Manhattan residential landlords had a contented vacation as median rents rose to an all-time excessive for a December. Three-bedroom residences and bigger had the most important year-on-year beneficial properties.
The median Manhattan lease in December rose 16.5% from a 12 months earlier to $4,048. Although that was a document for December, there have been some indicators the market could also be easing in Manhattan, Queens and Brooklyn after regular beneficial properties by way of a lot of final 12 months, in keeping with a report by Miller Samuel Inc. and brokerage Douglas Elliman Actual Property.
In Manhattan, the median lease fell for 4 of the previous 5 months since reaching a document in July, whereas the emptiness fee rose for an eighth straight month. Demand for leases, nevertheless, is not prone to ease a lot whereas gross sales costs and financing prices stay excessive.
“The market remains to be strong on the rental aspect, particularly in Manhattan,” stated Hal D. Gavzie, government vice chairman for residential leasing at Douglas Elliman. “We’re seeing extra folks enter the rental market, with the excessive mortgage charges making it costlier to purchase.”
Key Takeaways
- Manhattan median house rents rose to an all-time excessive for December.
- Manhattan emptiness fee rose for eighth straight month.
- Brooklyn median lease was up 18% from a 12 months earlier and unchanged from November.
- Queens median lease fell under $3,000 for the primary time since Could.
In Brooklyn, median lease in December was $3,300, unchanged from November and up 18% from December 2021. New lease signings in Brooklyn fell for a 3rd straight month, whereas landlords provided probably the most concessions in 14 months — amounting to 1.4 months’ free lease.
The bargains for now are in Queens, the place the median lease in December fell under $3,000 for the primary time since Could, to $2,809, down 12% from November and 0.6% from a 12 months earlier, whereas the market share of landlord concessions rose to the best degree since Could.
“In Queens, you’re positively seeing landlords are a bit extra versatile with their rents,” Gavzie stated. “Quite a lot of these landlords are getting back from the height of the pandemic and they should get their residences leased. On the finish of the day, renters wish to benefit from the New York Metropolis nightlife and if they can not afford Manhattan, then elements of Queens and Brooklyn are the subsequent finest options.”
In Manhattan, median rents for three-bedroom residences and greater rose 20% 12 months on 12 months to $7,191, whereas one-bedrooms rose 18% to $4,000 and two-bedrooms rose 17% to $5,500.
In Brooklyn, two-bedrooms had the most important beneficial properties, rising 29% to $3,900. One-bedrooms rose 28% to $3,200 and three-bedrooms rose 18% to $4,000.
In Queens, three-bedroom residences rose 1.4% to $3,500 12 months on 12 months; studios fell 4.5% to $2,650 and two-bedrooms fell 4.1% to $3,600.