyn’s housing supply held steady this week at 3,543 active listings, but fresh options are getting harder to find. Only 183 new homes hit the market, an 11% drop from last week, even though that’s still slightly ahead of last year.

With supply flat and buyer activity slowing, the market is entering a quieter summer stretch, where well-priced homes can still stand out, but options may, temporarily, feel more limited. 

 

Manhattan Pending Sales: Pending sales increased by 2.2% to 3,471. 

Brooklyn Pending Sales: Pending sales increased by 2.5% to 2,248.

Manhattan Consumer Sentiment

Manhattan buyer activity cooled this week, causing the Elegran Manhattan Consumer Sentiment Index to drop from +1 to -14 as 216 contracts were signed, down 12% from last week and 4% below the same week last year.

This marks only the fourth time in the last 16 weeks that contract activity has fallen behind last year. It’s too early to call it a trend, but we’ll watch closely to see if summer demand stays on track—or if buyers begin to pull back.

Brooklyn Consumer Sentiment

Brooklyn experienced the sharpest slowdown this week. The Elegran Brooklyn Consumer Sentiment Index fell from +124 to +48—its lowest level in four months—as only 124 contracts were signed, marking a 32% drop from last week and 5% below the same time last year.

Unlike Manhattan, Brooklyn has lagged behind last year’s pace in 11 of the last 16 weeks, suggesting buyer momentum is cooling. After years of leading the city in contract activity, the borough may feel the effects of rising prices, persistently high interest rates, and macroeconomic uncertainty. 

New Development Insights 

Marketproof reported that 33 new development contracts were signed in 25 buildings this week. The following buildings were the top-selling new developments of the week:

• Nusun Vernon (Astoria) signed 4 contracts

• Eastlight (Kips Bay), Hxh Residences (West Chelsea), 720 West End Ave (Upper West Side), The Slope on Fifth (Park Slope), and The Austin (Forest Hills) - each signed 3 contracts.

 

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If you would like to chat about the most recent market activity,

feel free to contact us at info@elegran.com or 

connect with one of our Advisors.

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