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

Jacob Sudhoff and Scott Durkin (Credit: Sudhoff Companies, Emily Assiran, iStock)

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

Wall Street bonus season is the stuff home sellers’ dreams, as they picture eager buyers armed with hefty bonus checks and willing to pay top price. But in a buyer’s market that vision may be more like a mirage (Credit: iStock)

Here’s what Wall Street bonus season means for real estate this year

Adam Neumann and 78 Irving Place (Credit: Getty Images and StreetEasy)

Adam Neumann is asking $37M for Gramercy Park triplex

(Credit: iStock)

Residential rents continue upward march in Manhattan, Brooklyn and Queens

Redfin's Glenn Kelman (Credit: iStock)

“It’s on like Donkey Kong”: Redfin scrambling to keep up with iBuyer demand

Don Lemon and Tim Malone with their apartment at 2280 Frederick Douglass Boulevard 

CNN’s Don Lemon lists Harlem condo with fiancé broker Tim Malone

arrow_forward_ios
Loading...