Introduction

MNS is proud to present the April 2012 edition, and the 6th year of our Manhattan Rental Market Report™, research on the city’s rental rates published on a monthly basis.

April rents are looking a lot like March despite a 6% increase in the number of listings we analyzed. The number of doorman listings increased 4%, and non-doorman listings increased 8%. The biggest turn-over of leases was on the Upper West and Upper East Sides, resulting in a small 0.3% drop in rents. We tracked a decrease in the number of rental listings in the Financial District and Murray Hill, and no change in the number of listings in Midtown West. These areas are the neighborhoods that seem to be where renters are gravitating towards.

Overall, April rents were up an average of 0.4% ($17) compared to March. Comparing rents from last month, studios were up 0.1%, while one and two-bedrooms were up 0.6% on average. Little movement from March to April is typical of the start of the spring season, although last April, we reported a rental decrease of 0.6% overall. We look towards the early summer months where last June we reported an overall 2% monthly increase from May 2011.

Year-over-year rents for non-doorman two-bedrooms will give renters the biggest sticker shock this month at an 11.6% increase on average. Doorman two-bedrooms with an average increase of 7.4%, is not a small chunk of change either. Doorman studios had the smallest annual increase at 4.2% on average. Any renter up for renewal on a two-year lease will see average rent increase of 14% for studios ($300), 12% for one-bedroom units ($350), and 15% ($600) for two-bedrooms when compared to average rents from April 2010.

A Quick Look

• April’s Approach: Overall, April rents were up an average of 0.4% ($17) compared to March. Comparing rents from last month, studios were up 0.1%, while one and two-bedrooms were up 0.6% on average.
• Non-Renewals Add to Inventory: The biggest turn-over of leases was on the Upper West and Upper East Sides, resulting in a small 0.3% drop in rents. We tracked a decrease in the number of rental listings in the Financial District and Murray Hill, and no change in the number of listings in Midtown West. These areas are the neighborhoods that seem to be where renters are gravitating towards.
• Two Year Leases: Any renter up for renewal on a two-year lease will see average rent increase of 14% for studios ($300), 12% for one-bedroom units ($350), and 15% ($600) for two-bedrooms when compared to average rents from April 2010.

Greatest Changes Since March:

Non-doorman studios - East Village - Up 6.8% ($133)

Non-doorman one-bedrooms - Harlem - Down 3.8% ($70)

Non-doorman two-bedrooms - Midtown West - Up 2.9% ($100)

Doorman studios - Battery Park City - Down 3.2% ($91)

Doorman one-bedrooms - Murray Hill - Up 2.9% ($98)

Doorman two-bedrooms - Murray Hill - Up 1.6% ($87)

Year-over-year Changes:

Notable Trends:

Where Prices Decreased

Harlem - Non-doorman one-bedrooms (-3.84%)

Upper West Side - Non-doorman studios (-0.3%), non-doorman one-bedrooms (-1.2%), doorman onebedrooms (-1.5%), doorman two-bedrooms (-0.2%)

Upper East Side - Non-doorman studios (-0.9%), doorman studios (-2.1%), doorman one-bedrooms (-2.12%), non-doorman two-bedrooms (-0.4%)

Midtown West - Non-doorman studios (-4.9%), doorman studios (-0.6%), non-doorman one-bedrooms (-0.7%)

Midtown East - Doorman studios (-2.8%), non-doorman two-bedrooms (-0.7%)

Murray Hill - Non-doorman studios (-0.3%), non-doorman one-bedrooms (-2.3%)

Gramercy Park - Doorman studios (-3.2%), non-doorman two-bedrooms (-0.7%)

Greenwich Village - Doorman studios (-0.9%)

East Village - Doorman studios (-0.7%)

SoHo - Non-doorman one-bedrooms (-1%)

Lower East Side - Non-doorman studios (-1.4%), doorman one-bedrooms (-1.9%)

TriBeCa - Non-doorman two-bedrooms (-0.3%)

