Manhattan Rental Market Report | MNS is Real Impact Real Estate

MANHATTAN
RENTAL MARKET REPORT

February 2017

Introduction

Prices in Manhattan have decreased by 0.3% this month, after increasing by 0.2% in January, from $3,931.85 to $3,920.93.

A Quick Look

Prices in Manhattan have decreased by 0.3% this month, after increasing by 0.2% in January, from $3,931.85 to $3,920.93. Studio non doorman prices increased by 4.96%, studio doorman prices increased by 0.3%, one bedroom non doorman prices decreased by 0.6%, one bedroom doorman price decreased by 1.9%, two bedroom non doorman prices decreased by 0.7%, and two bedroom doorman prices decreased by 0.6%. Over the last year, prices have increased by 1.8%. Studio non doorman prices have increased by 6.4%, studio doorman prices have increased by 1.6%, one bedroom non doorman prices have increased by 3.8%, one bedroom doorman prices have increased by 2.2%, two bedroom non doorman prices have increased by 0.3%, and two bedroom doorman prices have decreased by 2.2%.
Inventory in Manhattan remained relatively consistent this month. In January, there were 9,601 units on the market. In February, there were 9,944 units. These units are split almost evenly between non doorman units (50.2%) and doorman units (49.8%). The largest changes in inventory occurred in SoHo and the Lower East Side. In SoHo, inventory increased by 31.4%, from 102 units to 134 units. On the Lower East Side, inventory increased by 33.3%, from 201 units to 268 units. SoHo inventory levels are so low that even small increases in inventory will cause large shifts.
The Lower East Side is also a small neighborhood, but not the smallest by far. Inventory surged in this neighborhood in February due to a new building at 155 Attorney Street. This building was built in 2017, is seven stories high, and contains a total of 37 units. It just started renting out in early February and caused inventory in the Lower East Side in increase by 67 units. Prices in this building range from $3,400 for a one bedroom unit to $5,700 a month for a three bedroom unit.
Gramercy’s two bedroom sector fell this month. Two bedroom non doorman unit prices decreased 7.4% and two bedroom doorman unit prices decreased 5.9%. This is not due to a lack of inventory on the market. In fact, both of these sectors grew by two units. There were 30 non doorman units last month versus 32 this month, and 22 doorman units this month versus 20 last month. However, units were not priced as highly in February as they were in January. Two bedroom non doorman units reached $7,995 a month last month, and this month the highest priced non doorman unit was only $6,795. As far as the doorman market was concerned, this month there were 14 units below $6,000 a month (versus 11 last month) and only 8 units above that price (versus 9 last month). The low levels of inventory during both January and February are still worth noting however, as small numbers will be effected by percentage swings. Murray Hill had a stronger two bedroom sector this month than did Gramercy, as non doorman unit prices increased by 6.9% (doorman unit prices fell but only by 1.6%). Other prices in Murray Hill were stable.
Other buildings currently preselling units or under construction are One Manhattan Square at 252 South Street (815 units) and 1399 Park Avenue (72 units). Buildings like 155 Attorney Street are introducing new inventory levels to the market, and perhaps as months pass, we will notice neighborhoods that were previously considered small continue to grow and shape, perhaps even influencing the neighborhoods around them.

A Quick Look

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

Where Prices Decreased(monthly)

