TOWN Data | May 2017 Leasing Report

TOWN Residential, New York’s leading luxury real estate services firm, is proud to share the latest installment of the TOWN Leasing Report – a monthly update on residential leasing trends and pricing.  

This May, the Manhattan rental market closed at a median price of $3,644, reflecting a 2% increase from last month’s median price. The month saw a large increase in number of new rentals hitting the market, as well as in number of listings with a price decrease, at 7,600 and 9,572 respectively. The average price per square foot increased by 1.6% month over month.

Following the end of the collegiate school year, recent college graduates are now beginning to move into the city to transition from academic to professional lives. The latest unemployment rate for New York City was 3.9%, down almost a full point from the same period last year. Over the course of the past year, the city has created 40,300 private sector and government jobs, reflecting an increase of .9% year over year. 

Despite this, the country now registers a total of $1.34 trillion in student debt, up 6.6% since last year according to the New York Federal Reserve. Last year’s graduating class alone harbors an average of $37,172 in student debt; these numbers have increasingly necessitated options for affordable rent for recent graduates.

“Now with the highest amount of student debt in history, these graduates are seeking affordable rent more so than ever before,” shared Dan Marrello, TOWN Managing Director of Leasing. “Manhattan has to remain a competitive choice while neighborhoods in Brooklyn and other outer boroughs are offering lower rent. These factors have led to the uptick in the number of concessions and price decreases in the past few months.”

In May, the average number of listings offering a concession was 2,200, and the number of listings registering a price decrease increased by 15.3% since April. 

Examining the Manhattan-wide market from a year over year standpoint reveals a median price decrease of 1.6%, an inventory increase of 8.4%, and number of new listings increase of 9.3%.  

The city has also registered an uptick in number of renters leaving the Upper West Side in favor of the Lower East Side and the East Village. The volume of transactions and number of new listings in these areas have increased since this time last year, while in the Upper West Side they have dropped substantially. This May, 523 new rentals hit the East Village market and 212 hit the Lower East Side compared to 420 and 159 last year, respectively; 596 hit the Upper West Side compared to 924 last year.

With credible data and clear-cut methodology, the TOWN Leasing Report is based on an amalgamation of TOWN Residential internal database, open listings and exclusives as broadcast through industry subscription services with the omission of properties priced over $10,000.

TOWN Data | April Leasing Report

TOWN Residential, New York’s leading luxury real estate services firm, is proud to share the latest installment of the TOWN Leasing Report – a monthly update on residential leasing trends and pricing.   

This April, the overall Manhattan rental market closed at a median price of $3,573. Reflecting no change since last month, the average price per square foot was again $64. The median price of a one-bedroom unit was $3,479, and the average was $3,518.  

Barring a slight decrease in the three-bedroom segment, April again saw slight month over month average price increases across all bedroom types, now for the third month in a row. Since December 2016, the market has registered an overall 2.4% average price increase.

“In typical seasonal fashion, we have experienced a substantial uptick in demand since April 1st,” shared Dan Marrello, TOWN Managing Director of Leasing. “While supply still seems to be outpacing demand, I expect to see concessions and incentives start to dwindle as we head into the peak renting season.” 

Both median doorman and non-doorman prices increased over the course of the month by 2.49% and 2.37% respectively. Since March, total inventory increased by 5.3%, and listings with rent drops increased by a slight 1.2%.  

Following the trend in March, the West Village again had the highest average price per square footage at $85 per square foot, followed by Tribeca at $80 per square foot. Compared to the other neighborhoods, the Upper East Side had by far both the highest total inventory and the most new rentals hit the market; 2,328 and 944 units respectively.  

With credible data and clear-cut methodology, the TOWN Leasing Report is based on an amalgamation of TOWN Residential internal database, open listings and exclusives as broadcast through industry subscription services with the omission of properties priced over $10,000.

TOWN Data | March Leasing Report

TOWN Residential, New York’s leading luxury real estate services firm, is proud to share the latest installment of the TOWN Leasing Report – a monthly update on residential leasing trends and pricing.

Despite a 1% year over year decrease, the Manhattan market again saw slight month over month average price increases across all bedroom mixes, now for the second month in a row. Since February, the average price increased by 1.1% for this March’s total of $3,539. Over the course of the same period, the average price per square foot increased by a slight 0.3% to $64 per square foot. 

Since February, average doorman prices increased by just over 1% for studios through 3-bedrooms, but decreased by 2.8% in the 4+bedroom segment. On the whole, non-doorman rates increased by an average of 2.5% since the previous month.

During March, the market saw an overall 11.3% month over month increase in listings with rent drops. Total inventory increased steadily by 8.5% during the same period.

“Recently, we have seen a decrease in those rental concessions like free rent and owner paid that had been steadily growing over the past few months,” shared Dan Marrello, TOWN Managing Director of Leasing. “We can credit this to the busy rental season that landlords are now anticipating.”

With credible data and clear-cut methodology, the TOWN Leasing Report is based on an amalgamation of TOWN Residential internal database, open listings and exclusives as broadcast through industry subscription services with the omission of properties priced over $10,000.