Manhattan rentals continue to set new records. A May report from Douglas Elliman finds that prices averaged $4,571, up 1.6 percent from April and 7.6 percent year-over-year. Also, that marked the third time in the past four months the rentals in the borough hit a new all-time high.
Studio apartments saw the biggest increases by property type from 12 months ago, surging by 9.5 percent on average to $3,400. One, two and three bedrooms rose by 7.1 percent, 7.9 percent and 8.4 percent, respectively. By submarkets, the Eastside enjoyed the biggest increase of 10.5 percent to average $4,210.
Vacancy went down modestly by two basis points year-over-year to 2.25 percent.
Recommended For You
Meanwhile, the number of new leases plunged by four percent to 6,800, which is the first time signings have seen a year-over-year basis decline in 14 months.
"Although listing inventory surged by 31.2% to 11,714, up 57.9% from five years ago, it has not kept pace with the 210.5% rise in new lease signings over the same timeframe," Douglas Elliman said in a report.
Additionally, the real estate firm posted rental data for the Brooklyn and Northwest Queens markets. Brooklyn's median prices inched up by 1.4 percent to $3,650, while Northwest Queens enjoyed a larger gain of 6.6 percent to $3,625.
The report comes as NYC's Fairness in Apartment Rental Expenses (FARE) Act, which bars landlords from passing on broker fees to tenants, took effect in recent days. While it aims to save renters thousands in upfront costs as the city deals with a housing affordability crisis, some argue the act will result in surging rents. However, a study from StreetEasy found that properties that switched over to broker-fee-less rentals ahead of FARE only raised rents by 0.7 percent. So the new law may only have a modest impact.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
Anthony Russo
Anthony Russo has been contributing to GlobeSt. since July 2024. Along with CRE, his financial background expands to capital markets, the economy, and consumer issues. Previously, he has written for CapitalWatch and was a senior reporter for The US Sun.
