NEW YORK, April 18, 2019 /PRNewswire/ -- As the
New York City sales market
continued to weaken in the first quarter of 2018, asking rents
across the city rose to record highs, according to the latest
StreetEasy Market Reports.
The StreetEasy Manhattan Rent Indexii reached a new
peak for any first quarter at $3,217,
while rents in Brooklyn and
Queens reached all-time highs of
$2,608 and $2,173, respectively. Rents declined in only one
area of the city, North
Brooklyniii, amid an oversupply of inventory that
remained vacant as a result of the anticipated L train shutdown.
Rents in the submarket fell to $3,061, a slight decrease of 0.5%.
As rents rose, landlords were less likely to offer markdowns on
asking prices. All analyzed boroughs saw a significant reduction in
the share of units offering rent cuts. Brooklyn's share saw the largest
year-over-year drop since 2011: down 6.7 percentage points from
last year to 17.1% of units. At the same time, the median rent cut
also shrank in all three boroughs, dropping to the smallest
discount on record in Brooklyn and
Queens, each at 3.4%, and dipping
close to an all-time low in Manhattan at 3.9%.
"We're coming out of an unusually competitive winter rental
season in which many renters found themselves in a weaker
negotiating position than in years past," says StreetEasy Senior
Economist Grant Long. "As
would-be buyers opt to embrace renting while sale prices are
falling, the competition that new grads and other transplants
entering the city's workforce would typically bring this time of
year will be even more pronounced. This spring, landlords will have
the upper hand, and renters should be prepared to move quickly to
make sure they get a place they love."
See below for additional sales and rental market trends across
Manhattan, Brooklyn and Queens.
Q1 2019 Key Findings — Manhattan
- Rents rose at the fastest pace since 2016. The
StreetEasy Manhattan Rent Index rose to $3,217 – the highest first-quarter level on
record, up 2.6% since last year. Rents in Manhattan have not risen this quickly since
2016.
- Rent cuts were harder to find and smaller than ever. The
share of rent cuts dipped 3.6 percentage points, down to 23.4%. The
median rent cut also decreased slightly to 3.9% — down 0.2
percentage points from last year.
- Sales prices dropped at the fastest pace since 2010. The
StreetEasy Manhattan Price Indexiv fell 5% to
$1,105,671. Prices in
Midtownv dropped the most, falling 5.5% to $1,155,483 — a low not seen since 2015.
- Price levels in the luxury market dipped below $4 million. The StreetEasy Price Index for
the luxury tier — the top 20% of the market — dipped below
$4 million for the first time since
2013. Luxury prices were down 4.7% to $3,982,868.
- 1 in 4 homes had a price cut. Nearly a quarter of
Manhattan homes (24.6%) received a
price cut in the first quarter — with the share rising 2.6
percentage points since last year.
Q1 2019 Key Findings — Brooklyn
- Rents reached an all-time high. The StreetEasy Brooklyn
Rent Index rose 2.2% to $2,608, an
all-time high for the borough. Northwest
Brooklyn rents rose the most — up 3.3% to $3,068.
- The share of rent cuts fell the most. Only 17.1% of
rentals had a price cut in the first quarter, down 6.7 percentage
points from last year and dipping to the lowest share since
2011.
- Sales prices rose slightly. The StreetEasy Brooklyn
Price Index rose 0.4% to $712,413.
Prices increased the most in South
Brooklynvi — up 4.6% to $726,979.
- More sellers cut their asking price. The share of homes
with price cuts rose 6.3 percentage points to 21.2% borough-wide.
While the share of price cuts grew, the median price cut remained
unchanged from the previous year at 5.2%.
- Homes took two weeks longer to sell. Homes for sale
stayed on the market for 14 days longer than last year — up to 85
days total, the longest period since 2012.
Q1 2019 Key Findings — Queens
- Rents reached an all-time high. The StreetEasy Queens
Rent Index increased 2.5% to an all-time high of $2,173. Rents in Northwest Queensvii rose the most —
up 2.3% to $2,264.
- Landlords offered rent cuts on 1 in 5 units. The share
of rent cuts fell to 20.6% in the borough — down 2.0 %age points
annually. Discounts were hardest to find in Northeast Queensviii, where the
share dropped 2.7 percentage points to 19.2%.
- Defying the broader slowdown, Queens home prices continued to rise. The
StreetEasy Queens Price Index increased 3.0 % year-over-year to
$517,996.
- Sales inventory increased significantly. Inventory
jumped 26.1% over the same time last year in the borough, bringing
the number of homes for sale close to an all-time high of
4,435.
- Price cuts were rare but more common than last year.
Queens sellers were the least
likely to cut their asking price, with 17% of homes offering a
discount, up 5.0 percentage points from last year.
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 North Brooklyn submarket includes
Greenpoint, Williamsburg and East Williamsburg.
iv 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.
v The Midtown submarket includes Roosevelt Island, Midtown, Central Park South,
Midtown South, Midtown East and Midtown
West.
vi The South Brooklyn submarket includes Sunset
Park, Bay Ridge, Dyker Heights, Bensonhurst, Bath Beach, Gravesend,
Borough Park, Kensington, Coney Island, Brighton Beach, Ditmas
Park, Seagate, Flatbush, Midwood, Sheepshead Bay, Manhattan Beach,
East Flatbush, Canarsie, Flatlands, Marine
Park, Bergen Beach, Old Mill Basin, Greenwood and Gerritsen
Beach.
vii The Northwest Queens submarket includes
Astoria, Long Island City, Sunnyside and Ditmars-Steinway.
viii The Northeast Queens submarket includes
Flushing, Whitestone, College
Point, Fresh Meadows,
Kew Gardens Hills, Kew Gardens, Bayside, Douglaston, Little
Neck, Auburndale, Glen
Oaks, Floral Park,
Bellerose, Briarwood, New Hyde
Park, Oakland Gardens,
Hillcrest, Pomonok, Utopia, Bowne
Park, Clearview, Alley Park and Queensboro Hill.
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SOURCE StreetEasy