Manhattan Rental Market Report | MNS is Real Impact Real Estate

MANHATTAN
RENTAL MARKET REPORT

June 2017

Introduction

Prices in Manhattan increased by 0.38% or $14.99 between May and June, from $3,970.45 to $3,985.44.

A Quick Look

Prices in Manhattan increased by 0.38% or $14.99 between May and June, from $3,970.45 to $3,985.44. Studio non doorman prices increased by 1.5% or $38, from $2,526 to $2,564. Studio doorman prices increased by 0.8% or $26, from $3,072 to $3,097. One bedroom non doorman prices increased by 0.4% or $13, from $3,329 to $3,342. One bedroom doorman prices increased by 0.3% or $14, from $4,190 to $4,204. Two bedroom non doorman prices increased by 1.4% or $58, from $4,238 to $4,296. Two bedroom doorman prices were the only ones to decrease, and they did so by $53 or 0.8%, from $6,198 to $6,145. Over the last year, studio non doorman prices have increased by 1.5% or $37, studio doorman prices have decreased by 1.3% or $41, one bedroom non doorman prices have decreased by 0.5% or $17, one bedroom doorman prices have decreased by 2.9% or $127, two bedroom non doorman prices have decreased by 0.8% or $36, and two bedroom doorman prices have decreased by 3.1% or $194.
One noteworthy development this month is the increase in inventory that occurred in Harlem. Total units increased by 88 units or 9.7%, from 911 units in May to 999 units in June. While the doorman sector actually decreased in inventory from 225 units to 200 units, it was the non doorman sector that was responsible for this inventory increase (it increased from 686 units to 799 units). This is due in part to activity at 65 West 106th Street, an older 30 unit building. Additionally, 329 Pleasant Avenue had high levels of activity this month. This new development contains 20 units over 8 floors and started renting this month. Overall inventory levels in Manhattan increased by 522 units or 4.7% this month, from 11,033 units to 11,555 units. There were 6,204 units in non doorman buildings (53.7% of inventory) and 5,351 units in doorman buildings (46.3% of inventory).
Inventory on the Upper West Side is the second highest of the entire borough of Manhattan, containing 1,625 units (versus 1,960 on the Upper East Side). Because of this high level of inventory, price changes when broken down by unit size and service level are usually not severe. However, this month, some price changes were larger than others: studio non doorman and doorman prices decreased by 0.5% and 2.5%, respectively; one bedroom non doorman and doorman prices increased by 0.8% and 0.2%, respectively; and two bedroom non doorman and doorman prices increased by 5.5% and decreased by 2.5%, respectively. The reason for the larger two bedroom non doorman change was higher priced units on the market this month. For instance, in May there were 27 units priced below $3,000 a month and eight above $6,000. This month, there were 22 units priced below $3,000 a month and 19 above $6,000. There are several new developments in this area that have shaped the rental market, such as The Encore (built in 2016 and containing 258 units) and 21 West End Avenue (built in 2016 and containing 616 units). One West End and 207 West 79th Street are both condo buildings that were built in 2017 and have also had impacts on the area.
The greatest studio changes occurred in TriBeCa and on the Lower East Side this month. Non doorman units in TriBeCa increased by 6.1% and doorman units on the Lower East Side increased by 12.9%. The former can be attributed to low inventory levels (only 3 non doorman studios) and the latter can be attributed to the same cause (only 14 doorman studios). The largest one bedroom price changes this month occurred in TriBeCa, where non doorman prices decreased by 9.1% (again due to low inventory) and in Battery Park City, where prices increased by 3.9%. Higher priced units at buildings like 400 Chambers Street and 200 North End Avenue contributed to this price increase. The largest two bedroom price changes both occurred in SoHo, where non doorman prices increased by 7.5% and doorman prices decreased by 5.6%. SoHo inventory is even lower than TriBeCa inventory (127 units versus 155 units), so these large swings are to be expected.
There are several new developments that have emerged in Manhattan since last year. For instance, the American Copper Buildings, located in Murray Hill, were built in 2016 and contain 761 units. The Eugene, located in Hudson Yards, was built in 2017 and contains 844 units. Henry Hall is another new development in Hudson Yards that was built this year and contains 225 units. All of these new developments continue to make Manhattan one of the most exciting and sought after places to live on the globe.

