Sluggish sales market continues to bolster Manhattan rents: Elliman

The share of leases with concessions also fell

New York /
Mar.March 14, 2019 07:00 AM

Median net effective rent rose 4.1 percent year over year to $3,297 (Credit: Unsplash and Miller Samuel)

The luxury sales slump has been a silver lining for Manhattan’s rental market.

Rents rose in February as would-be buyers took refuge in the rental market, according to Douglas Elliman’s latest rental market report. Median net effective rent rose 4.1 percent year over year to $3,297 — the second straight monthly increase. Meanwhile, the share of new leases with concessions was 41.6 percent, compared with 47.6 percent a year earlier.
“The rental market is turning, but slowly,” said Jonathan Miller, CEO of appraisal firm Miller Samuel and author of the report. “It seems largely dependent on the sales market.”

The number of sales fell to 2,432 in the fourth quarter of 2018, a dip of 3.3 percent compared to the same time last year, Elliman said in a previous report. As luxury sales prices have fallen, the higher end of the rental market as seen rent growth. In February, the median rental price in the luxury segment climbed 5.9 percent year over year to $9,000. The entry threshold rose 3.2 percent to $6,600. The median rent for new developments also grew — rising 7.9 percent to $5,134.

In a separate report, Citi Habitats noted that the vacancy rate fell for the second straight month to 1.4 percent. That’s the lowest since September, when 1.36 percent of apartments were vacant.

“In February, the rental market released some of the pent-up demand that developed over the holiday season,” Gary Malin, president of Citi Habitats, said in the report. “As we transition from winter to spring, conditions have started to improve for landlords.”

Manhattan rents were lowest in Washington Heights, with a median rent of $2,250, the report said. The Soho/Tribeca area had the least inventory with a vacancy rate of 1 percent.


Related Articles

arrow_forward_ios
Here are the week’s top luxury sales
Here are the week’s top luxury sales
Here are the week’s top luxury sales
Clockwise from left: John D. Rockefeller, Izzy Englander, Steven Mnuchin, David Koch, Jacqueline Bouvier, and William Zeckendorf (Credit: Getty Images and StreetEasy)
For 15 years, David Koch lived at the world’s “richest building”
For 15 years, David Koch lived at the world’s “richest building”
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
From left: 944 Fifth Avenue, 67-69 East 93rd Street and 15 East 88th Street (Google Maps)
Three Manhattan sellers aim high asking $25M+ for luxury pads
Three Manhattan sellers aim high asking $25M+ for luxury pads
FiDi condo supply is through the roof as workers delay office return. (Getty)
FiDi condo glut is through the roof
FiDi condo glut is through the roof
eXp CEO Glenn Sanford (eXp, iStock)
Virtual broker eXp Realty has another record quarter
Virtual broker eXp Realty has another record quarter
RSA's Joseph Strasburg and Judge Lawrence Marks (Getty, Strasburg via Jeffersons Siegel)
Landlord group challenges state eviction ban
Landlord group challenges state eviction ban
Redfin CEO Glenn Kelman (Getty, Redfin)
Pocket listings exclude minority homebuyers, Redfin CEO says
Pocket listings exclude minority homebuyers, Redfin CEO says
arrow_forward_ios

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

Loading...