Rents Decline for Every Apartment Size in Manhattan
Rents fell last month for Manhattan apartments of all sizes, the 1st across-the-board price decline in at least 4 years, as a construction boom brought more buildings to market and allowed some tenants to leave for bigger or newer units.
For studios, which held their own last year while costs for bigger apartments slid, the median rent dropped 2.6%, appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate said in a report Thursday.
It was the biggest Y-Y decrease since the firms started tracking the data in Y 2012. The median price of studios last month was $2,500, the lowest it has been since January 2015.
Until now, studios — smaller, cheaper and in demand among young job-seekers in Manhattan — had better withstood the pressures from the wave of apartment construction that’s kept a lid on prices across the market. Now, even those units are getting reductions as landlords fret about rising vacancies and renters at all price levels sense they have the leverage to demand a better deal.
Apartments available for rent at the end of February numbered 6,872, a jump of almost 12% from a year earlier. The number of new leases fell 28% last month to 3,634.
“In the months of January and February, we had customers requesting three to four months free, which is pretty unheard of,” said a broker with Douglas Elliman.
Last month, landlords pared ed an average of 3.3% off their asking prices, compared with 2.5% a year earlier, according to Miller Samuel and Douglas Elliman. On top of that, they offered concessions such as a free month or payment of broker’s fees on 26% of all new leases, the second highest share in the firm’s records.
Median rents for 2-bedroom apartments fell 5.2% from a year earlier to $4,500, the firms said. One-bedroom costs slipped 1.3% to $3,350, and the median for units with 3 bedrooms or more dropped 3.7% to $6,031.
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