New York City Rent Hits Record High as Renters Face a Squeeze From Both Sides

Median asking rent reaches $3,785, up 4.5% year over year, while buying a typical home costs nearly $7,000 more per month and mortgage rates top 7%

AUSTIN, Texas, Oct. 27, 2026 /PRNewswire/ -- New York City renters are being squeezed from both sides as the median asking rent reached a record $3,785 in the third quarter, up $162, or 4.5%, from a year ago, while buying a median-priced home cost $6,952 more per month than renting. With mortgage rates above 7%, the estimated monthly cost of that same home would rise to about $11,008, according to the Realtor.com^® 2026 Q3 NYC Rental Report.

The city's median asking rent is now at its highest level since Realtor.com^® began tracking the data in the second quarter of 2019 and is $816, or 27.5%, above its pre-pandemic level. The affordability pressure is especially concentrated among smaller homes. The median asking rent for units with zero to two bedrooms rose 7.1% year over year to $3,662, while rent for units with three or more bedrooms rose 2.9% to $5,089.

"New York City renters are facing a difficult affordability equation: rents are rising, especially for the smaller homes many renters compete for, while the cost of buying remains dramatically higher," said Danielle Hale, chief economist at Realtor.com^®. "A modest decline in home prices brought some relief to the monthly cost of buying in the third quarter, but mortgage rates above 7% can quickly erase that progress. For renters hoping to save for a down payment, the squeeze is coming from both directions."

Rents Outpace Earnings for Many New Yorkers

While average hourly earnings for private-sector employees in New York City rose 4.2% year over year in August 2026, rent growth for zero- to two-bedroom units was substantially faster. Earnings growth also varied widely by industry. Average hourly earnings rose just 1% in manufacturing and were flat in private education and health services, while earnings fell year over year in the goods-producing industry and in mining, logging and construction.

For workers in those sectors, the city's 4.5% overall rent increase represents a loss of purchasing power. To afford a typical rental while following the 30% income guideline, households would need annual incomes of approximately $215,000 in Manhattan, $167,880 in Brooklyn, $149,760 in Queens and $129,320 in the Bronx.

All Four Boroughs Post Rent Increases

Rents increased year over year across all four boroughs in the third quarter. Manhattan led the city with an 8.3% increase to $5,375, followed by Brooklyn at 4.9% to $4,197, Queens at 3.9% to $3,744 and the Bronx at 2.7% to $3,233.

"New York City's rent growth is broad-based, but the sharpest increase is in the smaller-unit segment, where affordability-minded renters are competing for limited options," said Jiayi Xu, senior economist at Realtor.com^®. "At the same time, the cost of buying a typical home is nearly three times the cost of renting, and a mortgage rate above 7% would push that monthly cost even higher. That combination makes it harder for renters to build savings and move toward homeownership."

High Mortgage Rates Keep Homeownership Out of Reach

The estimated monthly cost of buying a median-priced home in New York City fell about 1%, or $107, year over year in the third quarter, to $10,737 as the median listing price declined 2% to $1,409,792. That decline outweighed a small increase in the average 30-year fixed mortgage rate, from 6.57% to 6.68%.

However, mortgage rates surpassed 7% in late September. At a 7% rate, the same home would cost about $11,008 per month—$164 more than a year earlier—more than offsetting the savings from lower home prices.

Methodology

To determine the monthly cost of buying a home in New York City, we find the median listing price for homes in New York City. As first-time homebuyers plan lower down payments, we assume a 10% down payment and use the 30-year fixed mortgage rate during the quarter to calculate a monthly mortgage payment. We also include estimated HOA fees, taxes, and homeowners insurance as part of the costs.

New York City rental data as of 2026Q3 for all units advertised for rent on Realtor.com^®. Rental units include apartments as well as private rentals (condos, townhomes, single-family homes). We use rental sources that reliably report data each month within New York City and each of its boroughs. To calculate the median asking rent for each quarter, we first obtain the median asking rent for each month within that quarter and then take the average of the three months. Data for Staten Island is currently under review.

About Realtor.com^®

For over 30 years, Realtor.com^® has connected buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 real estate site REALTOR® agents recommend, Realtor.com® delivers consumer connections and a robust suite of marketing tools to support business growth. Realtor.com^® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.

Media Contact: Mallory Micetich, press@realtor.com

SOURCE Realtor.com