• A new report found that the median rent for a Manhattan apartment is $5,000 a month and climbing.
• Inventory has fallen as New Yorkers can't afford to move.
• Mayor Zohran Mamdani has pledged 200,000 new homes in NYC, but it's a lofty goal.

Renting a New York City apartment isn't for the weak.

The median Manhattan rental price for a market-rate apartment soared to $5,000 in July — up 3% from June and 6% from July 2025 — an August 13 report from The Real Deal and appraisal firm Samuel Miller found.

The record-high rent comes alongside a staggering drop in public market listings. Apartment inventory in the borough has dropped by roughly 4,000 units, or 39% year-over-year, as homes are spending far fewer days on the market and people are signing leases with fewer discounts off the asking price.

Last summer, rentals spent an average of 48 days on the market. This summer, it's 36. Shorter duration on the market is typically an indicator of tighter supply and higher demand, as aspiring renters snap up open units more quickly.

Finding housing in the city has long been a challenge. Business Insider has heard from single moms who moved in together to cut costs, side hustlers struggling to make ends meet, and retirees worried they can't pay to age in the city.

The majority of New Yorkers spend more than 30% of their income on rent, the threshold economists classify as unaffordable.

Prices are jumping as inventory drops

The rental market trends are largely in line with America's broader housing market. A 2026 report from the Harvard Joint Center on Housing Studies found that the US has a significant shortage of affordable homes and that rents are rising. Even so, vacancies for both expensive rentals and single-family homes have increased, as many families can't afford to move. This kind of market stagnation is also reflected in NYC, as the Real Deal report showed the number of new leases dropped by 19%.

The Real Deal report also found that, in Manhattan, prices are rising fastest for apartments with two or more bedrooms. The year-over-year median price for "luxury" units — those in the top 10% of the market — has jumped 31% year over year to $13,750 a month.

Downtown neighborhoods have the steepest prices, followed by the West Side, East Side, and Northern Manhattan. Listing inventory across all areas, however, has dropped about 40% in the last year.

To address the housing affordability crisis, Mayor Zohran Mamdani launched his "Block by Block" plan, which aims to build 200,000 affordable homes during his tenure. Business Insider has covered city efforts to convert historic hotels into apartments, construct low-cost senior housing, and repurpose libraries, office buildings, and city-owned property for homes. Increasing supply could help lower prices in the long-run.

The city and state have pledged billions of dollars to these housing initiatives and are also leaning on support from nonprofits, developers, and big banks to foot the bill.

The Real Deal report only captures market-rate units, not rent-stabilized apartments, which make up 44% of Manhattan's housing. Mamdani's rent freeze — one of his top campaign promises — takes effect this fall and will cap rents on those rent-stabilized apartments for one- and two-year leases. While rent freezes can help alleviate costs for (often high-earning) residents in the short term, the policy can cause market-rate costs to increase. A rent freeze under former Mayor Bill de Blasio lapsed for this reason.

• NYC Mayor Mamdani wants to build 200,000 new homes.
• Some of these new housing projects will be on land the city already owns.
• An economist told Business Insider that the plan may face funding hurdles, but would boost supply.

Zohran Mamdani is making a big bet on turning city-owned property into affordable housing.

The New York City mayor plans to oversee the construction of 200,000 affordable homes across the five boroughs. It's a significant undertaking that will require new builds, hotel and office building conversions, and widespread rezoning.

To control costs and limit red tape, the Mamdani administration is encouraging new development on existing public land, like converting libraries into mixed-use buildings or building on unused parking lots. If successful, a supply boom could help lower-income New Yorkers access housing and put downward pressure on overall prices.

The administration's goal is to identify public sites to support at least 25,000 new affordable housing units over 10 years. Ten projects — which are likely to yield a few thousand apartments — are currently in planning and development stages.

Building on city-owned property is "not a silver bullet," said Jake Krimmel, senior economist at Realtor.com. But it's one lever City Hall can pull.

City-owned land could be a piece of the affordable housing puzzle

A majority of New Yorkers spend more than 30% of their income on housing, the threshold economists define as unaffordable. Business Insider has heard from single moms who moved in together to save on rent, parents who are making just above the threshold for benefits, and six-figure earners struggling to make ends meet.

