Soft Rental Market Continues into 2017

Posted by:

Good news for renters — particularly those in the market for NYC’s luxury apartments. The average rent throughout Manhattan and Brooklyn dipped in January while concessions like free rent and comped building amenity fees reached new highs. According to Douglas Elliman report, the use of concessions hit an all-time high for the fourth consecutive month, with more than 30 percent of leases including a concession now.
In Manhattan, the median rent has been on the decline for six consecutive months, year over year. Including the cost of concessions, Elliman’s report indicates that the median rent comes in at $3,259 for January. Without concessions, the median rent is at $3,369.
Brooklyn is also showing similar signs — new record high of landlord concessions and falling median rent in the borough, with January marking the sixth time in seven months that median rents have declined. Compared to January 2016, median rents dropped two percent to $2,750. With concessions, the median rent hovers at $2,702 which is almost three percent lower than this time last year.
But not all looks soft in the rental market: the demand for less pricey and smaller apartments remains strong with average rent for studios and one-bedrooms either stagnant or rising.