Manhattan rental prices reached a new peak in May, with the median monthly rent climbing to $5,125, representing a 7% increase compared to the same period last year. This upward trend continued through June, with median rents rising an additional 1% from April, according to data from the Corcoran Group real estate firm.

The surge in rents comes amid a tightening market characterized by dwindling inventory and steady demand. Listings in Manhattan dropped significantly in May, with a 21% decline compared to April, marking the fourth consecutive month of double-digit decreases in available apartments. This contraction in supply has intensified competition among renters, particularly for studios and one-bedroom units, driving prices to new heights across multiple categories.

Gary Malin, CEO of Corcoran Group, highlighted the growing imbalance, noting that demand continues to outpace a persistently constrained supply environment. He emphasized that this dynamic has resulted in record-high rents, especially in smaller units, as tenants face an increasingly limited selection of available apartments.

The impact of the supply shortage was evident across different building types. No-doorman buildings recorded new peaks in both median and average rents, reaching $4,496 and $5,710 per month, respectively, in May. Meanwhile, buildings with doormen saw a median rent of $5,333.

Brooklyn also experienced significant rent increases, with the median rent in that borough hitting $4,347 in May. The upward pressure on rental prices in the city’s outer boroughs reflects a broader trend of strong demand amid limited housing options.

Overall, the Manhattan rental market appears unlikely to cool in the near term, as supply constraints and sustained tenant demand continue to push prices higher.