December was not gloomy for residential rentals, with rents in Manhattan up 8.4 percent year-over-year, according to MNS’ most recent rental market report released today.
As The Real Deal has previously reported, Manhattan rents generally decrease and the vacancy rate rises after October, though this year that seasonal dip has been very small.While rents in Manhattan dropped 1 percent in December, absorption was strong, and it’s still a landlord’s market, the report says.
The Upper West Side saw an overall rent decrease of 2.4 percent in December compared with November, while the Financial District saw a 1.7 percent drop, based on increased inventory. As a result, concessions are returning to the FiDi market, the report says. The largest drop since November was for non-doorman studios in Murray Hill, where rents were down 8.8 percent.
Rents went up in the East Village by 4.2 percent, and in Chelsea and Battery Park City by less than 1 percent.
Based on the changes in the market, MNS advised studio-seekers to “run don’t walk” to Murray Hill, and to renew in the Soho area, where rents have increased only 2 percent in the last year (compared with 8.4 in Manhattan overall).
Meanwhile, in Brooklyn, there were widespread rent drops month-over-month, although the report says changes were not stark as in Manhattan.
The largest increase was in the Clinton Hill neighborhood, where individual rentals inside condo projects were leasing for an average of 10 percent more than other rentals on the market in the neighborhood, according to the report.
There have been decreases in rents this month in a number of Brooklyn markets, such as Greenpoint (where studios were down 5.7 percent), Brooklyn Heights (where one-bedrooms were down 4.9 percent) and Boerum Hill, where an overall decrease of 2.4 percent since November was the most dramatic overall slide in the borough. Overall, however, two-bedrooms in Brooklyn increased in average price this month by 2 percent from the previous month. — Guelda Voien