Manhattan Residential Rental Market Report

Transcription

1 Manhattan Residential Rental Market Report Second Quarter 217

2 Second Quarter 217 This report follows overall conditions in the Manhattan rental market during June as well as throughout the second quarter of the year. In addition, we track average and median rents for 14 neighborhoods in the borough of Brooklyn over the same period. Our research found that rental market conditions shifted further to the tenants favor during June, bucking the historic trend of a market that tightens as summer progresses. Average rents remained flat or declined slightly across the board month-over-month, while the vacancy rate climbed. Landlords use of incentives also increased. This extends the string of double-digit concession percentages to 2 consecutive months. From May to June, rents in Manhattan and Brooklyn remained stagnant. Rents have climbed slightly but consistently since January, but this trend came to a halt in June, when rents declined overall - albeit very slightly. While home-seekers are out in force, the lack of rent increases reflects continued pricesensitivity in the marketplace. In June, pricing in Manhattan declined an average of 1% for studio and two-bedroom units when compared to the month prior. Rents for one-bedroom homes rose, while they decreased for three-bedrooms but by insignificant amounts for both categories. In Brooklyn, average rents fell 2% for studio apartments during June. Pricing declined for one-bedrooms, while it increased for three-bedroom homes. However, the changes were negligible for both apartment sizes. Rents for twobedroom units remained unchanged from May. In addition, Manhattan rents remained stable year-over-year. When compared to June 216, rents in Manhattan increased 1% on average for studio, one- and three-bedroom homes. For two-bedroom units, prices decreased an average of 3%. Citi Habitats has tracked rents across the borough since 22 - and according to our research, rents continue to hover near all-time highs, despite the lack of recent growth. Meanwhile, the vacancy rate ticked upwards. In June, 1.74% of Manhattan apartments were vacant, compared to 1.58% in May. The rate also rose slightly year-overyear. In June 216, the vacancy rate was 1.7%. Vacancy rates were highest in the East and s, where small homes often carry high price tags. In contrast, inventory was tightest in and the, both areas with a reputation for offering good value for tenants. Are incentives the market s new normal? In June, 28% of new leases signed with Citi Habitats included some form of concession, up from 22% in May. With increased options for apartment shoppers, both in Manhattan and the outer boroughs, many landlords continue to rely on concessions to keep rents at the levels they desire. The percentage of leases signed with Citi Habitats that include a move-in incentive has topped 2% since September of 216, and has been higher than 1% from October 215 onwards. While the market has recently slowed, the quarterly data shows strength when compared to Q1. During the second quarter of 217, Manhattan rents increased overall when compared to the quarter that preceded it. Meanwhile, the borough s vacancy rate decreased to from 1.93% in Q1. The percentage of concessions also fell quarter-over-quarter. During the most recent quarter, 26% of leases included one, compared to 34% in Q1. Renters have more housing options, and in some cases, increased negotiability compared to years past. However, it s important to remember that the local rental market remains strong and competitive a sign of our city s vitality. Our goal with this report is to create a better understanding our unique marketplace, and we hope you find it to be a valuable resource. The Corcoran Group is a licensed real estate broker located at 66 Madison Ave, NY, NY 165. corcoran.com 2

