Rents on the Rise in New York City

Rents on the Rise in New York City

Key facts for November 2016:

  • Manhattan’s median monthly rent grew 1.9 percent year-over-year to $3,245, led by 6.4 percent growth in Upper Manhattan. Upper Manhattan rentals also had the smallest share of inventory discounted (29.9 percent).
  • Median resale price in Manhattan rose 0.5 percent year-over-year to $979,791, the slowest pace of price growth since January 2011.
  • Brooklyn’s median rent increased 0.9 percent year-over-year to $2,870. Median rent in the North Brooklyn submarket declined 1.9 percent. North Brooklyn had the highest share of rentals discounted last month (48 percent).
  • Brooklyn’s median resale price grew 3.6 percent year-over-year to $562,663. North Brooklyn was the only submarket in the borough where resale prices declined (-2.8 percent).

streeteasy_november_market_report_manhattan

The fall season yielded little relief for renters in Manhattan, where rent growth outpaced resale price growth in November, according to the November 2016 StreetEasy® Market Reportsi.

In Manhattan, median monthly rent grew 1.9 percent year-over-year to $3,245, as measured by the StreetEasy Rent Indicesii. Median rent in the Upper Manhattan submarket remained the least expensive in the borough, but increased the most of any submarket in Manhattan and Brooklyn, rising 6.4 percent year-over-year to $2,449iii. Rents grew the least in the Upper East Side submarket, up 0.4 percent year-over-year to $2,714.

Nearly 43 percent of rental units in Manhattan received a discount in November. Renters shopping in Upper Manhattan neighborhoods, such as Harlem, Washington Heights and Inwood, were the least likely to see units discounted – less than a third of rental inventory in the area was discounted in November (29.9 percent). This was the lowest share of rental discounts among Manhattan submarkets. The Downtown submarket had the most discounts at a share of 47.3 percent, followed by the Upper West Side submarket (47.2 percent).

streeteasy_november_market_report_brooklyn

In Brooklyn, median rent increased 0.9 percent year-over-year to $2,870, the slowest pace of rent growth since November 2010. Rents in the South Brooklyn submarket remained the least expensive in the borough, but rose 4.3 percent to $1,709. Those seeking rentals in North Brooklyn received a little relief, with rents declining 1.9 percent to $3,079. The median rent in North Brooklyn, which is comprised of Williamsburg, East Williamsburg and Greenpoint, remained the most expensive in Brooklyn, but was the only submarket in either borough where rents declined.

Fewer rentals received discounts in Brooklyn than Manhattan, with 41.7 percent of Brooklyn rental inventory discounted in November. Nearly half of all rental listings in North Brooklyn (48 percent) were discounted last month, followed by Northwest Brooklyn (46 percent). South Brooklyn had the smallest share of rental inventory discounted (30.8 percent).

The sales market cooled in November, with the Manhattan median resale price rising only 0.5 percent year-over-year to $979,791 – about a quarter of the rate of rent growth. This was the slowest pace of price growth since January 2011. Resale prices in Upper Manhattan remained the fastest-growing among submarkets in the borough, up 5.9 percent year-over-year. Midtown resale prices increased 1.1 percent, while the Upper West Side submarket remained flat year-over-year and resale prices in both Downtown and Upper East Side declined 0.6 percent.

In Brooklyn, median resale price rose 3.6 percent year-over-year to $562,663, the slowest pace of price growth since September 2012. Resale prices in the Prospect Park submarket jumped 15.9 percent year-over-year to $881,672, surpassing North Brooklyn as the most expensive submarket in the borough.

“Heading into winter, the rental market typically slows down and landlords are eager to fill vacancies, presenting renters with potential opportunities to negotiate,” said StreetEasy economist Krishna Rao. “This year, Upper Manhattan is bucking that trend. If you are shopping for a rental apartment in that area, don’t expect competition to ease up much this winter. Come prepared with checkbook in hand.”

The complete StreetEasy Market Reports for Manhattan and Brooklyn with additional analysis, neighborhood data and graphics can be viewed at streeteasy.com/blog/market-reports.

Region

 November 2016

StreetEasy Price

 Index

Annual

Change

November 2016

StreetEasy Rent

Index

Annual

Change

Manhattan

$979,791

0.5%

$3,245

1.9%

Downtown

$1,212,793

-0.6%

$3,652

2.3%

Midtown

$853,301

1.1%

$3,379

2.2%

Upper West

Side

$1,056,424

0.0%

$3,129

1.2%

Upper East Side

$978,725

-0.6%

$2,714

0.4%

Upper

Manhattan

$633,144

5.9%

$2,449

6.4%

Brooklyn

$562,663

3.6%

$2,870

0.9%

North Brooklyn

$859,236

-2.8%

$3,079

-1.9%

Northwest

Brooklyn

$846,686

3.7%

$3,058

1.2%

Prospect Park

$881,672

15.9%

$2,838

2.0%

South Brooklyn

$422,259

5.3%

$1,709

4.3%

East Brooklyn

$474,388

0.5%

$2,484

3.6%

About StreetEasy:
StreetEasy is New York City’s leading local real estate marketplace on mobile and the web, providing accurate and comprehensive for-sale and for-rent listings from hundreds of real estate brokerages throughout New York City and the major NYC metropolitan area. StreetEasy adds layers of proprietary data and useful search tools to help home shoppers and real estate professionals navigate the complex real estate markets within the five boroughs of New York City, as well as Northern New Jersey and the Hamptons.

Launched in 2006, StreetEasy is based in the Flatiron neighborhood of Manhattan. StreetEasy is owned and operated by Zillow Group (NASDAQ: Z and ZG).

StreetEasy is a registered trademark of Zillow, Inc.

i The StreetEasy Market Reports are a monthly overview of the Manhattan and Brooklyn sales and rental markets. Every three months, a quarterly analysis is published. The report data is aggregated from public recorded sales and listings data from real estate brokerages that provide comprehensive coverage of Manhattan and Brooklyn, with most metrics dating back to 1995 in Manhattan and 2005 in Brooklyn. The reports are compiled by the StreetEasy Research team. For more information, visit http://streeteasy.com/blog/market-reports/. StreetEasy tracks data for all five boroughs within New York City, but currently only produces reports for Manhattan and Brooklyn.
ii Median resale prices are measured by the StreetEasy Price Indices. Also referred to as the StreetEasy Manhattan Price Index (MPI) and StreetEasy Brooklyn Price Index (BPI), the metrics are monthly indices that track changes in resale prices of condo, co-op, and townhouse units. Each index uses a repeat-sales method of comparing the sales prices of the same properties since January 1995 in Manhattan and January 2005 in Brooklyn. Given this methodology, each index accurately captures the change in home prices by controlling for the varying composition of homes sold in a given month. Data on sales of homes is sourced from the New York City Department of Finance. Full methodology here: http://streeteasy.com/blog/methodology-streeteasy-price-indices/
iii StreetEasy’s Upper Manhattan submarket is comprised of the following neighborhoods: East Harlem, West Harlem, Central Harlem, Inwood, Washington Heights, Hamilton Heights and Manhattanville.

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Shayne Heffernan Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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