Battery Park City
Doorman Studios -0.3% Doorman One-Bedroom -2.6% Doorman Two-Bedroom -0.6%
Chelsea
Non-Doorman Studios -2.5% Non-Doorman One-Bedroom -1.8% Non-Doorman Two-Bedroom -3.5% Doorman One-Bedroom -0.2%
East Village
Non-Doorman One-Bedroom -1.2% Doorman One-Bedroom -3.2% Doorman Two-Bedroom -6.2%
Financial District
Doorman Studios -0.5% Doorman Two-Bedroom -0.2%
Gramercy
Non-Doorman Studio -1.2% Non-Doorman Two-Bedroom -7.4% Doorman Studios -0.5% Doorman Two-Bedroom -5.9%
Greenwich Village
Non-Doorman Studio -4.6% Non-Doorman Two-Bedroom -1.8% Doorman Studios -1.9% Doorman Two-Bedroom -6.1%
Harlem
Non-Doorman Studios -3.6% Non-Doorman One-Bedroom -1.2% Non-Doorman Two-Bedroom -1.4%
Lower East Side
Non-Doorman Studio -0.8% Non-Doorman Two-Bedroom -4.6% Doorman Studios -1.1% Doorman One-Bedroom -2.2%
Midtown East
Non-Doorman Studio -0.5%
Midtown West
Non-Doorman One-Bedroom -0.3% Non-Doorman Two-Bedroom -1.0% Doorman One-Bedroom -1.5% Doorman Two-Bedroom -0.3%
Murray Hill
Doorman Two-Bedroom -1.6%
SoHo
Non-Doorman One-Bedroom -4.19% Non-Doorman Two-Bedroom -4.18% Doorman One-Bedroom -17.1% Doorman Two-Bedroom -5.7%
Tribeca
Non-Doorman One-Bedroom -6.6%
Upper East Side
Doorman Studios -2.2% Doorman One-Bedroom -1.4%
Upper West Side
Non-Doorman One-Bedroom -3.5% Non-Doorman Two-Bedroom -2.4%

Where Prices Increased(monthly)

Chelsea
Doorman Studios 0.8% Doorman Two-Bedroom 0.5%
East Village
Non-Doorman Studios 2.7% Non-Doorman Two-Bedroom 0.8% Doorman Studios 0.2%
Financial District
Non-Doorman Studio 4.3% Non-Doorman One-Bedroom 5.4% Non-Doorman Two-Bedroom 0.6% Doorman One-Bedroom 0.6%
Gramercy
Non-Doorman One-Bedroom 0.6% Doorman One-Bedroom 2.3%
Greenwich Village
Non-Doorman One-Bedroom 0.9% Doorman One-Bedroom 0.5%
Harlem
Doorman Studios 6.4% Doorman One-Bedroom 3.1% Doorman Two-Bedroom 3.7%
Lower East Side
Non-Doorman One-Bedroom 1.7% Doorman Two-Bedroom 10.1%
Midtown East
Non-Doorman One-Bedroom 0.1% Non-Doorman Two-Bedroom 5.1% Doorman Studios 0.6% Doorman One-Bedroom 2.0% Doorman Two-Bedroom 2.6%
Midtown West
Non-Doorman Studio 2.1% Doorman Studios 0.3%
Murray Hill
Non-Doorman Studio 1.3% Non-Doorman One-Bedroom 2.3% Non-Doorman Two-Bedroom 6.9% Doorman Studios 0.9% Doorman One-Bedroom 2.6%
SoHo
Non-Doorman Studio 27.8%
Tribeca
Non-Doorman Studio 25.6% Non-Doorman Two-Bedroom 1.3% Doorman Studios 1.5% Doorman One-Bedroom 0.3% Doorman Two-Bedroom 1.1%
Upper East Side
Non-Doorman Studio 1.7% Non-Doorman One-Bedroom 3.2% Non-Doorman Two-Bedroom 3.3% Doorman Two-Bedroom 2.8%
Upper West Side
Non-Doorman Studios 1.8% Doorman Studios 1.9% Doorman One-Bedroom 1.7% Doorman Two-Bedroom 2.7%
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: February 2016 vs. February 2017
Type February 2016 February 2017 Change
Non-Doorman Studios $2,480 $2,639 6.4%
Non-Doorman One Bedrooms $3,047 $3,164 3.8%
Non-Doorman Two Bedrooms $4,183 $4,196 0.3%
Type February 2016 February 2017 Change
Doorman Studios $2,918 $2,965 1.6%
Doorman One Bedrooms $4,097 $4,189 2.2%
Doorman Two Bedrooms $6,102 $5,969 2.2%

• Studio prices in Battery Park City decreased by 0.3%, one bedroom prices decreased by 2.6%, and two bedroom prices decreased by 0.6%. This is a monthly average decrease of 1.0%. Over the last year, changes have been comparable- prices have dropped by 0.8%, or $37.85. Inventory remained relatively stable, increasing by 7 units from 157 units to 164 units. This is a 4.5% increase in total units.

