Manhattan Rental Market Report | MNS is Real Impact Real Estate

MANHATTAN
RENTAL MARKET REPORT

November 2016

Introduction

Over the last month, prices in Manhattan have decreased by an average of 1.65%, and over the last year, they have decreased an average of 0.27%

A Quick Look

Over the last month, prices in Manhattan have decreased by an average of 1.65%, and over the last year, they have decreased an average of 0.27%. This month, studio prices decreased by 2.2%, one bedroom prices have decreased by 2.0%, and two bedroom prices have decreased by 0.7%. There continues to be more doorman units in Manhattan than non-doorman units, at 51.3% to 48.7% respectively this month, compared to 53.7% to 46.3% respectively last month.
Large changes were seen in certain aspects of the East Village and Financial District markets. East Village two bedroom doorman prices decreased by 13.2%, partly due to low doorman inventory levels (this type of unit constituted only 16% of East Village inventory, which in total constitutes 6.5% of Manhattan inventory). This is also due a larger quantity of lower priced rentals on the market. In the Financial District, studio nondoorman prices fell by 14.6%, which is due in part to extremely low inventory. At 28 units, nondoorman units composed 6% of Financial District inventory, and 0.3% of total inventory.
There were large changes in Harlem last month, such as in the prices of studio doorman units and one bedroom doorman units. This month, studio doorman prices increased by 0.01%, and one bedroom doorman unit prices increased by 2.5%. On average in Harlem, prices dropped by 1.7% this month and increased by 1.3% this year.
Not including the four lowest inventory neighborhoods (which had a maximum of 211 units), the largest change in Manhattan on average was seen in Greenwich Village, where prices dropped 3.3% this month. This is due to low priced rental units. For example, 25 West 13th Street was offering a one bedroom doorman unit for $2,900 a month. There were many one bedroom doorman units being offered for under $4,000 a month. Studio doorman units were also priced lowly this month: many units were priced below $3,000 a month, including several located at 165 Christopher Street. Over the last year, however, price changes have been less severe, at -1.0%, indicating some stability overall.
Over the last year, prices in Manhattan have decreased an average of 0.3%. The largest change has been a 7.77% average decrease in Lower East Side prices, followed by a 7.76% price increase in SoHo. Both of these neighborhoods have very low inventory levels compared other neighborhoods in the borough, so price fluctuations are not surprising. TriBeCa, another small neighborhood, saw the third greatest price change, at +6.3%. Other changes ranged from -5.3% (Murray Hill) to 3.99% (Financial District).
The expansion of the 2nd Avenue Subway to reach 16 new stations, and upcoming work on the L train line, will have interesting effects on the rental market in Manhattan over the coming months and years. Development will continue as well, with large projects like 53W53 slated for completion in 2018.

A Quick Look

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

Where Prices Decreased(monthly)

Battery Park City
Doorman Studios -3.6% Doorman One-Bedroom -3.1%
Chelsea
Doorman Studios -5.2% Doorman One-Bedroom -5.3%
East Village
Non-Doorman Two-Bedroom -0.1% Doorman Studios -5.5% Doorman Two-Bedroom -13.2%
Financial District
Non-Doorman Studio -14.6% Doorman Studios -0.7% Doorman One-Bedroom -1.4% Doorman Two-Bedroom -3.7%
Gramercy
Non-Doorman One-Bedroom -2.9% Non-Doorman Two-Bedroom -1.2% Doorman Studios -1.5% Doorman One-Bedroom -7.9% Doorman Two-Bedroom -1.0%
Greenwich Village
Non-Doorman Studios -1.5% Non-Doorman One-Bedroom -2.1% Non-Doorman Two-Bedroom -1.7% Doorman Studios -4.2% Doorman One-Bedroom -6.2% Doorman Two-Bedroom -3.0%
Harlem
Non-Doorman Studios -6.5% Non-Doorman One-Bedroom -3.0% Non-Doorman Two-Bedroom -3.0% Doorman Two-Bedroom -1.7%
Lower East Side
Non-Doorman One-Bedroom -0.8% Non-Doorman Two-Bedroom -14.1% Doorman Studios -14.2% Doorman One-Bedroom -5.1% Doorman Two-Bedroom -16.9%
Midtown East
Non-Doorman Studios -1.9% Doorman Studios -4.9% Doorman One-Bedroom -1.5%
Midtown West
Non-Doorman One-Bedroom -1.0% Non-Doorman Two-Bedroom -1.0% Doorman Studios -1.6% Doorman One-Bedroom -1.9%
Murray Hill
Doorman Studios -5.0% Doorman One-Bedroom -2.6%
SoHo
Non-Doorman One-Bedroom -10.2% Doorman One-Bedroom -0.3%
Tribeca
Non-Doorman One-Bedroom -8.2% Non-Doorman Two-Bedroom -1.8% Doorman Studios -15.6% Doorman Two-Bedroom -5.9%
Upper East Side
Non-Doorman Studios -0.3% Non-Doorman Two-Bedroom -0.8% Doorman Studios -0.5% Doorman One-Bedroom -2.9% Doorman Two-Bedroom -0.9%
Upper West Side
Non-Doorman One-Bedroom -1.2% Doorman Studios -2.7% Doorman One-Bedroom -2.6% Doorman Two-Bedroom -3.4%

