NEW YORK, Feb. 20, 2019 /PRNewswire/ -- The rental market
remained hot this January as the weakening home sales market
motivated many would-be buyers to rent instead. While strong demand
pushed up rents everywhere except for along the L train, the
StreetEasy Manhattan Rent Indexii reached a new high for
the month of January and increased at the fastest pace in the
city's most expensive neighborhoods — particularly in Downtown Manhattaniii and northwest
Brooklyniv, where rents
rose by 2.4 percent and 3.5 percent, reaching $3,724 and $3,058,
respectively.
![(PRNewsfoto/StreetEasy) (PRNewsfoto/StreetEasy)](https://mma.prnewswire.com/media/660146/StreetEasy_Logo.jpg)
Manhattan rent growth eclipsed
Brooklyn and Queens again in January, which before late
last year, which has not occurred since 2012. Manhattan rents rose to $3,204 — an annual increase of 2.6 percent, and
the fastest annual pace since early 2016. Along with rising rents,
rental concessionsv continued to fall across the city
compared to the year before, deviating from the seasonal trend of
discounts rising in the cooler months. In Manhattan, the share of rentals advertising
concessions dropped at the fastest annual pace since 2010 - down by
8.6 percentage points annually to 13.2 percent.
"Manhattan home prices have
reached lows we haven't seen since 2015, and inventory levels are
at historic highs, leading many to believe that now may be the time
to buy. But with a median price above $1
million, purchasing a home in Manhattan is still too expensive for many in
this market," says StreetEasy Economic Data Analyst Nancy Wu. "Many would-be buyers are opting for
the flexibility of renting in some of the most expensive areas of
the city — which in turn is creating an unusually competitive
winter rental season."
See below for additional sales and rental market trends across
Manhattan, Brooklyn and Queens.
January 2019 Key Findings —
Manhattan
- Rents increased at the fastest pace since 2016. The
StreetEasy Manhattan Rent Index increased 2.6 percent annually,
reaching $3,204.
- The amount of landlord concessions dropped at the fastest
annual pace since 2010. The share of rentals offering
concessions fell by 8.6 percentage points since last year, with
only 13.2 percent of rentals advertising concessions.
- Sales prices dropped at the fastest pace on record. The
StreetEasy Manhattan Price Indexvi dropped 4.2 percent
to $1,122,413 — the lowest level
since 2015.
- The number of price cuts rose. The share of homes that
had their price cut reached 14.9 percent in Manhattan – up 2.9 percentage points since
last January. The share of price cuts in Upper
Manhattanvii rose 7.1 percentage points, reaching 14.5
percent — the largest annual increase in the borough.
- Homes lingered on the market. The median days on market
increased 11 days in Manhattan,
reaching 111 days. Homes in Downtown
Manhattan stayed on the market for a median of 120 days — 28
days longer than last year, and the longest period since early
2011.
January 2019 Key Findings —
Brooklyn
- Rents continued to climb. The StreetEasy Brooklyn Rent
Index increased 1.6 percent annually to $2,587. Rents rose in all submarkets except
North Brooklynviii,
where uncertainty over the canceled L train shutdown remained a
factor. North Brooklyn rents fell
1.4 percent to $3,038.
- The share of rental concessions matched 2015
lows. Only 8.2 percent of rentals advertised concessions
in January – down 10.6 percentage points from last year, and the
lowest share since fall 2015.
- Prices were unchanged overall but grew in South Brooklyn. The StreetEasy Brooklyn
Price Index remained the same as last year, at $706,832. Prices rose to $715,952 in the South
Brooklynix submarket, up 3.7 percent from last
year.
- More than 1,300 new homes were listed. Borough-wide,
40.3 percent more homes hit the market in Brooklyn than this time last year, with 1,313
homes added to the total inventory. This contributed to total
inventory in the borough increasing by 28.8 percent.
- North Brooklyn homes spent
nearly a month longer on the market. The median number of days
on market in North Brooklyn
increased by 27 in January, up to 104 days total. Borough-wide, the
median time on the market rose 11 days to 101 days total.