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

• Inventory in Chelsea increased by 26 units this month, or 3.6%, to 743 units. 40% of the market is non doorman units and the remaining 60% is doorman units. Prices in Chelsea remained relatively stable over the last month. Studio non doorman prices decreased by 2.5%, and doorman prices increased by 0.8%. One bedroom non doorman prices decreased by 1.8%, and doorman prices decreased by 0.2%. Two bedroom non doorman prices decreased by 3.5%, and doorman prices increased by 0.5%. Over the last year, prices have decreased by 4.7%.

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

• Non doorman prices in the East Village changed as follows: studio prices increased by 2.7%, one bedroom prices decreased by 1.2%, and two bedroom prices increased by 0.8%. Doorman studio prices increased by 0.2%, one bedroom prices decreased by 3.2%, and two bedroom prices decreased by 6.2%. This large change can be attributed to very low inventories in that sector- last month there were only 20 two bedroom doorman units and this month there were 27. Non doorman units are far more popular than doorman units (85% vs. 15%). Over the last year, prices have increased by 2.1%, indicating stability over the long term compared to monthly changes. Inventory in the East Village decreased by 29 units, but since the neighborhood is fairly large, this only equates to a 4.7% decrease in prices. Last month, there were 617 units on the market and this month there were 588 units.

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

• Prices were largely strong over the last month in the Financial District. Studio non doorman and doorman prices changed by +4.3% and -0.5%, respectively. One bedroom non doorman and doorman prices changed by increased by +5.4% and +0.6%, respectively. Two bedroom non doorman and doorman prices changed by +0.6% and -0.2%, respectively. Prices increases were much larger this month than were price decreases. Over the last year, prices have increased by 2.0%, which equates to a $79.91 increase. Inventory increased by 13.2% or 59 units. Doorman units make up 88% of the rental market in the Financial District.

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

• Prices in the studio and one bedroom Gramercy sectors remained very stable this month. Studio nondoorman and doorman prices decreased by 1.2% and 0.5%, respectively. One bedroom nondoorman and doorman prices increased by 0.6% and 2.3%, respectively. Two bedroom non doorman prices decreased by 7.4%, and doorman prices decreased by 5.9%. Both of these sectors grew by only two units (non doorman from 30 to 32 units and doorman from 20 to 22 units). However, last month, two bedroom non doorman units were as expensive as $7,995 a month, and this month the highest priced non doorman unit was only $6,795. Last month, there were 11 doorman units below $6,000 a month and 9 units above that price. This month, there were 14 units below that price and only 8 units above that price. Inventory remained very stable in Gramercy this month, increasing by 7 units or 3.5%, for a total of 208 units this month. The neighborhood is nearly split between doorman and nondoorman units, at 44% and 56% of total unit respectively.

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

• Prices decreased more than increased this month in Greenwich Village. Studio non doorman prices decreased by 4.6%, studio doorman prices decreased by 1.9%, one bedroom non doorman prices increased by 0.9%, one bedroom doorman prices increased by 0.5%, two bedroom non doorman prices decreased by 1.8%, and two bedroom doorman prices decreased by 6.1%. The Atrium at 160 Bleeker Street had the three lowest priced units in that market this month- all priced below $4,000 a month. Without these units, the average unit price in this sector would be nearly $6,000. An already low quantity of two bedroom doorman units in January, 44 units, dropped to 31 units this month. Over the last year, prices have decreased by an average of 1.1%. Inventory in this neighborhood remained much more consistent than it did last month, when it decreased by 9.7%. This month, it increased by 2.4% or 15 units, to a new total of 638 units. Two-thirds of these units are in non-doorman buildings, and the remaining one-third of units is in buildings with doormen.

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

• Prices in Harlem remained relatively stable this month. On average, studio prices increased by 1.4%, one bedroom prices increased by 1.0%, and two bedroom prices increased by 1.1%. This equates to a monthly change of 1.5% or $41.08. Over the last year, prices have increased by $112.81, which is a 4.4% increase. Inventory increased by 9.4% this month, from 819 units to 896 units. 74% of inventory exists in non doorman buildings.

