A version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future editions, straight to your inbox.

A surge in wealthy renters is driving Manhattan rents to new records, according to brokers.

Median rents in Manhattan reached an all-time high of $5,000 a month in July, according to the Real Deal Report, authored by Jonathan Miller, director of markets for Street Matrix. The average rent jumped 15% compared with a year ago, to $6,306.

Wealthy renters are driving most of the growth. The average price for luxury rentals — the top 10% of the market — jumped 35% over the past year, to $17,464 a month, according to the Real Deal Report. Luxury rentals are now fetching an average of $121 per square foot.

Typically, renters are those who can’t yet afford to buy. In today’s market, ultra-wealthy New Yorkers who have plenty of cash to buy are choosing to rent. A record low supply of high-end properties for sale has led many to wait in a rental until they find their dream home. Others are spooked by falling or flat prices for Manhattan resales, which make apartments less attractive as investments.

“These are people who can easily afford $20 million, $50 million trophy homes,” said Laura Klein of Bespoke Real Estate, who recently brokered a rental for a penthouse in Chelsea for $177,000 a month. “There is so little inventory. And they don’t want to compromise.”

Other brokers said New York’s new pied-a-terre tax on high-value second homes has caused many wealthy would-be buyers to rent instead.

“The sharp increase in rentals following the pied-a-terre tax announcement suggests that some prospective purchasers may already be choosing flexibility over ownership,” said Pam Liebman, president and CEO of The Corcoran Group.

The rush of wealthy New Yorkers into the rental market has created a new market for mega-rentals. The number of apartments renting for more than $50,000 a month so far this year has more than doubled compared with 2025, while the number renting for more than $100,000 a month is up sevenfold, according to The Real Deal.

Klein said none of the ultra-high-end rentals are publicly listed and are instead offered quietly to wealthy clients through a small network of high-end brokers. She currently has a rental for $175,000 a month in Tribeca, as well as one for $95,000 a month on the Upper East Side.

“The $100,000-a-month number is almost normal now,” Klein said. “These are renters who want turnkey, unique, trophy properties.”

She said owners of the luxury rentals don’t need the income but are opportunistic given demand.

“They say to me, ‘If the number is right, I’ll rent.’ These are properties that if they were on the market would be listed for tens of millions” of dollars, she said.