Manhattan Rental Market Report | MNS is Real Impact Real Estate

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MANHATTAN
RENTAL MARKET REPORT

July 2015

Introduction

Average rent across Manhattan remained stable with a -0.54% change since last month, from $3,985 in June 2015 to $3,963 in July 2015.

A Quick Look

Rent Prices in Manhattan remained stable with a slight movement of -0.54% - from $3,985 in June 2015 to $3,963 in July 2015. Listing inventory increased by 2.68% from 8,437 units in June 2015 to 8,663 units in July 2015. The ratio of NonDoorman units to Doorman units in all of Manhattan changed from 44.5% (NDM) and 55.5% (DM) in June 2015 to 43.1% (NDM) and 56.9% (DM).
The largest percentage increases in rent prices were seen in One Bedroom Doorman units in SoHo and Two Bedroom Non Doorman units in TriBeCa, contributed to a mixture of higher priced units entering the market and a relatively small sample size. The largest percentage decreases were seen in Studio Non Doorman units in TriBeCa, Studio Doorman units in Greenwich Village, Two Bedroom Non Doorman units in Financial District and One Bedroom Doorman units in Harlem. It should be noted that the following neighborhoods consisted of a sample size of less than 15 units at the time the sample was taken: Studio – FIDI (NDM), TriBeCa (NDM), Lower East Side (DM), SoHo (DM); One Bedroom – FIDI (NDM), TriBeCa (NDM), SoHo (DM); Two Bedroom - FIDI (NDM), Soho (DM).
The largest annual shifts in rent prices were seen in Harlem and TriBeCa. Harlem experienced 17.9% growth from $2,339 in July 2014 to $2,757 in July 2015, the result of several new construction buildings arising over the course of the year. TriBeCa fell by 9.3% from $6,085 in July 2014 to $5,521 in July 2015, largely the result of being one of, if not the smallest market in terms of inventory across the borough. Low sample sizes are known to make average pricing fluctuate dramatically as low/higher priced units leave/enter the market.
The largest inventory fluctuations (amongst material sample sizes were seen in Harlem, where inventory increased by 18.2% and SoHo, where inventory decreased by 10.9%.

A Quick Look

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

Where Prices Decreased(monthly)

Battery Park City
Doorman Studios -2.8%
Chelsea
Non-Doorman Studios -2.2% Non-Doorman One-Bedroom -2.7% Doorman One-Bedroom -0.7% Non-Doorman Two-Bedroom -0.2%
East Village
Doorman One-Bedroom -7.1% Doorman Two-Bedroom -6.5% Non-Doorman Two-Bedroom -3.6%
Financial District
Non-Doorman Studios -3.1% Non-Doorman Two-Bedroom -16.1% Doorman Two-Bedroom -0.6%
Gramercy
Non-Doorman Studios -3.7% Doorman Studios -1.2% Doorman One-Bedroom -1.5% Non-Doorman Two-Bedroom -6.5% Doorman Two-Bedroom -0.9%
Greenwich Village
Doorman Studios -8.4% Non-Doorman One-Bedroom -1.3% Doorman One-Bedroom -0.5% Doorman Two-Bedroom -3.4%
Harlem
Doorman Studios -2.1% Doorman One-Bedroom -11.0% Non-Doorman One-Bedroom -0.5% Doorman Two-Bedroom -3.9%
Lower East Side
Doorman Studios -3.0% Doorman One-Bedroom -5.4% Non-Doorman One-Bedroom -1.4% Doorman Two-Bedroom -5.5% Non-Doorman Two-Bedroom -4.7%
Midtown East
Non-Doorman Studios -0.1% Doorman Studios -1.3% Doorman Two-Bedroom -1.0%
Midtown West
Non-Doorman One-Bedroom -0.1% Non-Doorman Two-Bedroom -0.1%
Murray Hill
Non-Doorman Studios -0.2% Non-Doorman One-Bedroom -0.4% Non-Doorman Two-Bedroom -3.2% Doorman Two-Bedroom -0.4%
SoHo
Non-Doorman Studios -5.0% Non-Doorman Two-Bedroom -2.1%
Tribeca
Non-Doorman Studios -8.3% Non-Doorman One-Bedroom -0.1%
Upper East Side
Doorman Two-Bedroom -3.8% Non-Doorman Two-Bedroom -1.4%
Upper West Side
Non-Doorman Studios -3.6%

Where Prices Increased(monthly)

