Midtown Exodus: The Grass Is Greener in the Outer-Boroughs
Tenants are leaving Midtown Manhattan, drawn by cheaper rents, more space, and better amenities in Brooklyn and Queens, despite a new law aimed at controlling the city's spiraling rent costs was passed earlier this year.
Lease signings in Queens hit a record high in May 2024, increasing 113.4% from the previous year. Brooklyn also saw a 160.9% jump, according to a Douglas Elliman report. The average rent in Manhattan slipped by 1.2% as of August 2024, while overall rents dipped by just 0.5%.
For those working in midtown buildings, the outgoing trend is highly noticeable.
“Five people moved out this September, and one more is moving next month,” said Seth Chaikin, a doorman at The Greywood, a luxury building near Herald Square.
Management is largely absent, Seth added, leaving unresolved issues like a rodent infestation and half the security team quitting. According to the Who Owns What database by JustFix, the building’s owner is Fred Obehshalom, who was called a slumlord by The New York Post.
However, the building’s leasing agent remains optimistic. “Thank God the rent has cooled down,” said Gabriela Flores from Platinum Properties, “more units are going into contract now.”
Politicians have sought to curb rapid rent hikes in an effort to tackle New York City’s broader affordability crisis. Governor Kathy Hochul passed the Good Cause Eviction Law in April to make housing more affordable, targeting rent-stabilized and free-market units. But some believe it still favors landlords. Charlar Acar, a real estate agent at Leven with decades of experience in Midtown, warns the law could allow rent hikes up to 10%.
Despite the new law, landlords continue to wield influence in pricing. “Landlords don't mind leaving apartments vacant if it makes financial sense,” Acar said.
“The law wasn’t everything tenants wanted,” said Robert Languedoc, a lawyer representing renters. “You can’t always hold landlords accountable.”
With Midtown losing its appeal, more people are moving to neighborhoods like Greenpoint, Williamsburg, and Long Island City.
Leilani Tiara Hambali, who works remotely at a biotech venture capital firm, moved out of Midtown with her boyfriend into a spacious, luxury building in Long Island City with golf simulators, a pool, and a basketball court. “This is our third year in New York. The novelty has worn off. You just want more space,” Leilani said. Now, instead of paying $6,000 to share a two-bedroom apartment with another couple, they have the apartment to themselves for $2,900. Plus, it’s rent-stabilized.
Experts are split on why so many people are moving out of Midtown. High rents, tight space and neglectful management have all been well-discussed topics on the subject. Data has yet to solve the mystery once and for all.
Leilani is only one of many in this exodus to the outer boroughs, hinting at a shift that could reshape Midtown’s rental market. “Unless it’s a really good price,” she said, “I won’t move back anytime soon.”
Photo: AP Photo/Mark Lennihan