A Quick Look

Notable Trends: Manhattan Highs and Lows (Average Prices)
Doorman Buildings (Average Prices)

Where Prices Decreased(monthly)

Battery Park City
Doorman Two-Bedroom -2.5%
Chelsea
Non-Doorman One-Bedroom -1.7% Non-Doorman Two-Bedroom -3.3% Doorman Studios -2.81% Doorman One-Bedroom -0.8%
East Village
Non-Doorman Studios -1.5% Non-Doorman One-Bedroom -1.5% Non-Doorman Two-Bedroom -3.81% Doorman Studios -5.4%
Financial District
Non-Doorman Studios -0.5% Non-Doorman One-Bedroom -2.7% Doorman One-Bedroom -1.3% Doorman Two-Bedroom -2.1%
Gramercy
Non-Doorman Studios -1.3% Non-Doorman One-Bedroom -3.6% Doorman One-Bedroom -1.2% Doorman Two-Bedroom -2.6%
Greenwich Village
Non-Doorman One-Bedroom -0.8% Non-Doorman Two-Bedroom -0.6%
Harlem
Doorman Studios -4.1% Doorman One-Bedroom -1.7% Doorman Two-Bedroom -5.3%
Lower East Side
Non-Doorman Studios -3.3% Non-Doorman One-Bedroom -1.8% Doorman One-Bedroom -0.8%
Midtown East
Non-Doorman One-Bedroom -1.7% Doorman Two-Bedroom -1.9%
Midtown West
Non-Doorman Two-Bedroom -0.4%
Murray Hill
Non-Doorman One-Bedroom -2.6% Non-Doorman Two-Bedroom -2.8%
SoHo
Doorman Studios -0.8% Doorman Two-Bedroom -5.6%
Tribeca
Doorman One-Bedroom -3.0% Doorman Two-Bedroom -0.5%
Upper East Side
Non-Doorman Studios -0.2% Doorman Studios -0.9% Doorman Two-Bedroom -1.6%
Upper West Side
Non-Doorman Studios -0.5% Doorman Studios -2.5% Doorman Two-Bedroom -2.5%

Where Prices Increased(monthly)

Battery Park City
Doorman Studios 1.9% Doorman One-Bedroom 3.9%
Chelsea
Non-Doorman Studios 5.7% Doorman Two-Bedroom 3.9%
East Village
Doorman One-Bedroom 0.3% Doorman Two-Bedroom 0.4%
Financial District
Non-Doorman Two-Bedroom 0.6% Doorman Studios 3.9%
Gramercy
Non-Doorman Two-Bedroom 0.3% Doorman Studios 3.6%
Greenwich Village
Non-Doorman Studios 1.7% Doorman Studios 3.8% Doorman One-Bedroom 2.6% Doorman Two-Bedroom 3.2%
Harlem
Non-Doorman Studios 5.4% Non-Doorman One-Bedroom 2.3% Non-Doorman Two-Bedroom 1.4%
Lower East Side
Non-Doorman Two-Bedroom 3.6% Doorman Studios 12.9% Doorman Two-Bedroom 1.5%
Midtown East
Non-Doorman Studios 1.0% Non-Doorman Two-Bedroom 3.4% Doorman Studios 0.3% Doorman One-Bedroom 0.8%
Midtown West
Non-Doorman Studios 5.3% Non-Doorman One-Bedroom 2.3% Doorman Studios 1.8% Doorman One-Bedroom 1.0% Doorman Two-Bedroom 0.7%
Murray Hill
Non-Doorman Studios 1.0% Doorman Studios 0.8% Doorman One-Bedroom 0.7% Doorman Two-Bedroom 3.1%
SoHo
Non-Doorman Studios 0.4% Non-Doorman One-Bedroom 3.2% Non-Doorman Two-Bedroom 7.5% Doorman One-Bedroom 3.4%
Tribeca
Non-Doorman Studios 6.1% Non-Doorman One-Bedroom 9.0% Non-Doorman Two-Bedroom 3.8% Doorman Studios 0.1%
Upper East Side
Non-Doorman One-Bedroom 0.6% Non-Doorman Two-Bedroom 0.8% Doorman One-Bedroom 0.5%
Upper West Side
Non-Doorman One-Bedroom 0.8% Non-Doorman Two-Bedroom 5.5% Doorman One-Bedroom 0.2%
manhattan quick look studios manhattan quick look 1 bed manhattan quick look 2 bed manhattan quick look 2 bed

