Inertia: Manhattan resi rents stay static

Brooklyn and Queens rents saw spikes in May

New York /
Jun.June 09, 2016 07:41 AM

The number of rentals on the market in Manhattan surged last month, but prices in the borough continue to basically flatline.

Median residential rents hit $3,400 in May, up just 0.6 percent year-over-year and down 0.4 percent decrease from April, according to a new report released by Douglas Elliman. Meanwhile, listing inventory shot up to 6,718, a year-over-year increase of 21.2 percent.

For the past two years, rents in Manhattan have steadily grown. But that upward climb came to a halt in March, when median rents fell 2.8 percent to $3,300. Prices bounced back slightly in April, continuing what Jonathan Miller, author of the Elliman report, termed the borough’s “sideways” trajectory. The price growth in the borough can be primarily attributed to the entry-level to mid-tier rentals (whose median rents were $2,360 and $3,249, respectively), since supply of these properties is limited, Miller said.

The influx of new development is primarily made up of upper-tier and ultra-luxury rentals, markets that are softening. While in previous months the price jumps in the lower tiers and the decline in luxury prices yielded an overall rental increase, that is no longer the case.

“They don’t offset each other equally anymore,” Miller said. “The upper end of the market is soft and there’s more price growth in the balance, in the bottom 60 percent. That’s been the pattern.”

In Brooklyn, however, the tale was quite different. Median residential rents increased for the fifth month in a row, jumping to $2,874. This represented a 4.5 percent year-over-year increase and a 3.4 percent increase from April. The number of rentals on the market also saw a hefty increase. Listing inventory rose to 2,016, a 20.6 percent year-over-year increase. Most of the price growth is in the luxury rental sector, which saw a 2.1 percent year-over-year increase. The median rental price for new development, however, dropped 1.3 percent from last year, according to the report.

Over in Queens, more than half of the rental units are now in new developments, Miller said, and that change helped drive median rents up 5 percent year-over-year, to $2,727.

 

Related Articles

arrow_forward_ios
John Giannone and Jac Credaroli (Credit: iStock)
Two Elliman agents launch platform to provide renters, buyers and sellers up to $50K in unsecured loans
Two Elliman agents launch platform to provide renters, buyers and sellers up to $50K in unsecured loans
Jacob Sudhoff and Scott Durkin (Credit: Sudhoff Companies, Emily Assiran, iStock)
Douglas Elliman is coming to Texas
Douglas Elliman is coming to Texas
Douglas Elliman chairman Howard Lorber (Credit: Getty Images and iStock)
Elliman’s revenue rose 18%, after sales frenzy to avoid New York’s new transfer tax
Elliman’s revenue rose 18%, after sales frenzy to avoid New York’s new transfer tax
RSA President Joseph Strasburg (Rent Stabilization Association)
Landlords plea for water rate freeze ahead of vote
Landlords plea for water rate freeze ahead of vote
Tenants are singing longer leases to lock in low rent. (Getty)
Tenants locking in longer leases as apartment rents rise
Tenants locking in longer leases as apartment rents rise
Greenwich rentals, like at The Mill (pictured), are in high demand (iStock, The Mill)
In Greenwich, luxury rentals might be hotter than sales
In Greenwich, luxury rentals might be hotter than sales
New York City Council Speaker Corey Johnson and New York State Senator Toby Ann Stavisky. (Getty, Facebook via Stavinsky)
State renews J-51, putting tax break’s fate in city’s hands
State renews J-51, putting tax break’s fate in city’s hands
149 Clinton Street (Google Maps, iStock)
Brooklyn’s priciest rental will run you $30,000
Brooklyn’s priciest rental will run you $30,000
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...