Manhattan Rental Market Report | MNS is Real Impact Real Estate

MANHATTAN
RENTAL MARKET REPORT

January 2017

Introduction

In January, prices in Manhattan have increased by 0.2%, after decreasing by about the same amount in December.

A Quick Look

In January, prices in Manhattan have increased by 0.2%, after decreasing by about the same amount in December. Over the last year, prices have increased by 1.5%. These are monthly and yearly dollar changes of $8.82 and $58.39. The non doorman to doorman split was even closer to being even this month than it was last month, with 49.4% of units being non doorman, and 50.6% of units being doorman units. Inventory dropped by 2.1%, from 9,807 units to 9,604 units.
A notable change in the studio market was the 9.7% increase in the price of Harlem doorman units. Both this month and last month, the two most expensive units in that sector were from One Carnegie Hill at 215 East 96th Street, a 261 unit doorman building. However, this month, the units were more expensive. There generally were higher priced units on the studio doorman market this month. In December, for instance, 18 units were priced below $2,000 a month, and this month only 7 were that inexpensive.
Gramercy one bedroom prices were also strong in January. Non doorman prices increased 7.6% and doorman prices increased 4.8%. There was a large unit on the market this month that offered use of a private garden and keys to the famous Gramercy Park, which brought up the monthly average. Another unit that boasted high end appliances and a private terrace had the same affect. Gramercy inventory levels are definitely not on the high side in Manhattan, so individual units or buildings can sway month to month averages.
In the two bedroom market, the largest change was in the price of East Village doorman units. Prices here increased by 8.6%. 1 Union Square South is a 240 unit luxury building, but there were high end units from that building both this month and last. However, this month there were fewer inexpensive units on the market than there were in December, and the average increased because of that change in inventory.
The three smallest neighborhoods this month were SoHo (102 total units), TriBeCa (131 units), and Battery Park City (157 units). With those three neighborhoods put aside, as even small additions or subtractions of inventory will result in large percentage swings in those places, the largest increase in inventory occurred on Midtown East. Inventory increased by 11.9%, mainly due to shifts in inventory and more activity at certain buildings like 245 East 40th street and 959 First Avenue.. This is equal to 101 new units being on the market. The one bedroom non doorman sector of the market, for instance, grew by nearly 33%.
Over the last year, prices in Manhattan have increased by 1.5%. Studio non doorman prices have increased by 1.9%, studio doorman prices have decreased by 0.7%, one bedroom non doorman prices have increased by 4.8%, one bedroom doorman prices have increased by 3.9%, two bedroom non doorman prices have increased by 0.9%, and two bedroom doorman prices have decreased by 2.7%. SoHo prices have increased by 20.4%, but this high number can be attributed to very low inventory levels. The rest of yearly price changes ranged from -4.3% (Chelsea) to +4.9% (East Village).
The rental market did not stop for the new year, and with every passing day and every completed transaction, it only keeps evolving. The 2nd avenue Subway line opened to the public on January 1, 2017, and there are three more phases expected to break ground from Houston Street to Harlem.

A Quick Look

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

Where Prices Decreased(monthly)

Battery Park City
Doorman Studios -0.5%
Chelsea
Non-Doorman Studios -2.2% Doorman Two-Bedroom -1.0%
East Village
Non-Doorman Studios -2.3% Non-Doorman Two-Bedroom -1.9%
Financial District
Non-Doorman Studio -8.0% Non-Doorman One-Bedroom -5.1% Non-Doorman Two-Bedroom -7.9%
Gramercy
Non-Doorman Studio -4.0%
Greenwich Village
Doorman Two-Bedroom -1.0%
Harlem
Non-Doorman Studio -2.5% Doorman Two-Bedroom -2.4%
Lower East Side
Doorman Studios -5.6% Doorman One-Bedroom -2.3%
Midtown East
Doorman Studios -2.4% Doorman One-Bedroom -0.4%
Midtown West
Non-Doorman Studios -5.4% Doorman Studios -1.0% Doorman Two-Bedroom -0.2%
Murray Hill
Non-Doorman Studios -0.2%
SoHo
Non-Doorman Studios -11.1% Non-Doorman One-Bedroom -2.6% Non-Doorman Two-Bedroom -6.1%
Tribeca
Non-Doorman Studios -16.2% Non-Doorman One-Bedroom -19.9% Non-Doorman Two-Bedroom -6.4% Doorman Studios -8.3%
Upper East Side
Non-Doorman Studio -0.6% Non-Doorman One-Bedroom -2.3%
Upper West Side
Doorman Studios -0.1%