Battery Park City
Doorman One-Bedroom 2.4% Doorman Two-Bedroom 0.6%
Chelsea
Doorman Studios 2.2% Doorman Two-Bedroom 1.1%
East Village
Doorman Studios 2.2% Non-Doorman Studios 3.8% Non-Doorman One-Bedroom 1.9%
Financial District
Doorman Studios 0.3% Doorman One-Bedroom 1.1% Non-Doorman One-Bedroom 1.8%
Gramercy
Non-Doorman One-Bedroom 2.6%
Greenwich Village
Non-Doorman Studios 1.5% Non-Doorman Two-Bedroom 3.0%
Harlem
Non-Doorman Studios 0.3% Non-Doorman Two-Bedroom 0.2%
Lower East Side
Non-Doorman Studios 0.4%
Midtown East
Doorman One-Bedroom 1.4% Non-Doorman One-Bedroom 2.3% Non-Doorman Two-Bedroom 0.9%
Midtown West
Doorman Studios 0.0% Non-Doorman Studios 2.8% Doorman One-Bedroom 0.8% Doorman Two-Bedroom 6.1%
Murray Hill
Doorman Studios 0.3% Doorman One-Bedroom 1.5%
SoHo
Doorman Studios 0.3% Non-Doorman One-Bedroom 4.5% Doorman One-Bedroom 10.4% Doorman Two-Bedroom 0.6%
Tribeca
Doorman Studios 4.6% Doorman One-Bedroom 0.1% Non-Doorman Two-Bedroom 11.2% Doorman Two-Bedroom 0.5%
Upper East Side
Doorman Studios 0.5% Non-Doorman Studios 2.6% Non-Doorman One-Bedroom 5.1% Doorman One-Bedroom 3.1%
Upper West Side
Doorman Studios 0.0% Doorman One-Bedroom 1.6% Non-Doorman One-Bedroom 0.5% Doorman Two-Bedroom 2.4% Non-Doorman Two-Bedroom 2.8%
manhattan quick look studios manhattan quick look 1 bed manhattan quick look 2 bed manhattan quick look 2 bed

Year-Over-Year Changes

Manhattan Non-Doorman Rents: July 2014 vs. July 2015
Type July '14 July '15 Change
Non-Doorman Studios $2,782 $2,396 -13.9%
Non-Doorman One Bedrooms $3,179 $3,187 0.2%
Non-Doorman Two Bedrooms $4,212 $4,234 0.5%
Manhattan Doorman Rents: July 2014 vs. July 2015
Type July '14 July '15 Change
Doorman Studios $2,884 $3,034 5.2%
Doorman One Bedrooms $4,044 $4,359 7.8%
Doorman Two Bedrooms $5,948 $6,315 6.2%

• The monthly average remained stable with only a 0.3% change in prices since the previous month.
• The annual average rent increased by 4.9% since July 2014.

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

• With a monthly price change of -0.2%, Chelsea prices didn’t fluctuate as much as other neighborhoods.
• Reasonable changes, however, where noticed in the yearly numbers, with an increase of 6.4% since July 2014 illustrating sturdy growth.

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

• One and Two Bedroom Doorman units saw decreases of 7.1% and 6.5%, respectively. These movements can be seen as a result of inventory increasing by 30% since last month, causing prices to slightly dilute.

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

• Two Bedroom Non Doorman Units saw prices decrease 16.1% since last month. This large change can be attributed to the consistently low sample size amongst Non-Doorman Units, making average pricing fluctuate dramatically as low/higher priced units leave/enter the market.
• Despite this large movement, overall monthly and annual changes saw moderate movements of -3.9% and 1.3%, respectively

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

• Studio and Two Bedroom Non Doorman unit averages fell by 3.7% and 6.5%, respectively, since last month. However, with 1 bedrooms increasing 2.6%, the overall monthly change in prices balanced out at -1.8%.
• With annual averages increasing 3.1% since last year, Gramercy is overall seeing steady growth.

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

• This neighborhood remained stable with a decrease of 1.5% in monthly average rents and 0.2% decrease in annual average rents.
• However, Studio Doorman Units experienced a noticeable fall of 8.4% since the previous month, contributed to an increase in lower priced units entering the market.

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

• A large decrease of 11% in One Bedroom Doorman unit rents was largely attributed to a 65% increase in One Bedroom Doorman inventory, together with an influx of lower priced units.
• However, the yearly change in prices remained strong with a 17.9% difference since July 2014, indicating a very strong growth in the Harlem market, as we see several new construction buildings hit the market during the course of the year.

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

• With all but Studio Non-Doorman Units decreasing in price since last month, the LES saw an overall monthly change of -3.9%.
• Annual numbers still remained strong with a 5.7% growth since July 2014.

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

• With consistent month to month growth, Midtown West saw increases of 2.1% since June 2015 and 3.13% since July 2014.

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

• Among non-doorman units, only two bedrooms saw prices increase since last month, with rents up 5% since May.
• Among doorman units, prices increased for studio and two bedroom units. In addition, listing inventory for doorman units was up 8% overall, and almost 20% among one bedroom units.

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

• One of the more stable neighborhoods, both monthly and rental prices remained relatively unchanged at -0.5% and 0.3%, respectively.

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

• Although Studio and Two Bedroom Non Doorman units fell by 5.0% and 2.1%, respectively, all other unit classes saw growth, balancing the average monthly change out at 2.2%.
• Most notably was a 10.4% growth in 1 bedroom doorman units, contributed to 3 listings at 55 Thompson st achieving in excess of $9,300/month. soho studio apartment prices soho one bedroom apartment price trends soho two bedroom apartment prices

• With Non-Doorman units attributing to only 15% of this month’s inventory, large price movements were more apparent, as was seen in Studios and Two Bedroom units this month. Despite these variances, overall monthly growth was steady at 2%.
• Similarly, yearly changes in Non Doorman units are inflated due to consistently low sample sizes.

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

• Another relatively stable neighborhood, the UES saw minimal growth at 0.2% since last month and 0.9% since July 2014

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

• This neighborhood experienced a steady growth of 1.2% since June 2015 and 3.1% since July 2014.

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.

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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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