3 Second Quarter 217 AVERAGE RENT SUMMARY: Q2 217 $2,85 3,751 4,856 6,748 $2,654 3,646 4,794 6,182 $2,356 2,914 3,523 4,929 $2,641 3,79 4,872 5,963 $2,93 2,3 3,38 3,594 $2,391 3,358 3,89 4,729 $2,2 3,223 4,246 5,57 $2,35 3,246 4,569 5,364 $2,35 2,463 2,843 3,54 $2,398 3,163 4,15 5,48 $3,13 4,427 6,187 8,231 $2,16 2,754 3,391 5,596 $2,262 2,885 4,543 6,693 $1,5 1,677 2,131 2,339 $2,754 3,772 4,382 6,184 Average: Q2/17 $2,38 3,158 4,19 5,375 Average: Q1/17 % Change Average: Q2/16 $2, % $2,324 3,98 1.9% 3,114 4,98.3% 4,134 5, % 5,322 % Change: Q2-16/17 2.4% 1.4% -.6% 1.% 1.63% 1.86% 2.14% Average: Q2/17 Average: Q1/17 Difference Average: Q2/16 Difference: Q2-16/17 AVERAGE VACANCY RATE: Q % 1.95% 1.91% 1.42% 1.71% 1.51% 1.57% 2.38% 1.93% %.9 CONCESSION SECOND QUARTER % OVERALL BLENDED AVERAGES: Q2 217 BLDG Classification New Development w/dm* $3,396 4,716 7,653 1,47 Doorman $2,891 4,56 6,75 9,25 Elevator** $2,497 3,299 4,64 6,142 Walkup*** $2,238 2,812 3,547 5, MANHATTAN RENTAL VACANCY RATES: Q % 1.82% 2.6% 1.93% 11 Q2/16 Q3/16 Q4/16 Q1/16 Q2/17 6, 5, 4, 3, 2, MEDIAN RENT SUMMARY: Q , Median $3,948 $4,23 $3,53 $4,47 $2,642 $3,243 $3,483 $3,58 $3,158 $3,58 $6,6 $3,3 $3,598 $2,233 $3,947 *New Developments include all rental and condo buildings built after 26. **Elevator averages in the downtown neighborhoods include a significant number of loft rentals compared to other neighborhoods. The Corcoran Group is a licensed real estate broker located at 66 Madison Ave, NY, NY 165. corcoran.com 3

4 Second Quarter 217 AVERAGE RENT SUMMARY: June 217 $2,959 3,828 4,75 6,732 $2,697 3,53 4,789 6,7 $2,298 2,917 3,546 4,932 $2,767 3,9 4,891 5,813 $1,9 2,294 3,257 3,515 $2,35 3,325 3,861 4,635 $2,173 3,212 4,185 5,225 $2,362 3,251 4,584 5,397 $2,79 2,575 2,879 3,45 $2,411 3,25 4,75 5,5 $3,2 4,345 6,184 8,42 $2,152 2,854 3,34 5,868 $2,239 2,881 4,549 6,524 AVERAGE VACANCY RATE: June % 1.77% 2.67% 1.61% 2.4% 1.79% 1.36% 2.% 1.41% 1.51% 2.58% Average: June 1.74% Average: May 1.58% $1,55 1,664 2,8 2,442 Difference -.16 $2,666 3,688 4,293 6,3 Average: June $2,387 3,165 4,79 5,384 Average: May $2,412 3,155 4,122 5,388 % Change -1% % -1% 1% CONCESSION JUNE % OVERALL BLENDED AVERAGES: June 217 BLDG Classification New Development w/dm* Doorman Elevator** Walkup*** $3,436 4,691 7,562 1,538 $2,892 4,66 6,782 8,918 $2,522 3,331 4,587 6,29 $2,233 2,827 3,569 5,75 MANHATTAN RENTAL VACANCY RATES: June % 2.11% 1.9% 2.13% 1.92% 1.8% 1.9% 1.98% 1.89% 1.73% 1.58% 1.74% 1.5 Jun July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun/17 7, 6, 5, 4, 3, 2, 1, BPC / Financial Dist. MEDIAN RENT SUMMARY: June 217 Median $3,995 $3,995 $3,45 $4,285 $2,6 $3,295 $3,5 $3,6 $3,2 $3,55 $6,95 $3,3 $3,595 $2,25 $3,895 *New Developments include all rental and condo buildings built after 26. **Elevator averages in the downtown neighborhoods include a significant number of loft rentals compared to other neighborhoods. The Corcoran Group is a licensed real estate broker located at 66 Madison Ave, NY, NY 165. corcoran.com 4

