NEW YORK, Jan. 25, 2018 /PRNewswire/ -- As the typical
winter slowdown hit the New York
City real estate market in late 2017, landlords cut asking
rents, causing the share of rental discounts to rise dramatically
across Manhattan, Brooklyn and Queens, according to the Q4 2017 StreetEasy®
Market Reportsi.
More than a third of Manhattan
rentals (34 percent) and 28 percent of Queens rentals received price cuts in the last
quarter of 2017 — the highest levels on StreetEasy
recordii. Twenty-eight percent of rentals in
Brooklyn saw a price cut, just
below the borough's all-time high of 29 percent, recorded in the
fourth quarter of 2016.
Compared to the same time the previous year, median rents in
Manhattan and Brooklyn were essentially flat at $3,125 and $2,524,
up only 0.1 percent and 0.4 percent, respectively. Despite seeing
the sharpest growth of the three boroughs in 2017, median rent in
Queens dropped 1.3 percent
year-over-year to $2,066, making this
the first quarter to show a rent decline since StreetEasy began
tracking rents in the borough in 2012iii. Within each
borough, all submarket rents grew less than 2 percent
year-over-year. The largest rent drops were recorded in
Northwest Queens (down 2.5
percent, to $2,129) and Prospect Park
(down 0.9 percent, to $2,619).
"While a flood of new construction has been the main driver of
the rental market slowdown we've witnessed over the last year, the
fourth quarter's rent cuts are more far-reaching than in years
past," said StreetEasy Senior Economist Grant Long. "The cooling in the market is no
longer limited to new, high-end buildings in select pockets of the
city — there's a broader trend of rents topping out across all
price points. The slowdown is forcing landlords across the city to
cut deals, and renters now have the most negotiating leverage in
years."
Q4 2017 Key Findings - Manhattan
- Rents stagnated, mirroring 2016 levels. They rose just
0.1 percent — or $5 — over the fourth
quarter of 2016, reaching a median of $3,125iv.
- Rental discounts hit a record high. More than one third
(34 percent) of rental units on StreetEasy received cuts to their
asking rent in late 2017. Units in Stuyvesant Town/Peter Cooper
Village, Morningside Heights, and Lincoln
Square saw the most cuts — to 57, 54, and 45 percent of
their units, respectively.
- Manhattan resale prices
stagnated. The median rose just 0.6 percent to $1,166,565v.
- Upper Manhattan resale
prices reached an all-time high. Upper Manhattan prices rose the most of any
submarket — up 4.5 percent to $528,912.
- Luxury home prices fell. Prices for the most expensive
homes fell by 1.9 percent since last year to a median of
$4,238,027. Units in the Upper West
Side offered the most price cuts, with 24 percent of luxury units
seeing their prices reduced, up from 17 percent during the same
period last year.
Q4 2017 Key Findings - Brooklyn
- Brooklyn rents grew at the
slowest pace on record. Median rents rose just 0.4 percent to
$2,524, marking the slowest growth
rate ever recorded by StreetEasy in the borough.
- Prospect Park rents dropped the most. Rents fell 0.9
percent year-over-year to $2,619, the
most of any Brooklyn submarket.
Thirty percent of units in the submarket received cuts to their
asking rent in the fourth quarter of 2017 — 4 percent more than
last year, and an all-time high.
- Rental units offering discounts reached their second-highest
level. Twenty-eight percent of Brooklyn rentals listed during the quarter had
their asking rents cut, just shy of the borough's record high of 29
percent in the same period in 2016. Rent cuts were most prevalent
in Downtown Brooklyn (46 percent),
Dumbo (43 percent), and Cobble Hill (36 percent).
- Resale prices rose. Despite stagnating at the end of
2016, Brooklyn resales prices grew
2.5 percent since last year to $748,527.
- North Brooklyn prices grew
to their highest levels, while inventory fell. Despite falling
prices in 2016 following the announcement of the L train shutdown,
North Brooklyn resale prices grew
6.2 percent to a median of $1,165,030, the highest resale price on record.
Meanwhile, inventory fell by 9.2 percent, marking the first time
that inventory has declined in the area since 2013.
Q4 2017 Key Findings – Queens
- Queens median rents
dropped. Despite steady rent growth in 2017, rents in
Queens fell 1.3 percent
year-over-year in the final quarter to a median of $2,066.
- Rents fell the most in Northwest
Queens. The decline in Queens was largely driven by Northwest Queens, where rents fell 2.5 percent
amid a glut of high-end homes in the area.
- Cuts to rents reached an all-time high. Landlords cut
asking rents on 28 percent of Queens rentals in the fourth quarter of 2017 —
up 2 percent since last year. Rent cuts were most prevalent in
Corona (44 percent), College Point (36 percent), and Long Island City (33 percent).
- Queens resale prices rose
twice as fast as last year. The median resale price in
Queens rose 6.1 percent
year-over-year to $509,217. The
borough's price growth was led by Central and Northeast Queens, where resale prices rose
more than 8 percent.
- Northeast Queens' resale
price was highest on record. Resale prices in Northeast Queens grew 8.2 percent to a median
of $588,052, the highest ever
recorded by StreetEasy.
The complete StreetEasy Market Reports for Manhattan, Brooklyn and Queens, with additional neighborhood data and
graphics, can be viewed at
streeteasy.com/blog/research/market-reports/.
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 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, Brooklyn and Queens 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, Brooklyn and
Queens with more than a decade of
history for most metrics. The reports are compiled by the
StreetEasy Research team. For more information,
visit https://streeteasy.com/blog/research/market-reports/.
StreetEasy tracks data for all five boroughs within New York
City, but currently only produces reports for Manhattan,
Brooklyn and Queens.
ii StreetEasy tracks the share of rentals discounted
since 2010 in Manhattan,
Brooklyn, and Queens.
iii StreetEasy tracks rent prices and annual growth
rates from 2007 in Manhattan, 2010
in Brooklyn, and 2012 in
Queens.
iv 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-price-and-rent-indices/
v 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 2007 in Brooklyn and Queens. 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 the
sale of homes is sourced from the New York City Department of
Finance. Full methodology
here: http://streeteasy.com/blog/methodology-price-and-rent-indices/
View original
content:http://www.prnewswire.com/news-releases/manhattan-and-queens-rentals-experience-record-volume-of-price-cuts-300587851.html
SOURCE StreetEasy