Big Apple Booming

Key Highlights

• Lux listings in Manhattan selling at record pace for three months
• Renters seizing discounts and moving up

Manhattan’s Luxury Homes Going, Going, Gone

Oshan Realty tells us that Manhattan’s luxury homes have been essentially flying off the shelf for the last three months.  In its latest weekly report, Oshan Realty indicated that luxury homes in Manhattan with listing prices of $4M+ have been selling at record pace for 12 consecutive weeks.

Donna Olshan, president of Olshan Realty, wrote that this “extraordinary record-breaking streak…(and) the longest such streak since we started recording the Olshan Report in 2006…” of selling 30 or more lux homes every week has produced 154 signed luxury contracts in the last three weeks alone.

Steep Discounts Playing a Role

Granted, this record-producing streak of selling 154 luxury listings in just three weeks is due, in part, to steep discounts.  Even still…these 154 listings generated a total of just under $1.3B.

New York Renters Also Seizing Discounts

New data from Corcoran on the Manhattan rental market indicates that renters, like buyers, are taking advantage of discounts.

According to Pamela Liebman, president and CEO of the Corcoran Group,“…renters…lured by more- attractive prices…are back in droves – and they are taking the opportunity to upgrade.”

Lower Rents Mean Increased Leasing Activity

There were 7,287signed leases in March 2021, an increase of +44% compared to one month before.

Renters, according to Corcoran’ sLiebman, are leveraging rent discounts to seek rental properties with greater services, amenities and living space.  Some renters are even moving to different neighborhoods to take advantage of more amenities.

Rent Discounts by Neighborhood

In Manhattan, the median rent in doorman buildings fell -17% y/y in March to $3,408.  In non-doorman buildings, median rent fell -16% y/y to $2,500 for the 11^thconsecutive months of rent declines.

The biggest annual median rent decline, -27%, hit Tribeca/SoHo. Rent dropped more than $2,000 to $5,422, according to Corcoran. The neighborhood of Murray Hill/Kips Bay also saw a median rent decline of -27% to $3,051.

The Upper West Side fared better with rents declining just -8% y/y in March to $4,064.

Average rent for two bedroom apartments fell        -11% y/y, the least decline of all rental property due to the high demand of larger apartments.  Studio average rents dropped -18%.

Inventory and Days on Market Also Dropped in March

Active rental listings in Manhattan have dropped since December. The latest Corcoran report stipulated that listings fell -21% in March.

Days on market also fell -13% in March.  Again, higher demand due to rent discounts.

Thanks to Olshan Realty, the Corcoran Group and MansionGlobal.

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