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Jonathan Miller reports Manhattan luxury rents reach all-time highs as wealthy residents choose to rent over buying

Manhattan median rents reached an all-time high of $5,000 a month in July. The average rent in the area jumped 15% compared to the previous year, reaching $6,306. This growth is primarily driven by wealthy renters who possess the cash to purchase property but are choosing to rent due to a record low supply of high-end properties for sale. Luxury rentals, which represent the top 10% of the market, saw a 35% increase in the average price over the past year, reaching $17,464 a month. These high-end properties are now fetching an average of $121 per square foot. Brokers note that a new pied-a-terre tax on high-value second homes has also influenced the prospective purchasers to choose flexibility over ownership. Additionally, a growing base of high-earning technology employees in New York has contributed to the surge. The number of apartments renting for more than $50,000 a month has more than doubled compared to 2025, while those renting for more than $100,000 a month have increased sevenfold.

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