5 Second Quarter 217 AVERAGE RENT SUMMARY: May 217 $2,832 3,765 4,85 6,9 $2,649 3,687 4,794 6,188 $2,392 2,871 3,61 5,14 $2,64 3,815 4,954 5,977 $2,449 2,277 3,374 3,6 $2,325 3,35 3,828 4,695 $2,23 3,175 4,216 5,46 $2,45 3,257 4,522 5,495 $2,75 2,513 2,8 3,483 $2,35 3,213 4,116 5,433 $3,19 4,377 6,88 8,224 $2,184 2,712 3,457 5,612 $2,343 2,866 4,67 6,685 AVERAGE VACANCY RATE: May % 1.81% 1.59% 1.21% 1.79% 1.65% 1.27% 1.8% 1.36% 1.55% 2.1% Average: May 1.58% Average: April $1,454 1,666 2,147 2,375 Difference -.2 $2,74 3,777 4,397 6,97 Average: May $2,412 3,155 4,122 5,388 Average: April $2,342 3,154 4,127 5,354 % Change 3% % % 1% CONCESSION MAY % OVERALL BLENDED AVERAGES: May 217 BLDG Classification New Development w/dm* Doorman Elevator** Walkup*** $3,41 4,77 7,767 1,334 $2,898 4,57 6,727 9,333 $2,458 3,283 4,581 6,167 $2,225 2,826 3,568 5, MANHATTAN RENTAL VACANCY RATES: May % 2.13% 1.7% 1.92% 1.8% 1.9% 1.9% 1.98% 1.68% 1.73% 1.89% 1.58% May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May/17 7, 6, 5, 4, 3, 2, 1, BPC / Financial Dist. MEDIAN RENT SUMMARY: May 217 Median $3,9 $4, $3,45 $4,4 $2,65 $3,3 $3,5 $3,59 $3,75 $3,595 $5,925 $3,3 $3,65 $2,175 $3,995 *New Developments include all rental and condo buildings built after 26. **Elevator averages in the downtown neighborhoods include a significant number of loft rentals compared to other neighborhoods. The Corcoran Group is a licensed real estate broker located at 66 Madison Ave, NY, NY 165. corcoran.com 5

6 Second Quarter 217 AVERAGE RENT SUMMARY: April 217 $2,625 3,66 5,13 6,613 $2,617 3,72 4,8 6,352 $2,378 2,953 3,413 4,841 $2,516 3,654 4,77 6,98 $1,931 2,329 3,61 3,668 $2,497 3,4 3,98 4,856 $2,196 3,281 4,336 4,9 $2,283 3,231 4,6 5,2 $1,95 2,3 2,85 3,688 $2,434 3,71 4,124 5,57 $3, 4,558 6,288 8,5 $2,144 2,697 3,413 5,39 $2,25 2,99 4,41 6,871 AVERAGE VACANCY RATE: April % 2.13% 1.95% 1.36% 2.1% 1.88% 1.46% 1.42% 1.68% 2.18% Average: April Average: March 1.89% $1,495 1,7 2,167 2,2 Difference -.11 $2,856 3,851 4,455 6,155 Average: April $2,342 3,154 4,127 5,354 Average: March $2,351 3,13 4,137 5,33 % Change 2% 1% % 1% CONCESSION APRIL % OVERALL BLENDED AVERAGES: April 217 BLDG Classification New Development w/dm* Doorman Elevator** Walkup*** $3,349 4,749 7,628 1,539 $2,884 4,46 6,74 9,365 $2,51 3,282 4,646 6,232 $2,256 2,783 3,52 5,196 MANHATTAN RENTAL VACANCY RATES: April % 2.13% 1.79% 1.81% 1.7% 1.92% 1.8% 1.9% 1.9% 1.98% 1.68% 1.73% 1.89% 7, 6, 5, 4, 3, 2, 1, BPC / Financial Dist. MEDIAN RENT SUMMARY: April 217 Median $3,95 $4,75 $3,61 $4,535 $2,675 $3,135 $3,45 $3,55 $3,198 $3,595 $5,997 $3,3 $3,55 $2,275 $3,95 *New Developments include all rental and condo buildings built after 26. **Elevator averages in the downtown neighborhoods include a significant number of loft rentals compared to other neighborhoods. The Corcoran Group is a licensed real estate broker located at 66 Madison Ave, NY, NY 165. corcoran.com 6