The city owns and leases a staggering amount of land, but not all of it is suitable for housing. "A lot of the city-owned land is not necessarily the easiest thing to build on because of zoning rules or parcel sizes and shapes," Krimmel said.

An analysis by the New York University Furman Center found that about 10,000 of the 15,000 plots in NYC's portfolio are currently zoned for residential use. A third of city-owned lots are overseen by the Department of Parks and Recreation, suggesting they may already be in use as parks, open public spaces, or sports facilities.

Buildable space is also a consideration. Krimmel said a very limited number of vacant lots in the city clear both the size and zoning bar for housing. That means the city will need to get creative with existing developments; Krimmel suggests stacking housing on top of civic buildings where possible.

He added that a public land construction push won't solve all of NYC's housing woes, but "if you're trying to make good policies, you need to leave no stone unturned." The city turning to existing public land is a great idea, he said, though selling it to developers for affordable housing use could be another financially-smart option.

"The city has valuable assets on its books," Krimmel said. "The question is whether it deploys them by building itself or whether it attaches affordability requirements, upzones, and lets other developers carry the financing and operations."

To reach its goal of 200,000 new affordable units, the Mamdani administration will also need support and resources from City Council, Albany, private developers, and taxpayers. As my colleague Juliana Kaplan reported, part of the reason New York is so expensive is it's a desirable place to live — which is unlikely to change anytime soon.

The Mayor's Office hopes its proposed rent freeze, universal 2-K childcare program, fast and free bus pitch, and other affordability initiatives will help lower New Yorkers' cost of living in the meantime. These initiatives go hand-in-hand with housing access, the mayor said.

As he told a crowd in Queens last month: "We will no longer speak in the language of promise. We will speak in the language of the present. We will build more homes."

• NYC City Hall released its detailed plans for affordable housing.
• Mamdani is supporting new construction, apartment-friendly zoning, homebuyer assistance, and more.
• The mayor hopes the plan will help lower- and middle-income New Yorkers.

Zohran Mamdani has ambitious ideas for New York City housing.

The Mayor's Office dropped its detailed policy plan — called "Block by Block" — on May 26, outlining goals to build more apartment buildings, convert unused offices and hotels into living space, and help residents navigate one of America's most expensive housing markets. Housing access has been a cornerstone of Mamdani's affordability agenda, with buzzy promises to freeze the rent for a large swathe of NYC apartments and address "bad landlords."

"When New Yorkers can afford a home, they can afford to dream," Mamdani said at a press conference Tuesday morning.

From construction to creative living solutions, here are Business Insider's biggest takeaways from City Hall's plan.

Boosting building opportunities

New York needs to build, baby, build. Vacancy rates hovering at historic lows are one of the biggest factors pushing up rents in the city, and Mamdani's blueprint lays out a slew of measures that aim to both reduce the costs of building and get more stock online.

Part of the plan is to simply build more housing, with a goal of 200,000 more homes in the next ten years. That's underwritten by $2.5 billion allocated towards more building from the mayor's budget, with the homes built subject to regulations that bolster construction workers' pay and benefits.

City Hall also wants to build more on public sites like Sunnyside Yards, a rail hub in Queens that sits between several bustling neighborhoods. That proposal would connect the neighborhoods currently separated by rail tracks, and build a deck over the rail infrastructure that could house what the report calls "a new complete neighborhood." The report also notes that the city would need federal support to build that new neighborhood — part of Mamdani's pitch to Queens native Donald Trump in early 2026.

Some proposals hinge on existing (and future) buildings. One is a program that would lower insurance costs for affordable and rent-stabilized units, which have seen soaring premiums. The plan says it would infuse $100 million to help fund a newer, more affordable insurance program, with a goal of both keeping costs more stable for current housing and saving the city money on new builds, since it currently has to subsidize those higher insurance prices.

Other aspects of the plan include expanding access to a water affordability benefit for those in affordable housing, and expanding a program that helps rental buildings and income-restricted co-ops improve their energy efficiency. The plan also aims to improve elevator service in public housing, and address leaks and plumbing issues in those units.

Supporting creative housing solutions

Through partnerships with developers and revised zoning policies, the mayor plans to convert some existing commercial buildings into apartments. The city said the recent overturning of a decades-old state cap on new developments would allow more NYC buildings to be allocated toward housing.

