Manhattan tenants are pushing back against landlords’ raising rent

New leases surged 24% in March

TRD NEW YORK /
Apr.April 11, 2019 07:00 AM
(Credit: IStock)

The median net effective rent rose 3.8 percent year-over-year to $3,288. (Credit: iStock)

As landlords get more aggressive with pricing, more Manhattan tenants aren’t sticking around.

In March, the borough saw a 21 percent jump in new leases, according to Douglas Elliman’s latest rental market report. That indicates that more tenants are choosing to opt for new leases rather than renew existing ones, as landlords push for higher rents, said Jonathan Miller, CEO of appraisal firm Miller Samuel and author of the report.

“It’s not a big rush to new development rentals, but more about the change in outlook of landlords,” he said. “The pushback is coming in the form of tenants signing new leases elsewhere.”

The median net effective rent rose 3.8 percent year-over-year to $3,288. That marked the third consecutive increase. At the same time, the share of new leases with concessions held steady at 41.8 percent versus 41.7 percent a year earlier.

“We’re looking at a long grind of declining reliance on concessions, just like we had long grind of increasing reliance on concessions previously,” Miller said.

Still, the signs point to a slowly strengthening market. Manhattan’s vacancy rate also fell to 1.86 percent from 2.05 percent — as inventory shrank 10 percent.

The luxury market continued to benefit from the slide in high-end sales. New leases surged 24 percent, with the median rental price dipping 2.2 percent to $8,250. The entry threshold was unchanged at $6,500.


Related Articles

arrow_forward_ios
TRD Talks Live

Watch tonight: Turning to tech on TRD Talks Live

(Credit: iStock)

Strong quarter for Manhattan home sales belies current struggle

Manhattan resi listings continue nosedive: report

Manhattan resi listings continue nosedive: report

252 East 57th Street and 196 Orchard Street with Samantha Sheeber and Tal Alexander

Closing in the time of Covid-19: “We’re pulling out all the stops”

Kuwait’s consul general in New York, Hamad Al-Hazeem and 50 United Nations Plaza (Credit: Google Maps)

Kuwait’s consul general buys 50 UN Plaza pad for $16M

Web searches for terms including “homes for sale” are way down up north. (Credit: Pixabay)

Fewer Canadians are searching for homes online amid pandemic

Massive stimulus package has limited upside for real estate

Massive stimulus package has limited upside for real estate

About 450 sellers pulled their listings last week (Credit: iStock)

As New York shut down, so did its resi market

arrow_forward_ios
Loading...