Manhattan, Brooklyn see flurry of new leases but owners get real about prices

Listing inventory up 40 percent year-over-year in Manhattan

New York /
Sep.September 08, 2016 10:06 AM

Manhattan saw several new leases last month, but price growth continues to chug along at a glacial pace.

The median rental price hit $3,399 in August, virtually identical to the same time last year, according to Douglas Elliman’s latest market report. The number of new leases jumped to 6,285, a 1.8 percent year-over-year increase, but Jonathan Miller, the author of the Elliman report, said the influx of new inventory kept prices at bay. Listing inventory rose to 7,478, a 39.6 percent increase from the same time last year.

“There’s a lot of activity, but the growth of inventory is keeping the market in check,” he said.

Gary Malin, president of Citi Habitats, said that owners have finally “capitulated” and lowered prices to match the softening market. The price decreases, he said, led to a decrease in the vacancy rate (the Elliman report put the rate at 2.14 percent, down from 2.3 percent last year).

“Owners are openly recognizing market conditions,” he said. “There’s plenty of demand out there, they’re just looking for what they can afford.”

Like July, the share of new leases with landlord concessions saw a large spike in August, jumping to 12.1 percent — up from 7.4 percent in August 2015. The only price segment that saw increases to median rental price last month was the first 30 percentile — entry-level apartments — which had a 2.8 percent year-over-year increase to $2,359, according to the Elliman report.

The rental situation in Brooklyn closely mirrors Manhattan. The median rental price decreased for the second month in a row, dropping down to $2,895. The share of new rentals with landlord concessions doubled year-over-year, rising to 10.5 percent last month. Listing inventory rose 42.7 percent to 2,501, and the borough saw a 35.8 percent year-over-year jump in the number of new leases, which totaled 1,495 last month.

In Queens, the median rental price increased by 5.3 percent from the same time last year to $2,895. Miller said the price increase is skewed by the fact that most of the apartments were in new developments. The borough saw a 20.3 percent year-over-year increase in new leases, which rose to 355 last month.


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
(Unsplash / Paulo Silva)
Manhattan resi market has busiest quarter in 3 decades
Manhattan resi market has busiest quarter in 3 decades
(Getty)
Douglas Elliman mandates staff vaccination at offices nationwide
Douglas Elliman mandates staff vaccination at offices nationwide
Cash to burn: How brokerages are spending capital in a record year
Cash to burn: How brokerages are spending capital in a record year
Cash to burn: How brokerages are spending capital in a record year
Richard Steinberg (Courtesy of Compass)
Richard Steinberg jumps from Douglas Elliman to Compass
Richard Steinberg jumps from Douglas Elliman to Compass
Josh Flagg (Getty)
“Million Dollar Listing” star Josh Flagg jumps to Elliman
“Million Dollar Listing” star Josh Flagg jumps to Elliman
arrow_forward_ios

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

Loading...