Manhattan median rent falls below $3,000 for the first time in nearly a decade

Dawn breaks over Manhattan as the city struggles to contain the number of coronavirus cases on March 18, 2020 in New York City.
Photo credit Spencer Platt/Getty Images

NEW YORK (1010 WINS) -- The median asking rent for Manhattan apartments has dropped below $3,000 for the first time in nearly 10 years as the pandemic continues to impact the real estate market.

The median monthly rent fell to $2,990 in the third quarter of 2020, a drop of 7.8%, according to a new report from StreetEasy.

It’s the first time the figure has been below $3,000 since 2011 and comes as landlords have been slashing rents to attract tenants amid the pandemic.

According to StreetEasy, the share of its Manhattan rental listings that were discounted rose to a record high of 44.7% in the third quarter.

The discounted rents came as rental inventory also increased. In Manhattan, inventory was up 69.8%. There were 72,267 listing during the third quarter, nearly 30,000 more than in 2019.

"Renters are no longer willing to pay the commute premium of living in Manhattan when they do not need to commute to an office five days a week," StreetEasy economist Nancy Wu said in the report.

"Landlords across the city, but particularly in Manhattan, have to be willing to face some really hard hits if they want to fill their units. They're being forced to cut the location premium out of their asking price in order to compete with larger and more affordable apartments in the outer boroughs,” Wu said.