January 2019 Key Findings —
Queens
- Rents rose across the borough. The StreetEasy Queens
Rent Index increased 2.4 percent annually, reaching $2,164. Rents rose the most in Northwest Queensx, reaching
$2,243 – up 1.6 percent from last
year.
- Concessions were harder to find. The share of rentals
advertising concessions dropped 5.2 percentage points in the
borough – down to 9.1 percent. Rental concessions in Northwest Queens were down 5.9 percentage
points, with 10.8 percent of rentals advertising concessions.
- Price growth slowed. The StreetEasy Queens Price
Index increased 3.1 percent, the slowest annual pace since
May 2017. Prices reached $515,966 — an increase over last year, but the
lowest level in five months.
- Price cuts rose slightly. The share of homes with a
price cut increased by 2.3 percentage points in January, with 9.0
percent of homes receiving a discount. Discounts were easiest
to find in Central
Queensxi, where 10.7 percent of homes had a price
cut — up 4.2 percentage points annually.
- Homes lingered on the market for an additional two
weeks. In Queens, the median number of days on market
increased by 14 to 92.5 days, the largest annual increase in time
on market of the three boroughs.
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/. Definitions
of StreetEasy's metrics and monthly data from each report can be
downloaded at https://streeteasy.com/blog/data-dashboard/.
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.
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 The StreetEasy Rent Indices are monthly indices
that track changes in rent for all housing types and are currently
available from January 2007 in
Manhattan, January 2010 in Brooklyn, and January
2012 in Queens. Each index
uses a repeat-sales method similar that used to calculate the
StreetEasy Price Indices. The repeat method evaluates rental price
growth based on homes in a given geography that have listed for
rent more than once. More details on methodology here.
iii The Downtown Manhattan submarket includes Civic
Center, Financial District, Tribeca, Stuyvesant Town/PCV, SoHo,
Little Italy, Lower East Side, Chinatown, Battery Park City,
Gramercy Park, Chelsea,
Greenwich Village, East Village,
West Village, Flatiron and Nolita.
iv The Northwest Brooklyn submarket includes Boerum
Hill, Brooklyn Heights, Carroll Gardens, Clinton Hill, Cobble Hill, Columbia St.
Waterfront, Downtown Brooklyn,
DUMBO, Fort Greene, Gowanus and Red
Hook.
v Concessions are defined as advertised, temporary
price reductions in the form of one or more months of free rent.
StreetEasy does not include nontraditional concessions, such as
Netflix packages and discounted amenities. We also do not include
the waiving of broker's fees as concessions.
vi The StreetEasy Price Indices 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. Levels of
the StreetEasy Price Indices reflect average values of homes on the
market. Data on the sale of homes is sourced from the New York City
Department of Finance. Full methodology here.
vii The Upper Manhattan submarket includes Hudson
Heights, Hamilton Heights, Washington
Heights, Inwood, Fort
George, West Harlem, Central Harlem, East Harlem, Manhattanville,
South Harlem and Marble Hill.
viii The North Brooklyn submarket includes
Greenpoint, Williamsburg and East Williamsburg.
ix The South Brooklyn submarket includes Sunset
Park, Bay Ridge, Dyker Heights, Bensonhurst, Bath Beach, Gravesend,
Borough Park, Ocean Parkway, Kensington, Coney Island, Brighton
Beach, Ditmas Park, Seagate, Flatbush, Midwood, Sheepshead Bay,
Manhattan Beach, East Flatbush, Canarsie, Flatlands, Marine Park, Mill Basin, Bergen Beach, Old Mill
Basin, Greenwood and Gerritsen Beach.
x The Northwest Queens submarket includes
Astoria, Long Island City, Sunnyside and Ditmars-Steinway.
xi The Central
Queens submarket includes Woodside, Jackson
Heights, East Elmhurst,
North Corona, Elmhurst, Corona, Maspeth, Middle
Village, Ridgewood,
Glendale, Rego Park and Forest
Hills.
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SOURCE StreetEasy