Where Prices Increased(monthly)

Battery Park City
Doorman One-Bedroom 0.8% Doorman Two-Bedroom 4.2%
Chelsea
Non-Doorman One-Bedroom 5.8% Non-Doorman Two-Bedroom 2.4% Doorman Studios 0.8% Doorman One-Bedroom 3.0%
East Village
Non-Doorman One-Bedroom 3.4% Doorman Studios 5.2% Doorman One-Bedroom 7.4% Doorman Two-Bedroom 8.6%
Financial District
Doorman Studios 1.9% Doorman One-Bedroom 1.2% Doorman Two-Bedroom 2.3%
Gramercy
Non-Doorman One-Bedroom 7.6% Non-Doorman Two-Bedroom 5.7% Doorman Studios 4.8% Doorman One-Bedroom 4.8% Doorman Two-Bedroom 2.2%
Greenwich Village
Non-Doorman Studios 3.1% Non-Doorman One-Bedroom 2.1% Non-Doorman Two-Bedroom 2.3% Doorman Studios 0.003% Doorman One-Bedroom 2.7%
Harlem
Non-Doorman One-Bedroom 0.0% Non-Doorman Two-Bedroom 1.4% Doorman Studios 9.7% Doorman One-Bedroom 3.5%
Lower East Side
Non-Doorman Studios 1.0% Non-Doorman One-Bedroom 3.1% Non-Doorman Two-Bedroom 3.9% Doorman Two-Bedroom 3.2%
Midtown East
Non-Doorman Studios 3.1% Non-Doorman One-Bedroom 1.5% Non-Doorman Two-Bedroom 5.4% Doorman Two-Bedroom 1.3%
Midtown West
Non-Doorman One-Bedroom 1.1% Non-Doorman Two-Bedroom 1.8% Doorman One-Bedroom 2.0%
Murray Hill
Non-Doorman One-Bedroom 0.6% Non-Doorman Two-Bedroom 2.1% Doorman Studios 1.0% Doorman One-Bedroom 1.5% Doorman Two-Bedroom 2.0%
SoHo
Doorman One-Bedroom 6.8% Doorman Two-Bedroom 1.2%
Tribeca
Doorman One-Bedroom 2.2% Doorman Two-Bedroom 3.2%
Upper East Side
Non-Doorman Two-Bedroom 1.8% Doorman Studios 0.7% Doorman One-Bedroom 1.3% Doorman Two-Bedroom 1.1%
Upper West Side
Non-Doorman Studios 0.0% Non-Doorman One-Bedroom 0.9% Non-Doorman Two-Bedroom 0.2% Doorman One-Bedroom 0.1% Doorman Two-Bedroom 1.4%
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: January 2016 vs. January 2017
Type January 2016 January 2017 Change
Non-Doorman Studios $2,466 $2,514 1.9%
Non-Doorman One Bedrooms $3,037 $3,183 4.8%
Non-Doorman Two Bedrooms $4,187 $4,226 0.9%
Type January 2016 January 2017 Change
Doorman Studios $2,974 $2,955 0.7%
Doorman One Bedrooms $4,109 $4,269 3.9%
Doorman Two Bedrooms $6,173 $6,007 2.7%

• Prices in Battery Park remained stable this month, but not quite as stable as last month when the average change was +0.2%. Studio prices this month decreased by 0.5%, one bedroom prices increased by 0.8%, and two bedroom prices increased by 4.2%. This larger increase in two bedroom prices occurred after a small decrease in December. The Visionaire at 70 Little West Street housed the three most expensive three bedroom units on the market this month, which ranged from $9,000 to $9,450. Inventory increased by 6 units or 4%, from 151 units to 157 units.