Year Over Year Price Change

Manhattan Rents: June 2016 vs. June 2017
Type June 2016 June 2017 Change
Non-Doorman Studios $2,527 $2,564 1.5%
Non-Doorman One Bedrooms $3,359 $3,342 0.5%
Non-Doorman Two Bedrooms $4,332 $4,296 0.8%
Type June 2016 June 2017 Change
Doorman Studios $3,138 $3,097 1.3%
Doorman One Bedrooms $4,330 $4,204 2.9%
Doorman Two Bedrooms $6,339 $6,145 3.1%

• Over the last month, studio prices in Battery Park City increased by 1.9%, one bedroom prices increased by 3.9%, and two bedroom prices decreased by 2.5%. These are dollar changes of +$58.61, +$147.27, and -$183.98, and an overall average monthly increase of 0.2%. Over the last year, prices in Battery Park City have increased by 0.7%. Inventory decreased by 19 units or 13.6%, from 140 units to 121 units, but only after increasing by 15 units or 12%, from 125 units to 140 units, just last month.

battery park city studio apartment price trends battery park one bedroom prices battery park city two bedroom apartment price trends

• Inventory in Chelsea remained very stable this month, decreasing by 2 units or 0.3%, from 750 units to 748 units. There were 354 non doorman units on the market and 394 doorman units, indicating that the market remains split nearly in half between the two service levels. This month, studio non doorman prices increased by 5.7%, studio doorman prices decreased by 2.8%, one bedroom non doorman prices decreased by 1.7%, one bedroom doorman prices decreased by 0.8%, two bedroom non doorman prices decreased by 3.3%, and two bedroom doorman prices increased by 3.9%. The reason for the larger increase in studio non doorman prices is higher priced units at The Kheel Tower at 315 Seventh Avenue. Of the top ten highest priced non doorman studio units this month, four were from this 1989 conversion, which contains 95 units.

chelsea studio apartment price trends chelsea one bedroom apartment price trends chelsea two bedroom apartment price trends

• Inventory in the East Village is almost exclusively non doorman. While there were 725 non doorman units on the market this month, there were only 106 doorman units. Additionally, inventory grew by 96 units or 13.1%, and most of this increase occurred in the non doorman sector. No one building or new development is responsible for the increase; there were several buildings with high levels of activity, such as 520 East 11th Street, 77 East 7th Street, and 222 East 7th Street. Over the last month, studio prices in the East Village decreased by 3.5%, one bedroom prices decreased by 0.6%, and two bedroom prices decreased by 1.7%. This is an average overall change of -1.6%. Over the last year, prices here have decreased by 4.6%.

east village studio apartment price trends east village one bedroom apartment prices east village two bedroom apartment price trends

• Studio non doorman prices in the Financial District decreased by 0.5%, and doorman prices increased by 3.9%. One bedroom non doorman prices decreased by 2.7%, and doorman prices decreased by 1.3%. Two bedroom non doorman prices increased by 0.6%, and doorman prices decreased by 2.1%. This is an average prices decrease of 0.7%. Over the last year, prices have decreased by 1.8%. Inventory in the Financial District increased by 5.3% or 27 units, from 511 units to 538 units.

financial district nyc studio apartment prices financial district one bedroom apartments financial district two bedroom apartment price trends

