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.