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

• Inventory in Chelsea barely budged over the last month, increasing by two units, from 718 units to 720 units. This is an increase of less than half a percentage point. Prices were strong in Chelsea this month, with increases in several unit sizes. Studio non doorman and doorman prices decreased by 2.2% and increased by 0.8%, respectively. One bedroom non doorman and doorman prices increased by 5.8% and 3.0%, respectively. Two bedroom non doorman and doorman prices increased by 2.4% and decreased by 1.0%, respectively. Last month, there were even larger price decreases across all unit sizes. Over the last year, prices in Chelsea decreased by 4.3%.

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

• Over the last month, non doorman and doorman studio prices in the East Village have decreased by 2.3% and increased by 5.2%, respectively. Non doorman and doorman one bedroom prices have increased by 3.4% and 7.4%, respectively. Non doorman and doorman two bedroom prices have decreased by 1.9% and increased by 8.6%, respectively. The largest changes were in the doorman sector, which is very low in the East Village. In fact, only 84 out of 617 units in the East Village were in doorman buildings, or 14%. Therefore, this particular sector will be especially subject to percentage swings. Last month, several studio units at 166 2nd Avenue brought the average price down, and since they were not on the market this month, averages increased. There were more expensive units on the one bedroom market and fewer inexpensive units on the two bedroom market this month.

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

• Inventory levels in the Financial District were stable this month, as levels dropped by 4.1% or 19 units, from units to 446 units. The majority of units in the Financial District are doorman units (89%) versus only 11% of units being non doorman units. This low non doorman inventory explains the following percentage swings in prices of units in that building type. To compare, the price changes in doorman units of all sizes were much less varied. Studio non doorman prices decreased by 8.0%, studio doorman prices increased by 1.9%, one bedroom non doorman prices decreased by 5.1%, one bedroom doorman prices increased by 1.2%, two bedroom non doorman prices decreased by 7.9%, and two bedroom doorman prices increased by 2.3%.

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

• Over the last year, prices in Gramercy have remained very stable, decreasing by 0.02%. Prices over the last month have increased by 3.6%. Studio non doorman and doorman prices decreased by 4.0% and increased by 4.8%. One bedroom non doorman and doorman prices increased by 7.6% and 4.8%. Two bedroom non doorman and doorman prices increased by 5.7% and 2.2%. Inventory in Gramercy decreased by 7.4% or 16 units, from 217 units to 201 units.

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

• Inventory in Greenwich Village decreased by 67 units or 9.7%, from 690 units to 623 units. Non doorman and doorman units composed 65% and 35% of the market, respectively. Prices in Greenwich Village remained very stable, as studio doorman and non doorman prices increased by 3.1% and 0.003%, respectively. One bedroom doorman and non doorman prices increased by 2.1% and 2.7%, respectively. Two bedroom doorman and non doorman prices increased by 2.3% and decreased by 1.0%, respectively. Over the last year, prices in this neighborhood have remained even more stable, increasing on average by only 0.4%.

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

• Studio non doorman unit prices decreased by 2.5%, and studio doorman prices increased by 9.7% due to low inventory levels and fewer low priced units on the market (there were seven units below $2,000 a month in January, versus 18 in December). One bedroom non doorman prices increased by 0.0003%, one bedroom doorman prices increased by 3.5%, two bedroom non doorman prices increased by 1.4%, and two bedroom doorman prices decreased by 2.4%. Over the last year, prices have increased by 0.8%. Inventory in Harlem increased by 21 units or 2.6%, from 798 units to 819 units.

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

• Inventory on the Lower East Side was very stable this month, increasing by 4 units or 2.0%, from 197 units to 201 units. 80% of these units were non doorman units. Prices remained very stable over the last month. Studio prices decreased an average of 2.3%, one bedroom prices increased an average of 0.4%, and two bedroom prices increased an average of 3.5%. This equates to an average overall change of 0.5%. Over the last year, prices have decreased 0.9%.