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

• Over the last month, inventory on the Lower East Side increased by 67 units. Most of this increase was in the non doorman sector, which composed 81% of the market this month; namely, a new building at 155 Attorney Street. The new development is seven stories and 37 units, and started renting out in February. Despite this new rental having some of the highest two bedroom non doorman prices on the market this month, rents in that sector decreased by 4.6% due to other lower priced inventory on the market. On the other hand, two bedroom doorman prices increased 10.1%, partly due to a luxury rental at 175 East Broadway. Studio price changes averaged -0.9% and one bedroom price changes averaged -0.2%. Ove the last year, prices in the Lower East Side increased 2.0%.

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

• Prices in Midtown East continued to be stable this month. Studio non doorman prices decreased by 0.5%, studio doorman prices increased by 0.6%, one bedroom non doorman prices increased by 0.1%, one bedroom doorman prices increased by 2.0%, two bedroom non doorman prices increased by 5.1%, and two bedroom doorman prices increased by 2.6%. Units, like the most expensive one on the two bedroom doorman market this month (#1 at 157 East 37th Street), had unique characteristics like 20 foot ceilings that garnered high rents. Over the last year, prices have increased by 3.5%. Inventory in this neighborhood increased by 3.3% or 31 units, from 952 units to 983 units

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

• Prices in Midtown West were very stable this month. Studio non doorman prices increased by 2.1%, studio doorman prices increased by 0.3%, one bedroom non doorman prices decreased by 0.3%, one bedroom doorman prices decreased by 1.5%, two bedroom non doorman prices decreased by 1.0%, and two bedroom doorman prices decreased by 0.3%. This equates to a monthly change of -0.3%, or -$9.77. Over the last year, prices have decreased by 3.1%, or $109.74. Inventory levels in Midtown West remained even more consistent in February than they did in January, when they decreased by 2.8% or 27 units. This month, they increased by 1.2% or 11 units, from 921 units to 932 units.

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

• Prices in Murray Hill remained very stable. The largest change was in the price of two bedroom non doorman units, which increased by 6.9%, due to high end rentals at places like 223 East 31st Street (deck space in a 100 year old building). Other changes changed from -1.6% (two bedroom doorman prices) to +2.6% (one bedroom doorman prices). Over the last year, prices in Murray Hill have increased by 1.2%, indicating overall market stability in this neighborhood. Inventory in Murray Hill increased by 25 units or 3.5%, from 710 units to 735 units. 40% of the market is non doorman units.

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

• After remaining constant at 121 units in November and December, SoHo inventory decreased by 19 units in January. This month, inventory increased by 32 units, surpassing the 121 unit level all the way to 134 total units. 94% of these units are in non doorman buildings. Prices in SoHo varied this month, ranging between +27.8% (studio non doorman prices) and -17.1% (one bedroom doorman prices), but the average price change was -4.9% for the month. Over the year, prices have increased by 16.8%. Extremely low inventory explains the large month to month, and year to year swings.

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

• Prices in TriBeCa varied this month. The largest change was in the price of studio non doorman units, where prices increased by 25.6%. The rest of the changes ranged from -6.6% (one bedroom non doorman prices) and +1.5% (studio doorman prices). These large swings can be attributed to low inventory levels. Inventory this month increased by 15.3% or 20 units, from 131 units to 151 units. Over the last year, prices have increased by 4.6%. This is an increase of $243.05.

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

• Inventory on the Upper East Side decreased by 1.2% this month, going from 1,709 units to 1,688 units. Prices were also very stable this month. Studio non doorman prices increased by 1.7%, studio doorman prices decreased by 2.2%, one bedroom non doorman prices increased by 3.3%, one bedroom doorman prices decreased by 1.4%, two bedroom non doorman prices increased by 3.2%, and two bedroom doorman prices increased by 2.8%. This is an average change of 1.4% or $47.03. Over the last year, prices have decreased by 0.1%, or $4.15.

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

• Prices on the Upper West Side have increased by $20.41 over the last month and decreased by $3.62 over the last year. These are +0.6% and -0.1% changes, respectively. This month, studio non doorman prices increased by 1.8%, studio doorman prices increased by 1.9%, one bedroom non doorman prices decreased by 3.5%, one bedroom doorman prices increased by 1.7%, two bedroom non doorman prices decreased by 2.4%, and two bedroom doorman prices increased by 2.7%. Inventory increased by 16 units or 1.2% this month, from 1,295 units to 1,311 units. The market is split nearly in half between non doorman units (48%) and doorman (52%) units.

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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