Manhattan Rental Market Report

Updated: March 2012

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Table of Contents

• Introduction
• A Quick Look
• Mean Manhattan Rental Prices
• Manhattan Price Trends
• Neighborhood Price Trends
  • Harlem
  • Upper West Side
  • Upper East Side
  • Midtown West
  • Midtown East
  • Murray Hill
  • Chelsea
  • Gramercy Park
  • Greenwich Village
  • East Village
  • SoHo
  • Lower East Side
  • TriBeCa
  • Financial District
  • Battery Park City
• The Report Explained

Introduction

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

We typically see some relief in the early months of the year, but rents in 2012 are not letting up, despite a 4.3% increase in inventory. Rents are holding very steady and the graphs for the first quarter of 2012 are virtually flat, up just 0.1% from last February overall. This month, we tracked one-bedroom apartments with a 0.3% increase ($10), while studios and two-bedrooms slid down a millimeter to 0.1% ($4) from February.

We began 2012 with decreases of about $12, last month it was just $8, and with spring officially here, March rents overall were back up an average of $4. Although up just 6% from last March, we are still swallowing a $250 increase in doorman buildings and a $180 increase in non-doorman buildings.

On an annual basis, the largest increase in rents occurred in two-bedroom apartments at 9.0%, while the smallest year-over-year changes occurred in studios at 3%. However, March 2011 versus March 2010, those increases were the complete opposite. Last March, we reported a 5% increase in two-bedrooms, and more than an 11% increase in studios, reflected a major shift over the past 12 months in the rental demand for two-bedrooms. One-bedrooms remained with a steady 7% increase over the 24 months.

A Quick Look

• Flat-liner: Rents are holding very steady and the graphs for the first quarter of 2012 are virtually flat, up just 0.1% from last February overall. This month, we tracked one-bedroom apartments with a 0.3% increase ($10), while studios and two-bedrooms slid down a millimeter to 0.1% ($4) from February.
• The 24-month look back: On an annual basis, the largest increase in rents occurred in two-bedroom apartments at 9.0%, while the smallest year-over-year changes occurred in studios at 3%. In March 2011, we reported a 5% increase in two-bedrooms, and more than an 11% increase in studios, reflected a major shift over the past 12 months in the rental demand for two-bedrooms.
• Spring is upon us: Spring is officially here and March rents overall were back up an average of $4. Although up just 6% from last March, we are still swallowing a $250 increase in doorman buildings and a $180 increase in non-doorman buildings.

Greatest Changes Since January:

Non-doorman studios – East Village – Down 6.5% ($136)

Non-doorman one-bedrooms – Upper West Side - Up 4.9% ($124)

Non-doorman two–bedrooms – Harlem – Down 5.2% ($118)

Doorman studios – Midtown West – Up 4.1% ($107)

Doorman one-bedrooms – Harlem – Up 2.7% ($57)

Doorman two-bedrooms – Lower East Side– Up 1.3% ($62)

Year-over-year Changes

Notable Trends:

Where Prices Decreased

Harlem— Non-doorman studios (-1.0%), doorman studios (-1.9%), non-doorman two-bedrooms(-5.2%)

Upper West Side— Non-doorman studios (-2.6%)

Upper East Side— Non-doorman one-bedrooms (-2.4%)

Midtown West— Non-doorman studios (-3.3%), doorman one-bedrooms (-0.5%)

Midtown East— Non-doorman one-bedrooms (-3.0%), non-doorman two-bedrooms (-1.4%), doorman two-bedrooms (-0.5%)

Murray Hill— Non-doorman studios (-1.5%), doorman studios (-1.4%), doorman one-bedrooms (-1.3%)

Chelsea— Doorman studios (-1.6%), non-doorman one-bedrooms (-2.4%)

Gramercy Park— Non-doorman two-bedrooms (-1.9%)

Greenwich Village— Non-doorman one-bedrooms (-2.8%), doorman one-bedrooms (-0.1%), non-doorman two-bedrooms (-1.6%)

East Village— Non-doorman studios (-6.5%), doorman studios (-2.9%), doorman one-bedrooms (-2.2%), doorman two-bedrooms (-1.0%)

SoHo— Non-doorman two-bedrooms (-0.1%), doorman two-bedrooms (-0.1%)

Lower East Side— Non-doorman studios (-1.5%), doorman studios (-4.0%), doorman one-bedrooms (-1.8%)

