- When compared to October 2014, average rents in November declined 3% for both studio and three-bedroom units. Rents for one-bedrooms fell 2%, while two-bedroom homes decreased in price by 1% on average.
- In November 2014, the average monthly rental price for a Manhattan studio was $2.062. For one-bedroom homes, the average was $2,814. For two-bedrooms, the average rent was $3,907. Finally, the average three-bedroom apartment rented for $5,098.
- In November 2014, the borough-wide vacancy rose to 1.73% from October’s rate of 1.62%, and marked the highest vacancy rate seen in 2014 so far. The last time the vacancy rate was this high was nearly a year ago, when the rate hit 1.82% – in December of 2013.
The only Manhattan neighborhoods that experienced vacancy rate declines from October to November were Midtown East (from 2.03% to 1.90%) and The Upper East Side (from 1.31% to 1.24%) this was caused, in part, by price-sensitive apartment seekers choosing new homes in these relatively affordable neighborhoods. When examining incentives, 11% of rental transactions brokered by Citi Habitats offered a free month’s rent and/or payment of the broker fee to entice new tenants in November, up from 7% in October.
- With a vacancy rate of 1.20%, SoHo/TriBeCa was the area with least inventory in November 2014, followed by The Upper East Side at 1.24%. On the other end of the spectrum, the vacancy rate was highest in the East Village. Last month, 2.69% of rental units in the neighborhood were vacant. The Upper West Side was the area with second-highest percentage of available homes, with a vacancy rate of 2.04%.
When examining incentives, 11% of rental transactions brokered by Citi Habitats offered a free month’s rent and/or payment of the broker fee to entice new tenants in November, up from 7% in October.
New York, NY (December 11, 2014) – Leading Manhattan real estate brokerage Citi Habitats released its monthly rental market analysis for November 2014 today. The report found that all metrics used to examine the state of the city’s rental market continued their shift to the tenants’ favor. In November, Manhattan rents fell slightly across all apartment categories, the vacancy rate continued to climb, and landlords increased their use of move-in incentives
“The recent rent declines and climbing vacancy rate are to be expected this time of year,” commented Gary Malin, President of Citi Habitats. “No one is moving during the holiday season unless they have to. As a result, this trend will likely continue next month, but we expect 2015 to start off strong due to this pent-up demand. However, what’s interesting is that vacancies have risen consistently for five months. The rate began to tick up back in July, which is typically a month of strong demand. This implies that rents have likely been pushed about as far as they can go. As a result of the high cost of rental housing in Manhattan, increasing numbers of apartment seekers are finding good value and a great lifestyle in a variety of outer-borough neighborhoods.”
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