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MANHATTAN LANDLORDS ARE BACK IN THE DRIVER’S SEAT
Rents rise across the borough, as the vacancy rate falls and concessions begin to dry up.
New York, NY (May 15, 2014) – Leading Manhattan real estate brokerage Citi Habitats released its monthly rental market report for April 2014 today. The results show that the borough’s vacancy rate declined, along with the percentage of transactions that included a move-in incentive. In addition, average rents increased for most apartment categories. All these factors are positive signs for landlords.
The report found that average rents increased slightly for all apartment categories except two bedroom homes. Month-over-month, rents increased the most for studio units. Rents in this category increased an average of 4%, borough-wide. Rents for one bedroom apartments increased a negligible amount, while three bedroom homes increased in price by an average of 1%. In contrast, average rents for two bedroom apartments decreased by 1%.
The average Manhattan apartment rented for $3,420 during April 2014, $18 more than it did in March 2014, when the average was $3,402. Looking year-over-year, average rents are also up. The average apartment rented for $3,367 during April 2013, $53 less than it did last month.
In April 2014, the borough-wide vacancy rate fell to 1.36% from March’s rate of 1.46%. The last time the Manhattan vacancy rate was this low was in August 2013, when the rate was 1.31%. April marks the fourth consecutive month of falling vacancy rates.
While relatively prevalent during the winter months, landlords’ use of move-in incentives has begun to decline. In April, 9% of rental transactions brokered by Citi Habitats offered a free month’s rent and/or payment of the broker fee to entice new tenants, down from 12% in March.
“In general, the Manhattan rental market is continuing to tighten across the board,” commented Gary Malin, President of Citi Habitats. “After a harsh winter, tenants are back in the marketplace and looking to transact. While rents remain stable, landlords have been able to inch pricing upwards, most notably for studio units – which represent a substantial segment of inventory.”
Additional relevant findings of the Citi Habitats April 2014 monthly rental report are outlined below:
- In April 2014, the average monthly rental price for a Manhattan studio was $2,097. For one bedroom homes, the average was $2,779. For two bedrooms, the average rent was $4,042. Finally, the average three bedroom apartment rented for $5,177.
- As usual, the most expensive neighborhood for renters in April 2014 was SoHo/TriBeCa, with a median rent of $4,200. Gramercy/Flatiron was the second priciest area, with a median rent of $3,550.
- The least expensive area for renters in Manhattan during April 2014 was Washington Heights, with a median rent of $1,625. When examining neighborhoods below 96th Street, the Upper East Side’s median rent of $2,300 was the lowest of all areas in this section of the borough.
- With a rate of 0.93%, SoHo/TriBeCa also was the only Manhattan neighborhood to have a sub-one percent vacancy rate in April 2014. On the other end of the spectrum, the East Village was the only area where the rate topped 2%. Last month, 2.02% of homes in the neighborhood were vacant.
- Manhattan offers rental housing to suit a wide range of budgets, and the type of building a tenant chooses has a huge impact on their monthly rent. The average one bedroom apartment in a new construction doorman building rented for $4,120 in April. In contrast, the average one bedroom in a walk-up rented for $2,890 during the same period.
The full report may be accessed here