Although prices remained stable overall month-to-month, MNS reports an 8.25 percent increase in Manhattan apartment listings in its new March rental report.
The borough contained 9,317 units for rent in March, up from 8,607 in February, according to the real estate report. Although prices hardly moved on the overall scale with a decrease of .005 percent, MNS expects to see prices gradually increase closer to mid-year.
“Many multi-family owners have leases expiring in the more peak months. Landlords have done 18 month leases in previous Decembers, with anticipation of the apartments turning over in the busier time,” MNS CEO Andrew Barrocas said. “We’re on the way back up in terms of the activity in the marketplace. April going into May ramps up, with peaks in June and July. Every year, this time it shows that the [price] numbers are a little softer.”
Annual prices dipped by 2.92 percent from $3,966 in March 2015 to $3,850.26 last month.
Upper East Side: most market inventory
Market inventory was highest in Financial District doorman studios (239 units), Upper East Side non-doorman studios (290 units), Midtown West one-bedrooms with doormen (446 units), Upper East Side one-bedrooms without doormen (435 units), Upper East Side two-bedrooms with doormen (285 units) and Upper East Side two-bedrooms without doormen (233 units).
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Conversely, inventory was tightest last month in SoHo doormen studios (2 units), Tribeca doormen studios (2 units), SoHo one-bedrooms with doormen (10 units), Tribeca one-bedrooms without doormen (8 units), Gramercy two-bedrooms with doormen (6 units) and Tribeca two-bedrooms without doormen (10 units).
Harlem shows shift in annual price
Harlem saw the largest decrease in annual rent at 12.7 percent. This drop was affiliated mostly with the doorman sector. Studio, one-bedroom and two-bedroom prices reached $2,357, $2,800 and $3,544, respectively.
MNS notes that 2016 balanced out the previous year’s boom of new construction, which inflated average rent in areas like Harlem.
Biggest month-over-month changes
With the exception of SoHo doorman studios and TriBeCa non-doorman studios, which both had small sample sizes inflating price trends, the Financial District experienced a month-over-month growth in rent of 2.5 percent overall.
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In the Financial District, rent for doorman studios increased 1.2 percent, while non-doorman studios increased 1.5 percent. One-bedrooms with doormen rose 1.7 percent, and one-bedrooms without doormen rose 3.9 percent. Two-bedrooms without doormen rose 4.7 percent, and two-bedrooms with doormen rose 1.5 percent.
Here are the overall month-to-month trends across Manhattan’s apartment types:
- Average studio (doorman): $2,938, up from $2,918 in February
- Average studio (non-doorman): $2,384, down from $2,480 in February
- Average one-bedroom (doorman): $4,104, up from $4,097 in February
- Average one-bedroom (non-doorman): $3,081, up from $3,037 in February
- Average two-bedroom (doorman): $6,101, down from $6,102 in February
- Average two-bedroom (non-doorman): $4,281, up from $4,183 in February
New development for Manhattan in the future?
With 17 million square feet of residential and commercial space planned for Hudson Yards, Barrocas recognizes rental market demand and signs why leasing in Manhattan is going to potentially strengthen over the next few years, but still believes construction and development have barriers to overcome.
“There hasn’t been a tremendous amount of new development on the rentals side in the last five years. The majority have been heavily focused on the condo side,” he said. “We’re seeing very high rent prices and a large shortage of inventory. With the land prices and without a 421-a tax exemption, you can’t build a rental.”
