September “wasn’t good” for the Manhattan rental market this year. Despite it not being good however, it was A LOT better than it was last September…+11.6% better.
The number of new leases signed in September 2018 for Manhattan rentals dropped a whopping -30%, according to Douglas Elliman Brokerage. Additionally, also coming from Elliman Brokerage, the total number of new rentals fell by 28.7%, from 7,330 in August to 5,227 in September.
Overall, the borough of Manhattan saw rental prices increase to a median of $4,169/month in September, an increase of 3.2% compared with August 2018 and a +1.8% increase annually.
Prices for two-bedroom units saw the largest value gains in Manhattan’s rental market, according to a report by Citi Habitats Brokerage.
- 2 bedroom units increased +6% from 8/18
- 3 bedroom units increased +4% from 8/18
- 1 bedroom units increased +3% from 8/18
- rents for studio units were flat compared with 8/18.
Gary Malin, president of Citi Habitats, said, “…tenants comparison shop between buildings and neighborhoods like never before…(and) the rise in car and bike sharing services, as well as expanded ferry services, have caused many New Yorkers to consider more affordable areas that were once off the beaten path. In rental markets today, the old adage of ‘location, location, location’ has been replaced with ‘price, price, price.’”
The luxury rental market also saw prices rise in Manhattan, according to Elliman Brokerage. The high-end of the luxury market saw median values rise to $8,191/month, up +6.4% compared with August 2018.
Brooklyn’s luxury rental market, on the other hand, saw median rental prices drop to $5,400/month, a -6.4% decrease compared with August and an annual drop of -1.8%.
Queens was the beneficiary of Brooklyn’s spill. Its top-end rental market saw prices reach $4,881/month, +2.5% compared to August 2018 and +2.2% compared to August 2017.
