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

TRD 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
Public Advocate Jumaane Williams (Getty; iStock)

“It’s compliance warfare”: Industry slams landlord accountability bills

“It’s compliance warfare”: Industry slams landlord accountability bills
Pretium CEO Don Mullen and Ares Management CEO Michael Arougheti (Photos via Pretium; Getty)

Pretium, Ares agree to buy Front Yard Residential

Pretium, Ares agree to buy Front Yard Residential
San Francisco and New York (iStock)

San Francisco rents continued unprecedented slide

San Francisco rents continued unprecedented slide
Single-family saves the day. Q3 resi sales up in South Florida

Single-family saves the day. Q3 resi sales up in South Florida

Single-family saves the day. Q3 resi sales up in South Florida
(Getty, iStock)

NYC rents continue to drop, and landlords are feeling the crunch

NYC rents continue to drop, and landlords are feeling the crunch
arrow_forward_ios

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

Loading...