Where Prices Increased(monthly)

Battery Park City
Doorman Two-Bedroom 4.0%
Chelsea
Non-Doorman Studios 4.3% Non-Doorman One-Bedroom 3.7% Non-Doorman Two-Bedroom 8.7% Doorman Two-Bedroom 0.4%
East Village
Non-Doorman Studios 6.7% Non-Doorman One-Bedroom 1.7% Doorman One-Bedroom 2.2%
Financial District
Non-Doorman One-Bedroom 2.1% Non-Doorman Two-Bedroom 3.4%
Gramercy
Non-Doorman Studios 2.9%
Harlem
Doorman Studios 0.0% Doorman One-Bedroom 2.5%
Lower East Side
Non-Doorman Studios 2.5%
Midtown East
Non-Doorman One-Bedroom 1.5% Non-Doorman Two-Bedroom 5.6% Doorman Two-Bedroom 0.04%
Midtown West
Non-Doorman Studio 4.5% Doorman Two-Bedroom 0.7%
Murray Hill
Non-Doorman Studios 1.5% Non-Doorman One-Bedroom 2.8% Non-Doorman Two-Bedroom 3.3% Doorman Two-Bedroom 2.3%
SoHo
Non-Doorman Studios 7.4% Non-Doorman Two-Bedroom 10.7% Doorman Studios 1.7% Doorman Two-Bedroom 4.6%
Tribeca
Non-Doorman Studios 2.9% Doorman One-Bedroom 4.2%
Upper East Side
Non-Doorman One-Bedroom 2.2%
Upper West Side
Non-Doorman Studios 1.9% Non-Doorman Two-Bedroom 3.2%
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 Doorman Rents: November 2015 vs. November 2016
Type November 2015 November 2016 Change
Non-Doorman Studios $2,418 $2,601 7.6%
Non-Doorman One Bedrooms $3,140 $3,198 1.8%
Non-Doorman Two Bedrooms $4,302 $4,293 0.2%
Type November 2015 November 2016 Change
Doorman Studios $2,960 $3,064 3.5%
Doorman One Bedrooms $4,176 $4,198 0.5%
Doorman Two Bedrooms $6,246 $6,020 3.6%

• While prices increased across all unit sizes in October, studio and one bedroom prices decreased this month. Studio prices fell by 3.6% and one bedroom prices fell by 3.1%. Two bedroom prices increased by 2.1% last month and increased by 4.0% this month. Over the last year, prices have decreased by an average of 2.5%.

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

• After decreasing an average of 2.8% last month, prices in Chelsea have increased by 0.9% this month. Studio non doorman prices increased by 4.3% and studio doorman prices decreased by 5.2%. One bedroom non doorman prices increased by 3.7% and one bedroom doorman prices decreased by 5.3%. Two bedroom non doorman prices increased by 8.7% and doorman prices increased by 0.4%. This large percentage increase in two bedroom non doorman prices follows the 11.5% decrease in prices last month. Over the last year, price changes have been minimal, with an average price decrease of only 0.8%.

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

• Changes in one bedroom prices in the East Village were relatively minimal, ranging between +1.7% and +2.2%. Studio price changes varied, as non doorman prices increased by 6.7% and doorman prices fell by 5.5%. Two bedroom non doorman prices fell only 0.1%, and doorman unit prices fell 13.2%. Although inventory in East Village is not the lowest of Manhattan neighborhoods, and actually constituted almost 7% of the borough’s inventory this month, only 16% of East Village units are doorman units. This low doorman inventory is thus susceptible to larger price changes.

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

• The largest change in the Financial District this month was in the price of studio non doorman apartments, where prices dropped 14.6%. However, the inventory level in this particular sector is very low (this month it was less than ten units) so it is bound to see large percentage swings. Non doorman units continue to constitute a small amount of total units in the Financial District- both this month and last month they composed only 6% of the total units in the neighborhood. Other changes this month ranged from -3.7% to +3.4%, causing an average monthly decrease of 2.4%. Over the last year, prices have increased by an average of 4.0%.

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

• Price changes in Gramercy this month were relatively stable, averaging -2.2%. Studio non doorman prices rose 2.9%, studio doorman prices fell 1.5%, one bedroom non doorman prices fell 2.9%, one bedroom doorman prices fell 7.9%, two bedroom non doorman prices fell 1.2%, and two bedroom doorman prices fell 1.0%. Several lowered priced units at 321 East 22nd Street, offering one bedroom units for as low as $2,300 a month, contributed to the low monthly average. Over the last year, prices have decreased by an average of 4.3%.

