Photo: Edgar Zuniga Jr./Flickr
Manhattan rental prices increased more often than they decreased last year, but the changes weren’t as drastic as they had been in 2015, according to a new market report by New York brokerage MNS. And while prices were mostly up, there were also more units for sale in 2016 than the previous year.
The largest price gains year-over-year were recorded in the non-doorman studio submarket, where prices increased 4.2 percent to $2,541 from last year’s $2,438. While this was the largest increase this year, it was below last year’s 5.1 percent increase — and that was not even the largest increase recorded last year. One-bedroom non-doorman units also recorded a notable 3.1 percent increase in price to $3,234 from 2015.
Both doorman and non-doorman two-bedroom units were the only submarkets to record year-over-year price declines. The price of non-doorman two-bedroom units fell 0.5 percent to $4,288 from last year. While doorman two-bedroom units recorded a 1.2 percent drop from last year to $6,170.
The average unit price was at its highest in August, and lowest in February — $3,232.33 and $2,918.34, respectively. In April, the average price rose above $3,000 and it did not fall below that price for the rest of 2016. Non-doorman units increased by an average of 2.3 percent, while doorman units recorded an average decrease of 0.3 percent in price.
The two largest price gains in 2016 were recorded in the non-doorman submarket in the Financial District, where studio units soared 17.3 percent year-over-year to $3,166. Meanwhile, one-bedroom non-doorman units in the Financial District rose 7.6 percent to $3,855.
Conversely, the largest price decrease was also recorded in the Financial District, where two-bedroom, non-doorman unit prices fell 7.6 percent to $5,121 from last year.
Manhattan’s rental inventory grew by 12 percent year-over-year to 9,807 units. After increasing by almost 18 percent in 2015, doorman inventory fell 3.1 percent this year. Meanwhile, non-doorman inventory rose 33.4 percent in 2016.
2016 proved to be “an exciting” year for real estate in Manhattan, says MNS in the report. With the impending L train shutdown in Williamsburg, and the addition of the 2nd Avenue subway line, it remains to be seen how developers might “take advantage” of these changes in 2017.
Click here to read the entire report.