Both the local and state governments are working to convert the historic, and currently vacant, Stewart Hotel in midtown Manhattan into permanent housing for 550 households. Roughly half the units will be dedicated to providing affordable options for formerly-homeless and low-income households, per the plan. Some of the buildings' square footage will also be dedicated to providing on-site social services for tenants.

A largely vacant commercial skyscraper on Brooklyn's Flatbush Avenue received zoning approval in March. The building, which is on city-owned land, will be converted into 1,200 apartments, 350 of which will be "deeply affordable." Former private office building 100 Gold Street — which currently houses various city agencies in lower Manhattan — will also be converted into 3,700 apartments, 900 of which will be permanently-affordable homes.

The city also said it is trying to make it easier for New Yorkers to build accessory dwelling units (ADUs) on their property. That includes a program to help residents navigate their hyper-local zoning laws for ADUs, especially in historic districts. The city plans to streamline permitting for manufactured ADUs, which are significantly cheaper than custom-built units, making them easier for property owners to install for use by renters, elderly family members, or guests.

Beyond building more housing, Mamdani plans to begin a pilot this year to legalize basement apartments in the city. This will make it easier for homeowners to ensure their basements are up to code and can be made into safe apartment units. Homeowners who participate in the pilot this year will receive some financial support from the city to install smoke alarms, test for contaminants, and more.

Helping New Yorkers navigate the housing market

NYC is notorious for its cutthroat housing market, and renters make up 70% of city residents.

The Mamdani administration said it is taking steps to curb "bad landlords" by strengthening code enforcement and taking action against property owners who harass or neglect their tenants. The city is already hosting "rental ripoff" hearings in all five boroughs so that New Yorkers can share their concerns directly with City Hall, and the mayor said he is strengthening legal avenues for tenants to expedite emergency repairs. Mamdani also said he supports the development of tenant unions, which help renters collectively protect their rights. This goes alongside plans to reduce evictions and speed up cases in housing court.

City Hall wants to make New York more affordable for buyers, too. Mamdani is set to expand an existing downpayment assistance program to serve up to 300 lower-income first-time homebuyers. A new mortgage assistance program will provide repayable, no-interest loans to help low-income homeowners resolve mortgage problems.

The mayor added that he is moving forward on plans to freeze the rent in NYC's rent-stabilized apartments alongside City Council, but the policy has not yet been implemented.

The success of a rent freeze — alongside many of the other programs in the city's housing plan — will hinge on legislative support and funding at the local, state, and, sometimes, federal levels. Still, the mayor is feeling confident.

"Combined, these efforts will lead to growth beyond anything New Yorkers have seen in generations," Mamdani said. "For some, the dream of home ownership will finally be within reach. Others will be able to sleep easily in homes they no longer fear losing."

• Seven years ago, Matthijs van der Ham won a lottery to rent a tiny home in the Netherlands.
• One of the main reasons van der Ham has stayed is the village feels safe for his 13-year-old son.
• Instead of complaining about noise, his neighbors turned his son's birthday party into a mini festival.

This as-told-to essay is based on a conversation with Matthijs van der Ham, 44, an architect and woodworker. For seven years, he and his 13-year-old son have lived in Minitopia,'s-Hertogenbosch, the Netherlands. This piece has been edited for length and clarity.

Seven years ago, when our landlord told me the apartment on a farm where I lived with my seven-year-old son was coming off the rental market, I needed to find somewhere else to live.

Around the same time, a tiny house became available at a Minitopia village in 's-Hertogenbosch, the first of several in the region. I was already familiar with this particular village because, earlier that year, I'd helped a friend build a home there.

The Minitopia Foundation held a lottery for the rental and hundreds of people applied. With a bit of luck, I won. Within three weeks of losing our apartment, I had the keys to our tiny house in 's-Hertogenbosch.

Living in a tiny-home village has been liberating

When I first moved here in 2019, it was common for tour groups to walk through the site and for drones to fly overhead to film life here. That's less common now. There are many more projects like this around the world, and tiny homes are becoming increasingly normal.

Back then, the site was mostly concrete. Over the course of my time here, however, it has become much greener. Every year, I plant trees along the street and invite the neighbors to join. They often do. On a typical street, the local government would probably remove trees like that or make you go through a long approval process. Here, if I want to plant trees, I can.

In my spare time, I like to create art from wood. On a normal residential street, if someone saw a man walking around with an ax, they might call the police. Here, people ask what I'm making and tell me how nice my art is.

