A strong economy coupled with high mortgage rates pushed New York City rents to a new all-time high for the month of February.

In Manhattan, the median rent hit $4,230, 3% higher than the $4,095 median rent recorded in February of last year. In Brooklyn, the median rent was $3,499, also 3% higher than last February, according to a report by Douglas Elliman and Miller Samuel.

“It’s a departure from the narrative of the last six, seven months of declining rents,” Jonathan Miller, CEO of Miller Samuel and author of the report, told Bisnow.

In Northwest Queens, rent was flat compared to last year at $3,239, but the area signed a record number of leases, as the borough has caught the eye of Manhattan and Brooklyn residents and multifamily developers. In February, 591 new leases were signed in the area, 18% more than the previous year.

The new records were for the month, not overall. However, Manhattan’s median February rent was less than $200 below Manhattan’s all-time high of $4,400 set last summer. Summer months typically see a surge in residents moving.

Mortgage rates ticked back up last month and, as a result, have continued to push would-be buyers to rent. The average 30-year mortgage rate is 6.88%, up from 6.62% at the start of the year, according to Freddie Mac data.

New lease signings were up 7.7% year-over-year in Manhattan and 62.2% in Brooklyn. Available inventory is also up across the board. Nearly 8,000 units are on the market in Manhattan, up 33.1% from February 2023.

At the same time, the economy beat expectations in February, adding 275,000 jobs, indicating more spending ability despite inflation surrounding housing costs.

Although interest rates are expected to fall later this year, the presidential election doesn’t help pull buyers off the sidelines, Miller said. Landlords are aware of the dynamic, even with more competition: The share of leases with concessions signed in Manhattan dropped to 13%, down from 16% in January and 14.2% last year.

“The party, the candidate doesn't matter, at least in New York City for my metrics. But people slow down, they pause,” Miller said. “You’ll have a purchase market slowing down and the rental market unfazed.”