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
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
200 Water Street and 31 Prospect Park West (Google Maps)

Brooklyn’s luxury deal totals rise for 3rd straight week

Brooklyn’s luxury deal totals rise for 3rd straight week
Metro areas with less affordable housing drive high-income buyers to eye homes in lower-income neighborhoods at disproportionate rates (iStock)

TRD Insights: Gentrification happening fastest in least affordable cities

TRD Insights: Gentrification happening fastest in least affordable cities
Gov. Andrew Cuomo has given the go-ahead to reopen schools for in-person learning statewide (Getty; iStock)

School’s back on. Will the NYC resi market follow suit?

School’s back on. Will the NYC resi market follow suit?
Douglas Elliman chairman Howard Lorber (Lorber by Chip Somodevilla/Getty Images; iStock)

Douglas Elliman’s New York revenues fall by half

Douglas Elliman’s New York revenues fall by half
New York’s real estate market is becoming two different stories: Manhattan, where deals are falling — and the suburbs, where demand is spiking. (iStock, Unsplash)

Manhattan is cold, the suburbs and Brooklyn are hot: Here’s what the resi market looked like in July

Manhattan is cold, the suburbs and Brooklyn are hot: Here’s what the resi market looked like in July
arrow_forward_ios

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

Loading...