The average rental price in Manhattan fell to $3,989 per month in March, a 1.1 percent drop from the month prior and a two-year low for the borough, says Douglas Elliman’s March 2016 rental report, prepared by Miller Samuel, Inc.
The average rent in Manhattan represents a 3.3 percent fall from March 2015, when price was $4,126 on average.
Before March, Manhattan rents were on a twenty-four month upward drift.
From an annual standpoint, median rent prices sloped downward for the first time since March 2014 — down 2.8 percent from March 2015 ($3,395), hitting $3,300 per month. Median month-over-month rent prices also fell, from $3,382 in February – a 2.4 percent negative shift.
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Listing inventory in Manhattan rose 20.9 percent from last year, up to 6,186 units on the market from 5,117 last March. Last month represented a 0.6 percent rise in listing inventory from February, when there were 6,151 units on the market.
The number of new leases dropped month-over-month but could be a sign of seasonality due to the high turnover rate in the Spring. From February to March, Manhattan saw a 23.9 percent drop in new leases, from 5,043 to 3,837.
On a yearly basis, the drop in new leases wasn’t as staggering, at just 1.6 percent — down from 3,899 new leases last year. Miller Samuel stated that new lease slips were likely due to more renewals from weaker price trends.
Median price dropped 3.5 percent in the luxury tier, from $8,530 in March 2015 to $8,228 last month, with the entry price point (first 30 percent) falling 2.2. percent year-over-year.
Queens prices drop, but inventory booming
Manhattan wasn’t the only borough to suffer blows to average rental rates. Queens, too, softened in average pricing, with a 3 percent month-over-month decrease and a 2.1 percent year-over-year drop.
Average rent in Queens stood at $2,927 per month this March, as compared to $3,019 in February 2016 and $2,989 in March 2015.
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Northwest Queens new development held 25.5 percent of all activity. Listing inventory grew 42.1 percent to 439 units over the last year, further solidifying Queens’ place as an up-and-coming locale for renters who can’t afford Brooklyn and Manhattan but prefer urban accommodations and lifestyles.
Are Brooklyn rates still intensifying?
Brooklyn’s average rent prices were the only to rise in March both monthly and annually. The average rent price stood at $3,065 in March, a 0.6 percent rise from the month prior ($3,047) and a 0.2 percent rise from March 2015, when the average price stood at $3,059 per month.
From a median price point focus, Brooklyn dipped marginally on a monthly scale, from $2,787 in February to $2,775 in March. However, looking at Brooklyn’s median on an annual scope, prices rose 2.7 percent from $2,703 last March.
