Manhattan rental concessions fell for the first time since 2015

With more would-be buyers turning to the rental market, metrics are showing improvement

TRD New York /
Feb.February 14, 2019 07:00 AM

(Credit: Unsplash and Miller Samuel)

Manhattan’s rental market has broken its nearly four-year streak of rising concessions.

The market share of landlord incentives was 44.5 percent in January, down from 49.3 percent a year earlier, according to Douglas Elliman’s latest market report. The slide came after 43 straight months of increases.

“The trend has been so consistent, and now we’re seeing this stretch being broken,” said Jonathan Miller, CEO of appraisal firm Miller Samuel and author of the report. “I see it being a choppy trend from here.”

Median net effective rent in January was $3,320, a 5.7 percent increase from a year earlier. At the same time, days on market dipped 5.6 percent.

The improving metrics in the rental market are largely a function of would-be buyers who remain on the sidelines, Miller added. As more people hold off on purchases — thanks to concerns about economic uncertainties — they are camping out in the rental market. Now, enough potential buyers have opted rent for it to push the market upward slightly, Miller said.

“People are being cautious, and that’s logical,” he said. “We could continue to see some strength at the expense of the sales market.”

In a separate report, Citi Habitats said the vacancy rate declined for the first time in four months. In January, the Manhattan vacancy rate was 1.52 percent, down from 1.6 percent in December. The rate was 1.91 percent in January 2018. Washington Heights, with a median rent of $2,337, was the least expensive neighborhood.


Related Articles

arrow_forward_ios

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

Elliman’s revenue rose 18%, after sales frenzy to avoid New York’s new transfer tax

Triplemint expands to New Jersey

Unrealistic pricing bogs down Miami luxury condo market: TRD Showcase & Forum

Brokerage firms are strategizing ways to make up losses after the cost of application fees was capped at $20. (Credit: iStock)

Brokerages on rental application fee cap: “It hurts”

From left: RealPlus' Eric Gordon, Corcoran's Pam Liebman, Halstead's Diane Ramirez, Douglas Elliman's Howard Lorber and Brown Harris Stevens' Bess Freedman (Credit: Eric Gordon by Emily Assiran, Getty Images, Halstead, BHS, iStock)

Terra sells part of RealPlus stake to Corcoran and Elliman

The Real Deal’s E.B. Solomont receives Front Page Award

arrow_forward_ios