Contact me here to discuss any upcoming vacancies and/or pricing of your apartments.
When looking at the most recent data for June, we found a ‘mixed bag’ of market conditions.
· In total, rents crept up in Manhattan and Brooklyn – both month-over-month and year-over-year, which is good news for landlords.
· After falling for six consecutive months, the vacancy rate rose slightly – from 1.27% in May to 1.32% in June. Apartment seekers remain price-sensitive, so this increase in available units may be a reaction to ascending rents.
The use of move-in incentives was back on the upswing in June, after falling in May.
· The percentage of leases that included a move-in incentive climbed to 27% in June 2018, from 19% in May.
· While concession use is down considerably from the winter months – they were found on a full 51% new leases in November 2017 for example – they continue to be a significant marketing tool in both new developments and existing properties alike.
However, quarterly trends illustrate an improved market for landlords in the longer term.
· Manhattan rents remained relatively stable during the second quarter compared to both Q1 2018 and year-over-year. However, rents in Brooklyn were up across all categories when comparing both periods.
· The Manhattan vacancy rate fell to 1.34% during Q2 – from 1.77% in Q1. It’s also lower than Q2 2017’s rate of 1.78%. This means fewer available apartment choices for potential tenants.
“In June, landlords were bullish on the summer season due to a streak of six consecutive months of increased market demand. Students, both international and domestic, as well as would-be buyers playing wait-and-see regarding their home purchase, have been among the key drivers of this rise in traffic. Sensing conditions were in their favor, some owners raised rents – while boosting the incentives offered. However, it’s a delicate balancing act – as apartment seekers remain highly price-sensitive. We suspect this uptick in asking rents caused the vacancy rate to climb – for the first time since November of last year.”
Tagged: Central Park West Apartment, manhattan apartment, manhattan co-op, Manhattan condo, manhattan coop, Manhattan Real estate, manhattan real estate agent, manhattan real estate broker, New York city apartment, New York City Real estate, new york city real estate agent, upper west side apartment