Photo: Elvert Barnes/Flickr
New York City renters have often found relief from the rising Manhattan rents in the outer boroughs, notably Brooklyn. However, as prices continue to rise at a quickening pace in many hot markets like Williamsburg, Brooklyn and Long Island City, Queens, renters could soon be priced back into the Manhattan market, where rents are stabilizing, according to a new market report by New York brokerage MNS.
Last month Manhattan rental prices recorded a 0.28 percent decrease to $3,923.03, which is down from the $3,934.12 the previous month. December’s rental price was only 0.31 percent up from last year. Soho recorded a 14.6 percent year-over-year increase — the largest increase of all Manhattan neighborhoods. While Tribeca recorded a 7.5 percent increase from last year. Both neighborhoods also have tight inventories, says MNS.
Chelsea and Harlem recorded the largest monthly changes in December. Two-bedroom apartments in Chelsea decreased just over 8 percent from the previous month. Meanwhile, in Harlem, sizeable price drops were recorded in doorman buildings across all unit sizes — studios decreased 6.4 percent, one-bedroom units decreased 6 percent, and two-bedroom units decreased 6.3 percent. It is also interesting to note that there are far more non-doorman buildings in Harlem. Buildings with doormen comprise only 26 percent of the total units in Harlem.
Inventory gains were also recorded Chelsea and Harlem, with both neighborhoods recording a just over 21 percent increase in active listings.
“2017 is bound to be an exciting year for Manhattan real estate,” MNS said in its release.
The Manhattan market was greatly affected by an “opening up” of the outer-borough markets, where many renters fled to escape the high rental prices in Manhattan. Now, however, as prices in those markets have continued to rise, they are on par with Manhattan rental prices, says MNS.
“Perhaps 2017 rental reports will illustrate the irony of renters being priced out of Brooklyn and into Manhattan.”
Click here to read the entire report.