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- The report found that the market was a “mixed bag” during the month, which is relatively unusual for this time of year. Typically, conditions are firmly in the landlords’ favor during the summer months.
- In July 2015, the average monthly rental price for a Manhattan studio was $2,301. For one-bedroom homes, the average was $3,030. For two-bedrooms, the average rent was $4,069. Finally, the average three-bedroom apartment rented for $5,261.
- Average rents increased slightly from June for all apartment sizes, absent three-bedroom homes, where they declined by a marginal amount. Looking year-over-year, average rents were up across the board. Rents for studio apartments increased the most, by 6%. Pricing for one-bedrooms rose by an average of 5%. Rents for two- and three-bedroom homes also increased, but much more slightly. Average rents ticked up 1% for both categories.
- In July 2015, the borough-wide vacancy crept to 1.42% from June’s rate of 1.13%. Year-over-year, Manhattan’s vacancy rate also climbed. In July 2014 the borough’s vacancy rate was 1.25% (again, compared to 1.42% in July 2015).
- When examining incentives, 8% 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 July, down from 10% in June. Last month’s percentage is also higher than a year ago (July 2014) – when only 6% of new leases included an owner-paid concession.
“The Manhattan rental market seems to have reached its tipping point,” commented Gary Malin, President of Citi Habitats. “Landlords have continued to raise rents and cut back on their use of concessions, and tenants have begun to strike back – by postponing moves, staying put, or exploring housing alternatives in the outer boroughs.”
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