Photo: Bosc d’Anjou/Flickr
Rental prices in New York City remain elevated, but growth is leveling off, according to Douglas Elliman Real Estate’s January 2016 Market Report on Manhattan, Brooklyn and Queens.
Trends across the three boroughs varied, with modest year-over-year growth in Manhattan and Brooklyn and a decline in Queens.
Here’s a look at how rental markets in each borough fared in January:
In Manhattan, the median rental price rose 1.5 percent year-over-year and rents increased for the 23rd consecutive month. The median price was $3,350, up from $3,299 in January 2015. Still, the rate of rental price growth has slowly been declining, with January marking the fifth month in a row in which the rate of median rental price growth fell.
Landlord concession rates are the highest they have been in five years, and Dottie Herman, President & CEO of Douglas Elliman says this trend is playing out across all boroughs.
About 1.2 percent of leases were discounted this year and Manhattan is seeing its second highest vacancy rate in over nine years. The average rental price for luxury listings (top 10 percent) dropped 6.1 percent in January.
In Brooklyn, rental prices remain high, but they are not growing at the same rate seen in past years. Year-over-year, median prices rose just 0.8 percent. The median price was $2,923, up from $2,901 in January 2015.
Inventory rose 2.2 percent due in part to new development units hitting the market. Median luxury prices dropped just under one percent in January, but have fallen 6.1 percent since last year.
The Queens median rental price decreased 4.8 percent to $2,767 in January from $2,905 in the same period last year. Meanwhile, inventory increased 72.5 percent year-over-year.
But in January the median rental price actually rose 8.5 percent month-over-month. The number of new leases rose 53.1 percent over December while days on the market decreased by 5.8 percent from 52 in December to 49 in January.
The same holds true for Queens luxury listings. Although luxury median rental prices are down 10.6 percent over last year, they rose 7.7 percent month-over-month.
Elliman works with Miller Samuel, an independent appraisal firm, to provide analysis of residential price and sales trends.
Check out BuzzBuzzHome’s Market Snapshot tool for more New York real estate data.