Photo: Melinda Rathnayake/Flickr
The Manhattan resale housing market cooled during the third quarter of 2016 as resale prices rose at their slowest pace since the fourth quarter of 2010. Meanwhile, for the first time in four years, Manhattan’s median rent rose at a faster pace than resale prices, according to new data released Friday from the listing site StreetEasy.
Manhattan’s median resale price increased 1.1 percent from last year to $990,805. This marked the 11th consecutive quarter of slowing annual price growth.
Resale prices recorded the highest gains in Upper Manhattan and Midtown Manhattan, where they increased 3.6 percent and and 2.2 percent year-over-year.
Even though Downtown Manhattan was the most expensive Manhattan submarket price-wise, it recorded a 0.5 percent decrease in price from 2015.
Meanwhile, Manhattan’s median rent rose nearly 3 percent from last year to $3,309. This was the first time in four years rent growth outpaced resale price growth, according to StreetEasy.
Upper Manhattan recorded the largest gains in rent growth in the borough during the third quarter, rising 4 percent year-over-year. Meanwhile, the Upper West Side recorded 2.1 percent price growth from last year — the lowest of all of Manhattan’s submarkets.
StreetEasy estimates Manhattan’s “tipping point” to be 9.2 years. The tipping point is defined as the estimated number of years it would take for the costs of owning to equal rental costs of a comparable unit in the same area. Manhattan’s tipping point is three times higher than the 3.6 years estimated in Brooklyn.
In Upper Manhattan, the tipping point is just 3.4 years, while it rises to 19 years in Downtown Manhattan.
Looking forward, StreetEasy predicts Manhattan rents will continue to outpace the growth of resale prices. It estimates a 3.9 percent increase in rents next year, compared to a 1.2 increase in resale prices.
Manhattan’s resale market currently provides “strong opportunities” for prospective buyers, says StreetEasy.
To view the entire StreetEasy report, click here.