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 remained stable this month, after experiencing a stable month of December. Studio non doorman prices increased by 3.1%, studio doorman prices decreased by 2.4%, one bedroom non doorman prices increased by 1.5%, one bedroom doorman prices decreased by 0.4%, two bedroom non doorman prices increased by 5.4%, and two bedroom doorman prices increased by 1.3%. Over the last year, prices have increased by an average of 0.7%. Inventory increased by 11.9% or 101 units, from 851 units to 952 units, after barely budging last month. There were also larger amounts of activity at buildings like 245 East 40th street and 959 First Avenue.

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

• Inventory in Midtown West remained consistent, decreasing by 2.8% or 27 units, from 948 units to 921 units. Studio non doorman prices decreased by 5.4%, studio doorman prices decreased by 1.0%, one bedroom non doorman prices increased by 1.1%, one bedroom doorman prices increased by 2.0%, two bedroom non doorman prices increased by 1.8%, and two bedroom doorman prices decreased by 0.2%. This equates to an average price change of -0.03%, or less than one dollar. Over the last year, prices have decreased by an average of 2.2%.

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

• Prices in Murray Hill remained relatively stable. Studio nondoorman prices decreased by 0.2% and doorman prices increased by 1.0%. One bedroom non doorman prices increased by 0.6% and doorman prices increased by 1.5%. Two bedroom non doorman prices increased by 2.1% and doorman prices increased by 2.0%. This is an average monthly increase of 1.3% and $44.62. Over the last year, prices have decreased by an average of 0.5%. Inventory in Murray Hill increased by 8.4% or 55 units, from 655 units to 710 units, after decreasing by 7.5% last month.

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

• Inventory in SoHo decreased by 19 units or 15.7%, after remaining at exactly 121 units for the last two months. Currently, 94% of units on the market in SoHo were non doorman units. No other borough had a larger proportion of non doorman units. Prices in SoHo decreased by an average of 0.9% over the last month, and increased by 20.4% over the last year. Studio non doorman prices decreased by 11.1%, one bedroom non doorman and doorman prices decreased by 2.6% and increased by 6.8% respectively, and two bedroom non doorman and doorman prices decreased by 6.1% and increased by 1.2% respectively. This is caused by extremely low inventory and a unique rental market. There were no doorman studio units on the market this month.

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

• Studio prices dropped in TriBeCa this month- non doorman price decreased by 16.2% and doorman prices decreased by 8.3%. One bedroom non doorman prices also decreased, by 19.9%, as did two bedroom non doorman prices, by 6.4%. One bedroom and two bedroom doorman prices both increased, but only by 2.2% and 3.2%, respectively. This equates to a monthly price decrease of 7.0%. Over the last year, prices have increased by 3.0%. TriBeCa is the second smallest neighborhood in Manhattan by unit count, composed this month or only 131 units, down 8 units or 5.8% from last month. This small inventory will result in large price change swings.

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

• Prices on the Upper East Side remained stable this month, as they often do, increasing by an average of 0.6%. The largest increase was a 1.8% increase in the price of two bedroom non doorman units and the largest decrease was a 2.3% decrease in the price of one bedroom non doorman units. Over the last year, prices have decreased by an average of 1.9%. Inventory decreased by 109 units or 6%, from 1,818 units to 1,709 units. The majority of units in this neighborhood are nondoorman units, which compose 60% of total units.

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

• Price changes on the Upper West Side were minimal this month, even moreso than last month. Studio non doorman and doorman prices increased by 0.04% and decreased by 0.1% respectively, one bedroom non doorman and doorman prices increased by 0.9% and 0.1% respectively, and two bedroom non doorman and doorman prices increased by 0.2% and 1.4% respectively. Over the last month, prices increased on average 0.6% or $20.05, and over the last year, they decreased by 0.6% or $20.35. Inventory decreased by 98 units or 7%, from 1,393 units to 1,295 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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