New York City’s rental market remained remarkably strong in October, with rising rents and competitive bidding wars that contradict claims of an impending “exodus.” These rumors intensified in the run-up to the election of the city’s new socialist-leaning mayor Zhoran Mamdani, but market data tells a very different story at the moment. Sales activity also held firm, with third-quarter transactions 4.3% above the decade average.

While rents nationwide saw their fastest drop in 15 years, Manhattan, Brooklyn, and Queens recorded rent growth at twice the rate of inflation. Demand remains intense, highlighting the need ...