Financial District - Non-doorman one-bedrooms (-1%), non-doorman two-bedrooms (-1.1%)

Battery Park City - Doorman studios (-3.2%), doorman one-bedrooms (-0.1%), doorman two-bedrooms (-0.5%)

Where Prices Increased

Harlem - Non-doorman studios (1.9%), doorman studios (2.8%), doorman one-bedrooms (2.0%), non-doorman two-bedrooms (0.6%), doorman two-bedrooms (1.3%)

Upper West Side - Doorman studios (2.0%), non-doorman two-bedrooms (1.8%)

Upper East Side - Non-doorman one-bedrooms (3.1%), doorman two-bedrooms (0.6%)

Midtown West - Doorman one-bedrooms (1.7%), non-doorman two-bedrooms (2.9%), doorman twobedrooms (1.3%)

Midtown East - Non-doorman studios (2.9%), non-doorman one-bedrooms (0.1%), doorman one-bedrooms (0.3%), doorman two-bedrooms (0.2%)

Murray Hill - Doorman studios (0.4%), doorman one-bedrooms (2.9%), non-doorman two-bedrooms (1.1%), doorman two-bedrooms (1.6%)

Chelsea - Non-doorman studios (0.1%), doorman studios (1.6%), non-doorman one-bedrooms (1.5%), doorman one-bedrooms (1.3%), non-doorman two-bedrooms (1.1%), doorman two-bedrooms (1.0%)

Gramercy - Non-doorman studios (1.9%), non-doorman one-bedrooms (1.9%), doorman one-bedrooms (1.3%), doorman two-bedrooms (0.3%)

Greenwich Village - Non-doorman studios (2.4%), non-doorman one-bedrooms (0.4%), doorman one-bedrooms (1.9%), non-doorman two-bedrooms (0.8%), doorman two-bedrooms (0.7%)

East Village - Non-doorman studios (6.8%), non-doorman one-bedrooms (2.3%), doorman one-bedrooms (0.5%), non-doorman two-bedrooms (1.4%), doorman two-bedrooms (0.9%)

SoHo - Non-doorman studios (2.6%), doorman studios (0.6%), doorman one-bedrooms (0.6%), non-doorman two-bedrooms (0.9%), doorman two-bedrooms (0.9%)

Lower East Side - Doorman studios (1.3%), non-doorman one-bedrooms (1.3%), non-doorman two-bedrooms (2.0%), doorman two-bedrooms (0.7%)

TriBeCa - Non-doorman studios (1.6%), doorman studios (1.3%), non-doorman one-bedrooms (1.2%), doorman one-bedrooms (1.3%), doorman two-bedrooms (0.7%)

Financial District - Non-doorman studios (0.2%), doorman studios (1.5%), doorman one-bedrooms (0.4%), doorman two-bedrooms (0.7%)

Tips for Renters

Deal Finder: If you took our advice last year and found some share deals in Harlem, consider living solo this year in this vibrant neighborhood. Non-doorman studio rents have decreased from last year an average 7% ($110), while doorman studios are down 17% ($292).

Rental Relief: Again this month FiDi showed the largest annual rent decrease, down 0.8% overall. Although we tracked rents still down from last year, popular doorman buildings are averaging just $50 less than last April. We expect May’s rents to increase considering there is 13% less inventory on the market this month.

Tough Competition: It seems non-doorman buildings want a piece of the action as well. The East Village had the largest monthly increase in the non-doorman studio market with an increase of 6.8% ($133) and nondoorman one-bedrooms at 2.5% ($71). Similarly, the Lower East Side had a 2% ($72) increase from last month in non-doorman two-bedrooms.

Mean Manhattan Rental Prices

The Mean Rental Price graphs illustrate average monthly rents for studios, one-bedrooms and two-bedrooms in doorman and non-doorman buildings for the month of April 2012. Graphs tracking citywide and neighborhood price changes over a rolling 13-month period follow.