Manhattan homebuyers continue “camping out” in the rental market: Elliman

Consumer behavior related to recent tax increases, poor sales market behind stronger rental market: Elliman

New York /
Jul.July 11, 2019 09:45 AM
(Credit: iStock)

(Credit: iStock)

Peak “camping” season for Manhattan’s rental market is in full swing.

With the caveat of last month’s rent law changes, “overall, June was a positive month for landlords,” according to appraiser Jonathan Miller, who authored the Douglas Elliman’s most recent monthly rental report.

Summer is typically known as the busiest period of the year for rental transactions, however new leases were down 15 percent compared to May and 9.6 percent year over year.

Last month, the report found that landlord concessions dropped again, dialing down 0.4 percent year over year, while rents crept up with the median rental price (which includes concessions) climbing 4.7 percent to $3,471. At the same time, inventory fell just over 5 percent compared to the previous year. The vacancy rate held steady at about 1.6 percent.

Miller called the strengthening market an “uninterrupted trend” for the past six months, but pointed to the borough’s sales market and recent tax changes at the state and federal levels as major factors.

Manhattan’s struggling sales market, which showed no growth until the threat of the state’s new taxes on residential properties prompted a sudden surge last month, continues to turn more would-be buyers into renters, according to him.

That comes in spite of June’s strong sales and low mortgage rates, Miller continues to see “camping out” — people renting until they feel more certain about buying — as the common narrative for the market.

“The rental market I don’t think is really standing on its own,” he said in an interview.


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
New Yorkers who signed concession-laden apartment deals during the pandemic are finding a rude surprise when it's time to renew. (iStock)
New York: Welcome to the era of sky-high renewals
New York: Welcome to the era of sky-high renewals
Gov. Kathy Hochul, who announced today that the state has now approved or distributed $1.2 billion in federal rental assistance funds (Getty)
After huge head start for rest of US, NY now ranks 1st in rent relief rollout
After huge head start for rest of US, NY now ranks 1st in rent relief rollout
1 Boerum Place in Brooklyn and Avery Hall founding partner Avi Fisher (Avery Hall)
One Boerum Place lands $177M recapitalization
One Boerum Place lands $177M recapitalization
The Dallas-Fort Worth metro leads the way in projected apartment deliveries in 2021 followed by New York and Phoenix. (iStock)
Dallas and NY metro areas lead US in projected apartment deliveries
Dallas and NY metro areas lead US in projected apartment deliveries
From left: Phoenix, Tampa and Las Vegas had the largest rises in rent, according to a Yardi report. (iStock)
Rents rise in all big US cities, a pandemic first
Rents rise in all big US cities, a pandemic first
arrow_forward_ios

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

Loading...