Manhattan, Brooklyn see record high rents while concessions slip

Rising rents linked to soft sales market and new rent laws

New York /
Sep.September 12, 2019 07:00 AM

Rental prices hit new highs in Brooklyn and Manhattan last month as concessions slightly decreased.

In Brooklyn, the median rent price reached a record high of $3,015 following eight consecutive months of growth, according to the latest market report from Douglas Elliman.

Rent prices also climbed in Manhattan, where the median price reached $3,500. In outlier Northwest Queens, median rents dropped 1.2 percent to $2,960.

Jonathan Miller, CEO of appraisal firm Miller Samuel and author of the report, said the rent increases were driven by a soft sales market, which led prospective buyers to “camp out” while they waited for the market to shift.

Furthermore, he said new rent laws passed in June would likely have triggered rent increases, though he acknowledged that observation was merely anecdotal and had not been quantified.

The report showed that concession were sliding but remained high overall, despite predictions they would melt away as the rental market strengthened.

“Concessions were so high for so long that it’s baked into the market in terms of how people think,” Miller said. “There’s an expectation [from renters] that there’ll be a concession.”

Hal Gavzie, Douglas Elliman’s executive manager of leasing, said he didn’t predict there would be any dramatic changes to concession trends in the next year.

 

Gavzie handles one of Elliman’s offices in Queens, where the median rent fell for the third time in 2019, according to the report. He said the trend was tied to the large amount of new development in the area.

Queens is becoming increasingly attractive to New Yorkers as prices in Manhattan soar. To put that into perspective: in the past two months, the median rent for studios and one-bedroom apartments hit 11-year highs, Miller said. For a studio, that translated to $2,700. For a one bedroom, that meant a median price of $3,595.


Related Articles

arrow_forward_ios
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
 Fredrik Eklund and the property (Getty, Steve Frankel)
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Gordon Ramsey and his Lucky Cat restaurant (Lucky Cat)
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Gordon Ramsay to open first South Florida restaurant in Miami Beach
The Centre at Purchase at 1, 2, 3, 4 Manhattanville Road with George Comfort & Sons CEO Peter Duncan (George Comfort & Sons)
Westchester office park owned by George Comfort & Sons slated for auction
Westchester office park owned by George Comfort & Sons slated for auction
Wells Fargo hit with $400M suit for breach of contract linked to robo-signing scandal
Wells Fargo hit with $400M suit for breach of contract linked to robo-signing scandal
Wells Fargo hit with $400M suit for breach of contract linked to robo-signing scandal
Attorney General Letitia James and A&E Real Estate CEO James Patchett (Getty, iStock)
A&E pays just $510K in lead-paint settlement
A&E pays just $510K in lead-paint settlement
Heath Freeman, managing director of Alden Global Capital, and the house at 3503 Lodge Drive in Coconut Grove, Miami (Getty, Compass / Brown Harris Stevens)
“Hedge fund vampire” bites into waterfront Coconut Grove mansion for $19M
“Hedge fund vampire” bites into waterfront Coconut Grove mansion for $19M
Seeding from recapitalization of 25 health care properties
KKR, Cornerstone in $1B JV to develop health care facilities
KKR, Cornerstone in $1B JV to develop health care facilities
arrow_forward_ios

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

Loading...