NEW YORK, April 28, 2017 /PRNewswire/ -- Rents in both
Manhattan and Brooklyn continued to decline as new
construction saturated the market, according to the Q1 2017
StreetEasy® Market Reportsi.
"A surge in new construction, particularly at the high end of
the market, has had a ripple effect throughout the market and
pushed down rents across the city, particularly in Brooklyn," said StreetEasy Senior Economist
Grant Long. "Renters planning on signing a new lease this year are
likely to have more negotiating power as competition starts picking
up among new buildings vying for the attention of prospective
tenants.
"On the for-sale side, homes spent a bit longer on the market
than usual in Q1, but this will likely fall as we get into peak
home shopping season this summer," Long added. "If you're looking
to buy this year, expect strong competition throughout Manhattan and Brooklyn, especially in more affordable areas
that are attractive for first-time buyers."
Q1 2017 Key Findings - Manhattan
- Manhattan rent prices
continue to decline. Manhattan's median rent price was down 1
percent compared to last year and has dropped steadily since last
fallii.
- Upper Manhattan the only
Manhattan submarket where rent
prices rose. The median rent price in Upper Manhattan was
up 3.2 percent year-over-year, though the pace of growth slowed
from the prior quarter.
- Rents in hot Downtown
Manhattan neighborhoods fell the most. Of the 19
neighborhoods where median asking rents fell year-over-year, 11
were in the Downtown submarket, including Little Italy, Battery
Park City, West Village and Greenwich
Village.
- Median resale price in Manhattan rose just over 1 percent since last
March. The Manhattan median
resale price increased slightly to $987,997 in Q1 2017iii. Prices rose
the most in Upper Manhattan, up 6.5 percent from Q1 2016 to
$658,393.
- Homes in Manhattan spent
nearly 80 days on the market in Q1 2017, the highest level since
2011. In Midtown, homes spent a median of 92 days on the
market, the longest period among all Manhattan submarketsiv.
Q1 2017 Key Findings - Brooklyn
- Brooklyn rents fell to
their lowest level since Q3 2014. Brooklyn's median rent price fell 4.2 percent
relative to Q1 2016 and dropped steadily since fall 2016.
- New construction around Downtown
Brooklyn weighed on the Brooklyn rental market. Renters had 27.6
percent more options to choose from in Q1 2017 relative to the same
period in 2016. Inventory in South
Brooklyn jumped the most – up 45 percent
year-over-yearv.
- Brooklyn's median resale
home price rose almost 6 percent over the past year. The median
resale price was $578,290 in Q1 2017,
with Prospect Park reporting the greatest annual price growth, up
11.7 percent since Q1 2016.
- Prices rose the most in more affordable submarkets. In
East Brooklyn, the median resale price was up 9 percent to
$493,612. In South Brooklyn, the median resale price rose 7
percent to $435,068.
- North Brooklyn was the only
Brooklyn submarket with falling
prices. The median resale price fell 4.75 percent from Q1 2016
to a median resale price of $865,804.
- Buyers had more homes to choose from in Q1. There were
5.3 percent more homes for sale in Brooklyn relative to the same period last
yearvi. North Brooklyn
reported the greatest inventory gains among all Brooklyn submarkets, up 27.8 percent from Q1
2016.
The complete StreetEasy Market Reports for Manhattan and Brooklyn with additional analysis,
neighborhood data and graphics can be viewed at
streeteasy.com/blog/market-reports.
Region
|
March 2017
StreetEasy Price
Index
|
Annual
Change
|
March 2017
StreetEasy Rent
Index
|
Annual
Change
|
Manhattan
|
$987,997
|
1.1%
|
$3,199
|
-1.0%
|
Downtown
|
$1,206,675
|
0.3%
|
$3,610
|
-0.9%
|
Midtown
|
$852,068
|
-0.2%
|
$3,276
|
-2.6%
|
Upper West
Side
|
$1,081,744
|
1.5%
|
$3,084
|
-1.7%
|
Upper East
Side
|
$1,001,145
|
1.8%
|
$2,694
|
-0.3%
|
Upper
Manhattan
|
$658,393
|
6.5%
|
$2,397
|
3.2%
|
Brooklyn
|
$578,290
|
5.9%
|
$2,771
|
-4.2%
|
North
Brooklyn
|
$865,804
|
-4.7%
|
$2,873
|
-9.6%
|
Northwest
Brooklyn
|
$857,042
|
3.4%
|
$3,012
|
-2.6%
|
Prospect
Park
|
$832,574
|
11.7%
|
$2,709
|
-4.7%
|
South
Brooklyn
|
$435,068
|
7.0%
|
$1,719
|
1.7%
|
East
Brooklyn
|
$493,612
|
9.1%
|
$2,477
|
3.6%
|
About StreetEasy
StreetEasy is New York
City's leading local real estate marketplace on mobile and the
web, providing accurate and comprehensive for-sale and for-rent
listings from hundreds of real estate brokerages
throughout New York City and the
major NYC metropolitan area. StreetEasy adds layers of
proprietary data and useful search tools to help home shoppers and
real estate professionals navigate the complex real estate markets
within the five boroughs of New York City, as well
as Northern New Jersey and the Hamptons.
Launched in 2006, StreetEasy is based in the Flatiron
neighborhood of Manhattan. StreetEasy is owned and operated by
Zillow Group (NASDAQ: Z and ZG).
StreetEasy is a registered trademark of Zillow, Inc.
i The StreetEasy Market Reports are a monthly
overview of the Manhattan and Brooklyn sales
and rental markets. Every three months, a quarterly analysis is
published. The report data is aggregated from public recorded sales
and listings data from real estate brokerages that provide
comprehensive coverage of Manhattan and Brooklyn,
with most metrics dating back to 1995 in Manhattan and
2005 in Brooklyn. The reports are compiled by the StreetEasy
Research team. For more information,
visit http://streeteasy.com/blog/market-reports/. StreetEasy
tracks data for all five boroughs within New York City, but
currently only produces reports
for Manhattan and Brooklyn.
ii Similar to the StreetEasy Price Indices, median rents
are measured by the StreetEasy Rent Indices. By including only
valid and verified listings from StreetEasy and employing a repeat
rentals approach, the indices emphasize the changes in rent on
individual properties and not between different sets of properties.
Full methodology
here: http://streeteasy.com/blog/methodology-streeteasy-rent-indices/
iii Median resale price is measured by the StreetEasy
Price Indices, monthly indices that track changes in resale prices
of condo, co-op, and townhouse units. Each index uses a
repeat-sales method of comparing the sales prices of the same
properties since January
1995 in Manhattan and January
2005 in Brooklyn. Given this methodology, each index
accurately captures the change in home prices by controlling for
the varying composition of homes sold in a given month. Data on
sales of homes is sourced from the New York City Department of
Finance. Full methodology
here: http://streeteasy.com/blog/methodology-streeteasy-price-indices/
iv Time on market is measured as the numbers of days
from the original listing on StreetEasy to when it enters
contract.
v Rental inventory data is based on rental listings of
condos, co-ops, townhouses and single-family homes available on
StreetEasy.
vi Sale inventory data is based on sales listings of
condos, co-ops, townhouses and single-family homes available on
StreetEasy.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/new-construction-easing-rental-pressure-in-manhattan-and-brooklyn-300447396.html
SOURCE StreetEasy