In a place like Minitopia, the entire street feels like your living space, unlike in normal neighborhoods where everything is clearly defined: fenced gardens, parking spaces, a road, a pavement.

Here, there are no fences and no strict boundaries. It's much more fluid. When you live in a space that is less rigid, it becomes easier to think that way, too. Living like this has been liberating, and I feel freer than I used to.

Minitopia is a fantastic community for raising children

I've always been happy here, especially when it comes to raising my son. It's a great place for kids to grow up. It feels safe, and there aren't many cars passing through.

My son is always strolling around outside before returning at a set time. It's really nice that children have the opportunity to explore here. That's one of the main reasons I've stayed.

Another reason is that the people are really great. A few years ago, I threw a party for my son's birthday. At first, I only invited his classmates. Then we ended up inviting their families and everyone at Minitopia. There are more than two dozen homes here.

It turned into a small festival. We had a food truck, music, and neighbors lending chairs and helping out. In a normal neighborhood, we'd have received noise complaints, but at Minitopia, everyone just wants to have fun.

We do a lot together as a community, which is special. Every Tuesday, we have a get-together where we make art, eat, and talk. On New Year's Eve, we had a big party.

You can keep to yourself if you like, but I love that there are so many opportunities to do fun things together.

I've never been tempted to move

Though I rent this house, it feels like my home. I handle most of the maintenance, and I'm free to change it as I see fit. For example, I've made some improvements, such as adding a roof over the porch.

While my dream is to one day live on a piece of land with better soil so I can garden more, at this point in my life, living in a tiny home village works well for us.

In my seven years here, I've never once been tempted to leave.

• Developer Chad Dale and a small group of his friends bought a vacation home to share together.
• Ultimately, the experiment was a bust, but it sparked the idea for something bigger.
• In 2023, Dale, his family, and friends opened Shared Roof, a 35-unit co-housing community in Seattle.

Nearly a decade ago, real estate developer Chad Dale made a purchase that changed the way he thought about how people live together.

Dale and a small group of his friends had decided to pool their money to purchase a vacation home on Whidbey Island, about an hour from Seattle. With five families with young children cycling in and out of the four-bedroom, one-bath farmhouse sharing meals, splitting chores, and weathering the inevitable frictions of living in close quarters, Dale realized that sharing property was a great idea in theory, but not sustainable in practice.

"There were a lot of people sharing an intimate space — it was a little too intimate," Dale told Business Insider. "There were lots [of things] about that place that were great, and lots that weren't great."

The vacation home experiment's shortcomings sparked an idea for something bigger and more permanent.

For years, Dale turned over the same question: What would communal living look like if it were designed to last?

He found his answer in co-housing, an arrangement where people have private homes but share amenities and collectively manage common spaces. Not to be confused with co-living, which is when people have private rooms in shared homes, co-housing is unlike a typical rental setup in that residents also often have an ownership stake or governance role in the housing community. It's a housing model that is gaining traction as people seek more sustainable, community-oriented housing.

An 'adult version' of a co-op community

Dale is the developer behind Shared Roof, a 35-unit community that opened in 2023 in Seattle's Phinney Ridge neighborhood.

Dale financed the project with the help of 13 other friends and family members, each of whom invested in the building. Contributions ranged from $50,000 to $5 million, and ownership stakes in the building's LLC are proportional to each person's investment. At Shared Roof, there are no HOA fees; residents still pay monthly rent, but it goes directly to the LLC rather than a traditional landlord.

"It's a business model that you see sometimes in office buildings, but I'd never seen one done in a mixed-use building," said Ray Johnston, who helped lead the project as a founding partner of Johnston Architects. "The things that Chad and his friends came to the table with were exciting."

Designing the building took careful planning

Shared Roof is meant to feel more like a European block than a typical new build in Seattle. Dale points to places like Amsterdam, where design encourages neighborly interaction and sustainability, as sources of architectural inspiration.

The five-story building wraps around an interior courtyard, with underground parking below. No two units are alike; residences range from about 2,000 to 5,000 square feet.

"One of the more interesting challenges in the project came on the fourth and fifth floors, where many of the long-term investors live, and the units were highly customized to serve the needs of different families," Johnston said. "It required thoughtful, more detailed spatial planning than in typical multifamily projects to make those individualized layouts fit together under one roof, but it also presented an opportunity to create spaces that reflected how the residents wanted to live."