• Inventory in Gramercy increased by 12.4% or 30 units this month, from 242 units to 274 units. This is following an increase in inventory between April and May, when inventory in Gramercy increased by 13 units or 5.7%, from 229 units to 242 units. This month, there were high levels of activity at Zeckendorf Towers at 1 Irving Place, which contains 647 units. Over the last month, studio non doorman and doorman prices have decreased by 1.3% and increased by 3.6%, respectively. One bedroom non doorman and doorman prices have decreased by 3.6% and 1.2%, respectively. Two bedroom non doorman and doorman prices have increased by 0.3% and decreased by 2.6%, respectively. Over the last year, prices in this neighborhood have decreased by 4.9%.

gramercy studio apartment trends gramercy one bedroom apartment price trends gramercy two bedroom apartment price trends

• Studio non doorman prices in Greenwich Village have increased by 1.7%, and doorman prices have increased by 3.8%. One bedroom non doorman prices have decreased by 0.8%, and doorman prices have increased by 2.6%. Two bedroom non doorman prices have decreased by 0.6%, and doorman prices increased by 3.2%. This is an average overall change of 1.7%. Over the last year, prices have also remained stable, decreasing by 1.3%. Inventory in Greenwich Village increased by 6.2% or 45 units over the last month, from 727 units to 772 units.

greenwich village studio apartment prices greenwich village one bedroom apartment prices greenwich village two bedroom apartment prices

• Over the last month, studio prices in Harlem increased by 0.6%, one bedroom prices increased by 0.3%, and two bedroom prices decreased by 1.9%. This is an average overall change of -1.1%. Over the last year, prices have decreased by 0.3%. Inventory in Harlem increased by 88 units or 9.7%, from 911 units to 999 units, and all of this increase was in the non doorman market. In fact, the doorman market decreased in inventory, from 225 units in May to 200 units in June. 65 West 106th Street, an older 30 unit building, had high levels of activity this month. 329 Pleasant Avenue, which was built this year and contains 20 units, just started renting this month.

harlem studio apartment price trends harlem one bedroom prices harlem two bedroom apartment price trends

• Inventory on the Lower East Side decreased by 9 units or 2.5% this month, from 356 units in May to 347 units in June. 85% of all inventory is in non doorman buildings and the remaining 15% is in doorman buildings. This month, studio non doorman prices decreased by 3.3%, one bedroom non doorman prices decreased by 1.8%, and two bedroom non doorman prices increased by 3.6%. It is in the doorman sector, where inventory is so low, that larger price fluctuations are often seen. Studio doorman prices, for instance, increased by 12.9%. One and two bedroom doorman prices decreased by 0.8% and increased by 1.5%, respectively. Over the last year, prices on the Lower East Side have remained very stable, decreasing by 0.5%.

lower east side studio apartment prices lower east side one bedroom apartment price trends lower east side two bedroom apartment price trends

• Over the last month, studio non doorman and doorman prices in Midtown East have increased by 1.0% and 0.3%, respectively. One bedroom non doorman and doorman prices have decreased by 1.7% and increased by 0.8%, respectively. Two bedroom non doorman and doorman prices have increased by 3.4% and decreased by 1.9%, respectively. This is an average overall change of 0.1%. Over the last year, prices in Midtown East have increased by 3.9%. Inventory in this neighborhood remained stable over the last month, increasing by 3.4% or 38 units, from 1,132 units to 1,170 units.

midtown east studio apartment price trends midtown east one bedroom price trends midtown east two bedroom price trends

• Inventory in Midtown West increase by 3.0% or 29 units this month, from 964 units to 993 units. 41% of inventory is in non doorman buildings and the remaining 59% is in doorman buildings. Over the last month, studio non doorman prices have increased by 5.3%, mainly due to high priced units at 809 9th Avenue. This new development was built in 2013 and contains 10 units. Studio doorman prices increased by 1.8%, one bedroom non doorman unit prices increased by 2.3%, one bedroom doorman prices increased by 1.0%, two bedroom non doorman prices decreased by 0.4%, and two bedroom doorman prices increased by 0.7%. This is an average overall change of 1.4%. Over the last year, prices have decreased by 1.1%.

midtown west studio apartment price trends midtown west one bedroom price trends midtown west two bedroom apartment price trends

