Why fewer Brooklyn and Queens tenants are moving

More renters are opting to renew their leases, according to a recent report from Douglas Elliman

New York /
Jul.July 11, 2019 01:30 PM
Among Brooklyn's priciest spots is DUMBO; pictured is the neighborhood's Main Street Park (Credit: iStock)

Among Brooklyn’s priciest this month is DUMBO; pictured is the neighborhood’s Main Street Park (Credit: iStock)

Landlords offering incentives to renters in Queens and Brooklyn are increasingly in the minority as prices rise and a rising number of tenants renew rather than move.

Concessions fell for the sixth consecutive month in Brooklyn, while in Northwest Queens it was the fourth month running where tenant perks declined, according to Douglas Elliman’s latest rental market report.

Meanwhile, both boroughs saw rents tick up. The median rental price, including concessions, in Brooklyn rose 5.9 percent year-over-year to $2,914. In Queens, it rose 1.6 percent compared to the previous year — though the borough saw a 4.1 percent decrease in price compared to May, according to Elliman.

The market share of concessions in Brooklyn fell from 40.4 percent in June 2018 to 38.4 percent last month. In Queens, the drop was even more pronounced with concessions falling from 45.7 percent to 36.2 percent in the same time period.

The level of leasing activity in both of the outer boroughs was also dramatically lower. Brooklyn saw a 25.4 percent drop in new leases in June, compared to May, and a 16.6 percent drop year over year. In Queens, the fall in transactions from May to June was 29.3 percent and 11.3 percent compared to June 2018 levels.

Miller doesn’t characterize new lease drop-off as “that large” and explained that was an indication that “landlords were better at retaining tenants upon renewal.”

“We’re are tracking new leases, not renewals – new leases decline, renewals go up,” he continued.

In Queens, inventory on the market fell to the tune of 5.3 percent compared to May. In Brooklyn, however, supply grew by 4 percent.

In a separate report prepared by Citi Habitats, Brooklyn’s priciest neighborhoods for the month, according to median monthly rent, were DUMBO at $5,200, Brooklyn Heights at $3,950 and Downtown Brooklyn at $3,720.


Related Articles

arrow_forward_ios
Nestio's Caren Maio (Credit: Emily Assiran)
“Like TurboTax”: Nestio launches online leasing
“Like TurboTax”: Nestio launches online leasing
(Credit: iStock)
What you need to know about landlords’ challenge to New York’s rent law
What you need to know about landlords’ challenge to New York’s rent law
RSA President Joseph Strasburg (Rent Stabilization Association)
Landlords plea for water rate freeze ahead of vote
Landlords plea for water rate freeze ahead of vote
Tenants are singing longer leases to lock in low rent. (Getty)
Tenants locking in longer leases as apartment rents rise
Tenants locking in longer leases as apartment rents rise
Richard Segal of Seavest Investment Group, David Marx of Marx Development Group and 902 Quentin Road in Brooklyn (Photos via Seavest Investment Group, Marx Development Group and VRMNY)
Westchester firm buys $54M Brooklyn medical building
Westchester firm buys $54M Brooklyn medical building
A campaign by the Small Property Owners of New York to raise the rent on stabilized units doesn’t have the backing to move the needle (Getty)
Small landlords’ raise-the-rent campaign lacks backing
Small landlords’ raise-the-rent campaign lacks backing
688 and 702 Court Street, Brooklyn with Madison Capital managing partner Richard Wagman (Google Maps, Madison Capital)
Madison Capital snatches up Red Hook industrial sites for $45M
Madison Capital snatches up Red Hook industrial sites for $45M
85 Jay Street (Winick, iStock)
An $8M Dumbo condo tops Brooklyn’s luxury contracts
An $8M Dumbo condo tops Brooklyn’s luxury contracts
arrow_forward_ios

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

Loading...