While residents have private homes, they share a suite of amenities, including a library, an art room, and a rooftop greenhouse. Street-level retail — such as a café, a brewery, and several restaurants — help keep the community connected to the surrounding neighborhood.

For Dale, co-housing was a way to get the community and amenities he and his friends craved without paying peak city prices or having to move away entirely.

Still, living at Shared Roof isn't cheap. Some larger units in the building have a monthly rent of $8,000. To ensure affordability, Shared Roof participates in Seattle's Multifamily Tax Exemption program (MFTE) and has set aside about 20% of units for moderate-income renters.

"It was incredibly important for us to have as much diversity — including income diversity — in the building as we could," Dale said. "We're huge supporters of infill diversity, rather than separate diversity. In my opinion, that's not the correct approach."

It's a multi-generational building

Nine of Shared Roof's investors live in the building, including Dale, who lives with his wife and their three kids in a 1,800-square-foot, three-bedroom unit.

Dale views being surrounded by a mix of younger couples and older residents as a unique plus to their living arrangement.

"There are groups of people that benefit from being together, and our model was really about a generational, family-oriented approach," he said.

"My folks and my wife's folks are all in Michigan, so my kids didn't get a lot of interaction with older people. To see my neighbor with Parkinson's interacting with my 7-year-old — they're both winning."

The kids also have plenty of other children their age in the building, and with so much to do there, from hanging out on the rooftop trampoline to playing on the 5,000-square-foot turf soccer field, hangouts are often — sometimes more than parents would prefer.

"They come home, crack the door, toss their school bag inside, and then leave because all their friends are around," Dale said. He added that "while that's really cool, and exactly what I was hoping for, it's an unintended consequence."

'I love our life here'

John Ware, a technical program manager, and his partner, Liesl Langley, had been living in a large home in Phinney Ridge, but were looking to downsize as they entered the empty-nest years. After hearing about Shared Roof through word of mouth and touring the building, they were sold.

Ware and Langley are investors in the building and were among the first couples to move in. They're in a 2,000-square-foot apartment with three bedrooms and 2.5 baths. Inside, it's finished with hardwood floors, walnut custom cabinetry, and high-end appliances, including a Liebherr refrigerator.

Fancy finishes aside, Ware said one of the biggest draws to living at Shared Roof is the community he and Langley have become a part of.

"I used to live in a building that had about 90 units, and I probably knew a third of folks, but we know every single person who lives in this building. We have a group chat on WhatsApp, so that folks can stay in touch with what's happening," Ware, 54, told Business Insider.

He and his partner have become the building's unofficial — and, in practice, official — social directors. Every year, they host an Oscars party, and in the weeks leading up to it this month, they've been holding a movie night every week.

Ware said it's little things like this that make co-housing worthwhile.

"We travel here and there, but after we've traveled for a while, I just want to be home, because of where we live — not just Seattle, but our neighborhood and community," he added. "I love our life here and love this place."

For some residents, co-housing is a lifeline in a pricey city

Mary Jo Wagner, a spa owner, fell in love with Shared Roof after visiting a client who lived there.

"I had just come to visit her one day for dinner, downstairs at one of the restaurants, and I was just thinking to myself how amazing it would be to live in a community like this," Wagner, 53, told Business Insider.

Wagner moved in with her adult son in 2024, but he has since moved out. Over the past year, she downsized from a two-bedroom to a one-bedroom unit with her dog. Her apartment is among the roughly 20% of units set aside in the building for moderate-income earners.

"The median income in the city is so incredibly high, so it drives up all the prices of the regular rental units that are available," Wagner said. "The fact that Shared Roof participates in this MFTE program is absolutely amazing because it is more affordable."

Wagner said the building's amenities, along with its retail stores, including a wine shop and a bakery, also helped seal the deal. She especially loves the building's library and the rooftop garden.

"I live in a small one-bedroom unit, but if I want to have my friends or family over for a larger gathering, there are spaces in the building to do that, which is just amazing."

For Wagner, Shared Roof doesn't feel like a typical apartment complex. Beyond the extra amenities, the connections she's made there feel genuine.

"Everybody kind of looks out for one another," she said. "It feels a little bit like being a part of a large family."