New yr, identical rental market.
That was the story for January rents within the metropolis, the place median lease for a brokered, market-rate lease in Manhattan was $4,695, the third-highest quantity on report, based on Miller Samuel’s month-to-month rental report for Douglas Elliman.
The median lease was up 8 % from final yr, and down simply barely from December’s numbers.
“We’re simply on this mode of steadily rising rents and till we see extra of a drop in mortgage charges,” stated report writer Jonathan Miller. “I believe that pattern goes to be sustained for some time.”
The luxurious rental market continued to outpace the remainder of the market by way of worth development, considerably mirroring the gross sales market within the metropolis as rich renters or consumers proceed to have the ability to afford greater and better costs.
Median luxurious rents — outlined as rents within the high 10 % of the market — rose over 14 % yearly to $11,500, persevering with a pattern that continued by way of a lot of the back-half of final yr. Brokers have previously cited an absence of high-end rentable stock as one of many causes rents have began to routinely push $100 or $200 per foot in that market.
Emptiness fee fell to 2.44 %, effectively under the 10-year common in January, whereas stock fell over 9 % from final yr. Whereas a number of the stock disappearing could also be a results of landlords pulling their listings off public markets after the passage of the FARE Act in June, the falling emptiness fee signifies that greater than something, “the market’s nonetheless tight,” stated Miller.
In Brooklyn, median lease was $3,814, up 9 % from a yr in the past, whereas new leases signed and leasing stock had been down considerably in comparison with final yr.
In northwest Queens, together with the neighborhoods of Astoria, Sunnyside, Woodside and Lengthy Island Metropolis, median lease was up over 10 % yearly to $3,754 monthly.
Miller has been carefully watching the Federal Reserve’s decision-making on fee cuts, which may trickle right down to decrease mortgage charges. Decrease mortgage charges imply extra homebuyers and certain fewer renters. However after a surprisingly strong jobs report from the Bureau of Labor Statistics got here out on Wednesday, the chances of aid simply grew slimmer, based on Miller.
“The potential of mortgage charges sliding appears an increasing number of distant,” he stated. “Employment popped this month greater than anticipated, which makes it fairly exhausting to chop charges.”
Learn extra
Manhattan rents reach second-highest on record
Manhattan rents sit pretty as upward pressures continue
Apartment at Naftali’s 1045 Madison rents for $95K