TriBeCa— Non-doorman studios (-0.3%), doorman studios (-1.0%), non-doorman two-bedrooms (-0.4%), doorman two-bedrooms (-0.2%)

Financial District— Non-doorman studios (-0.2%), doorman studios (-1.6%), non-doorman two-bedrooms (-1.8%), doorman two-bedrooms (-0.7%)

Battery Park City— Doorman two-bedrooms (-0.5%)

Where Prices Increased

Harlem— Non-doorman one-bedrooms (4.8%), doorman one-bedrooms (2.7%), doorman two-bedrooms (0.6%)

Upper West Side— Non-doorman studios (1.9%), non-doorman one-bedrooms (4.8%), doorman one-bedrooms (1.9%), non-doorman two-bedrooms (2.4%), doorman two-bedrooms (0.1%)

Upper East Side— Non-doorman studios (1.0%), doorman studios (3.8%), doorman one-bedrooms (0.2%), non-doorman two-bedrooms (2.2%), doorman two-bedrooms (0.6%)

Midtown West— Doorman studios (4.1%), non-doorman one-bedrooms (2.1%), non-doorman two-bedrooms (1.7%), doorman two-bedrooms (0.3%)

Midtown East— Non-doorman studios (4.1%), doorman-studios (1.0%), doorman one-bedrooms (0.3%)

Murray Hill— Non-doorman one-bedrooms (2.9%), non-doorman two-bedrooms (2.5%), doorman two-bedrooms (1.3%)

Chelsea— Non-doorman studios (0.3%), doorman one-bedrooms (1.4%), non-doorman two-bedrooms (0.7%), doorman two-bedrooms (1.2%)

Gramercy— Non-doorman studios (1.4%), doorman studios (0.6%), non-doorman one-bedrooms (1.2%), doorman one-bedrooms (1.8%), doorman two-bedrooms (0.8%)

Greenwich Village— Non-doorman studios (0.8%), doorman studios (2.8%), doorman two-bedrooms (0.3%)

East Village— Non-doorman one-bedrooms (1.9%), non-doorman two-bedrooms (0.4%)

SoHo— Non-doorman studios (1.5%), doorman studios (1.9%), non-doorman one-bedrooms (0.1%), doorman one-bedrooms (1.1%)

Lower East Side— Non-doorman one-bedrooms (1.3%), non-doorman two-bedrooms (1.1%), doorman two-bedrooms (1.3%)

TriBeCa— Non-doorman one-bedrooms (1.1%), doorman one-bedrooms (0.3%)

Financial District— Non-doorman one-bedrooms (0.1%), doorman one-bedrooms (0.4%)

Battery Park City— Doorman Studios (0.4%), doorman one-bedrooms (0.9%)

Tips for Renters

Where to renew: FiDi showed the largest annual rent decrease, down 2.4% overall. A doorman studio will give you about $170 to renegotiate that lease from last year, so you can stay put and enjoy your luxury space in a vibrant neighborhood.

Rental Relief: Overall, the East Village had the biggest drop from February, down 1.7% overall. The most rent relief this month here was studio apartments, down 4.7% with a savings of about $100. With a 2% drop in inventory though, these savings will not be around for long.

Best Deal: Head to Gramercy for a non-doorman one or two bedroom this month. Year-over-year rents in Gramercy are actually down 9%. The biggest annual drops are in non-doorman one-bedrooms and two-bedrooms, a savings of $200 and $500 respectively.

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 March 2012. Graphs tracking citywide and neighborhood price changes over a rolling 13-month period follow.

The Report Explained

The Manhattan Rental Market Report™ is the only report that compares fluctuation in the city’s rental data on a monthly basis. It is an essential tool for potential renters seeking transparency in the NYC apartment market and a benchmark for landlords to efficiently and fairly adjust individual property rents in Manhattan.

The Manhattan Rental Market Report™ is based on data cross-sectioned from over 10,000 currently available listings located below 155th Street and priced under $10,000, with ultra-luxury property omitted to obtain a true monthly rental average. Our data is aggregated from the MNS’s proprietary database and sampled from a specific mid-month point to record current rental rates offered by landlords during that particular month. It is then combined with information from the REBNY Real Estate Listings Source (RLS), OnLine Residential (OLR.com) and R.O.L.E.X. (Real Plus).

Contact us now: 212.475.9000

Note: All market data is collected and compiled by MNS NY’s marketing department. The information presented here are intended for instructive purposes only and has been gathered from sources deemed reliable, though it may be subject to errors, omissions, changes or withdrawal without notice.

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