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

• Price changes in Greenwich Village were relatively stable this month, following an extremely stable average month of October. The largest price change was a 6.2% drop in the price of one bedroom doorman units, due to low prices units on the market. Other price changes were as follows: studio non doorman units fell 1.5%, studio doorman units fell 4.2% (after rising 9.9% last month), one bedroom non doorman units fell 2.1%, two bedroom non doorman units fell 1.7%, and two bedroom doorman units fell 3.0%. Over the last year, prices have dropped by 1.0%.

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

• Price changes in Harlem were relatively stable this month. The studio non doorman price change was the largest, at -6.5%. Units prices as low as $1,350, like one at 1797 Lexington Avenue, contributed to this drop. Studio doorman prices rose 0.01%, one bedroom non doorman prices fell 3.0%, one bedroom doorman prices increased 2.5%, two bedroom non doorman prices decreased by 3.0%, and two bedroom doorman prices decreased by 1.7%. Over the last year, prices have increased by 1.3%.

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

• In the Lower East Side this month, studio non doorman prices increased by 2.5%, and studio doorman prices decreased by 14.2%. One bedroom non doorman prices decreased by 0.8%, and one bedroom doorman prices decreased 5.1%. Two bedroom non doorman prices decreased by 14.1% and two bedroom doorman prices decreased by 16.9%. This led to an average monthly price drop of 9.9%. Yearly changes on average were similar but not as severe, as prices dropped 7.8%. The Lower East Side comes in fourth as the lowest inventory neighborhood in the borough behind SoHo, TriBeCa, and Battery Park City, making up only 2.1% of the total units in Manhattan. To compare, other neighborhoods have hundreds of more units on the market this month than did the Lower East Side. This leaves the neighborhood susceptible to large price swings.

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

• On average, prices have been very stable over the last month, decreasing an average of 0.01%. Studio prices have dropped an average of 3.4%, one bedroom prices have dropped by an average of 0.02%, and two bedroom prices have increased an average of 2.8%. This month, Midtown East inventory constituted 8.6% of the borough’s total inventory count, at 850 units out of 9,861 total units. Over the last year, prices have decreased by an average of 2.3%.

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

• Midtown West had a very stable month as it did in October. Studio non doorman prices increased by 4.5%, studio doorman prices decreased by 1.6%, one bedroom non doorman unit prices decreased by 1.0%, one bedroom doorman unit prices decreased by 1.9%, two bedroom non doorman prices decreased by 1.0%, and two bedroom doorman prices increased by 0.7%. This leads to an average price decrease of 0.2%, and a yearly average decrease of 2.2%. Inventory this month accounted for 9.8% of total inventory this month, at 967 units out of 9,861 units.

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

• Inventory in Murray Hill constituted 7.2% of total units this month, at 708 units out of 9,861 units. On average, price changes this month were less than last month, at +0.5% compared to -3.2%. Studio prices decreased an average of 1.7%, one bedroom prices increased an average of 0.1%, and two bedroom prices increased an average of 2.8%. Over the last year, prices have decreased an average of 5.3%.

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

• While the average change over the last month was 2.5%, this is not necessarily indicative of the changes within unit size and service level. For instance, studio non doorman prices increased 7.4%, one bedroom non doorman prices decreased 10.2%, and two bedroom non doorman prices increased by 10.7%. Over the last year, prices have increased by 7.8%. Inventory in SoHo is the lowest of any neighborhood in the borough, at only 121 out of 9,861 units. This is only 1.2% of the borough’s total units. This will contribute to price swings.

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

• TriBeCa inventory continues to remain very low, second only to SoHo as the smallest neighborhood (by unit count) in the entire borough. At 138 units, it constitutes only 1.4% of total units. This can cause large price percentage swings, which were seen in studio doorman units (-15.6%) and in one bedroom non doorman units (-8.2%). Other price changes were as follows: studio non doorman units increased by 2.9%, one bedroom doorman units increased by 4.2%, two bedroom nondoorman units decreased by 1.8% and two bedroom doorman units decreased by 5.9%. Over the last year, prices have increased by 6.3%

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

• Over the last year, prices have decreased by 2.6% on average, and over the last month, they have decreased by 0.7%. Studio non doorman unit prices decreased by 0.3%, studio doorman prices decreased by 0.5%, one bedroom non doorman prices increased by 2.2%, one bedroom doorman prices decreased by 2.9%, two bedroom non doorman prices decreased by 0.8%, and two bedroom doorman prices decreased by 0.9%. Inventory was 1,898 units, or 19.3% of total units.

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

• Second only to the Upper East Side inventory level, the inventory level on the Upper West Side constituted a large majority of Manhattan’s total units compared to other neighborhoods- at 1,460 units, or 14.8% of total units. Prices were also very stable this month, decreasing an average of 1.2% (and increasing by 0.8% over the last year). Between unit size and service level, price changes ranged from -3.4% to +3.2%.

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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