Although Manhattan’s median rent increased nearly 3 percent from last year to $3,320, new data indicates that the pace of Manhattan’s rent price growth has slowed dramatically over the course of the last 12 months.
Last month Manhattan’s rent price increased at the half the pace as it had in August 2015, according to new data from the online listing site StreetEasy. Rental prices recorded a nearly 6 percent increase last August.
Manhattan’s top tier — luxury rentals — recorded the lowest year-over-year rent growth out of all price tiers in August. Rent increased 2.2 percent in luxury rentals since last year, the lowest rent growth since September 2010.
Meanwhile rents for the least expensive Manhattan rentals increased 4.4 percent year-over-year in August, double the pace recorded in the luxury market.
Little change was recorded in the number of days Manhattan rentals stayed on market from last year. Rentals remained on the market for a median of 22 days, just one day longer than August 2015. Apartments in Upper Manhattan rented the fastest out of all of Manhattan’s rentals, at a median of 21 days.
Over the next 12 months, StreetEasy forecasts a 4.3 percent increase to $3,461 in Manhattan’s median rent. It anticipates Downtown Manhattan to have the most growth in rent, an increase of 5.4 percent.
“Rent prices in Manhattan have been rising mainly due to demand at the bottom of the market. However, a surplus of luxury units may give negotiating power to those looking within this higher price point,” says Krishna Rao, StreetEasy economist, in a blog post.
Rao described this past summer’s rental market as “calmer” than previous summers. The slowdown was expected, adds Rao, but points out it was at a faster than anticipated pace.
You can view the entire StreetEasy report here.