September 2014 Facts:
- Rents remained stable across the board. Average pricing for studios increased slightly, but rents from one, two and three bedroom units all declined.
- The Manhattan vacancy rate increased – from 1.27% in August, to 1.42% in September. However, the borough’s vacancy rate is down year-over-year. In September 2013, the rate was 1.48%.
- During September 2014, 6% of leases signed included a landlord concession, unchanged from the month prior.
Q3 2014 Facts:
- The borough’s rental market was in a state of flux during this most recent quarter. Some aspects of the market favored landlords, while others were more advantageous to tenants.
- While rents have been on the decline during the 3rd quarter, they are still higher when compared to quarter that preceded it. Quarter-over-quarter, average rents for one-bedroom apartments increased the most, by 3.5%. Rents for studios rose 1.7% on average, and two- and three-bedroom units both increased in price by an average of approximately 1%.
- When examining vacancy rates, we found 1.35% of apartments to be vacant during Q3 2014, up from 1.25% during Q2.
- During Q3 2014, 6% of transactions brokered by Citi Habitats included an owner-paid incentive, down slightly from 7% during Q2.** Generally, during the third quarter, we saw incentives used in newly constructed properties where the concession was part of the overall marketing plan, or in more expensive apartments where the owner wanted to drive traffic to the unit without lowering the asking rent.
** Typically these concessions take the form of one month of free rent or payment of the broker’s fee.
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