• Inventory in Murray Hill increased by 6.9% or 58 units this month, from 839 units in May to 897 units in June. Studio non doorman prices increased by 1.0%, studio doorman prices increased by 0.8%, one bedroom non doorman prices decreased by 2.6%, one bedroom doorman prices increased by 0.7%, two bedroom non doorman prices decreased by 2.8%, and two bedroom doorman prices increased by 3.1%. This is an average overall change of 0.2%. Over the last year, prices increased by 0.3%.

murray hill studio apartment price trends murray hill one bedroom apartment price trends murray hill two bedroom apartment price trends

• Over the last month, studio non doorman and doorman prices in SoHo increased by 0.4% and decreased by 0.8%, respectively. One bedroom non doorman and doorman prices increased by 3.2% and 3.4%, respectively. Two bedroom non doorman and doorman prices increased by 7.5% and decreased by 5.6%, respectively. The reason for the larger two bedroom price changes is very low inventory levels. There were only six two bedroom doorman units and 37 non doorman units on the market this month. Over the last year, prices in SoHo have increased by 3.8%. Inventory in SoHo decreased by 30 units or 19.1% this month, from 157 units to 127 units, after increasing by only one unit the month before (from 156 unit to 157 units). Most of this change occurred in the non doorman market, and is not due to one building or development in May but just fewer units of every size on the market this month. There were nine fewer studio units, ten fewer one bedroom units, and twelve fewer two bedroom units. With such low inventory levels, slight changes will result in large percentage swings.

soho studio apartment prices soho one bedroom apartment price trends soho two bedroom apartment prices

• Inventory in TriBeCa increased by 5.4% or 8 units this month, from 147 units to 155 units. 21% of this inventory is in non doorman buildings and 79% is in doorman buildings. Due to low inventory levels, price changes varied this month in TriBeCa, especially between doorman and non doorman units of the same size. On average, however, studio prices increased by 3.1%, one bedroom prices increased by 3.0%, and two bedroom prices increased by 1.7%. This is an average overall change of 2.4%. Over the last year, prices have decreased by 5.3%. Low inventory levels can often times lead to large year over year price changes.

tribeca studio apartment prices tribeca one bedroom apartment price trends tribeca two bedroom apartment prices

• Inventory on the Upper East Side increased by 4.8% or 89 units this month, from 1,871 units to 1,960 units. 64% of units (1,251 units) are in non doorman buildings and the remaining 36% (709 units) are in doorman buildings. Over the last month, studio non doorman and doorman prices have decreased by 0.2% and 0.9%, respectively. One bedroom non doorman and doorman prices have increased by 0.6% and 0.5%, respectively. Two bedroom non doorman and doorman prices have increased by 0.8% and decreased by 1.6%, respectively. This is an average overall change of -0.3%. Over the last year, prices have decreased by 0.5%.

upper east side studio apartment price trends upper east side one bedroom price trends upper east side two bedroom price trends

• Inventory on the Upper West Side increased by 4.8% this month, from 1,551 units to 1,625 units. The neighborhood remains nearly split in half between non doorman and doorman units. There were 801 non doorman units and 824 doorman units, and they composed 49% and 51% of total inventory, respectively. Over the last month, studio non doorman and doorman prices decreased by 0.5% and 2.5%, respectively. One bedroom non doorman and doorman prices increased by 0.8% and 0.2%, respectively. Two bedroom non doorman and doorman prices increased by 5.5% and decreased by 2.5%, respectively. The reason for the large two bedroom non doorman change is higher priced units on the market. This month, there were 11 units priced above $7,000, and last month there were only three. Over the last year, prices have increased by 0.3%.

upper west side studio apartment price trends upper west side one bedroom price trends upper west side two bedroom price trends

The Report Explained

The The Manhattan Rental Market Report™ 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 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).

Author:

MNS has been helping Manhattan and Brooklyn landlords and renters navigate the rental market since 1999. From large companies to individuals, MNS tailors services to meet your needs. Contact us today to see how we can help.

CONTACT US NOW: 212.475.9000

Note: All market data is collected and compiled by MNS's marketing department. The information presented here is 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.

If you would like to republish this report on the web, please be sure to source it as the -Brooklyn Rental Market Report- with a link back to its original location (http://www.mns.com/manhattan_rental_market_report)

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