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When looking at the most recent data for September, we found that rents climbed month-over-month in Manhattan, while they declined in Brooklyn. Meanwhile, the Manhattan vacancy rate rose to the highest level in 5 months.
- Month-over-month, Manhattan’s vacancy rate climbed from 1.29% in August – to 1.36% in September. In fact, there were more available apartments on the market in September than at any time since April, when the rate reached 1.44%.
- Apartment seekers remain extremely price-sensitive, so this increase in available units is likely a reaction – at least in part – to ascending rents.
The use of move-in incentives ticked downward.
- The percentage of leases that included a move-in incentive was 27% in September 2018, down slightly from 28% in August. Year-over-year, their prevalence is also down – as they were found on 37% of leases in September 2017.
- Despite the declines, they continue to be a significant marketing tool – especially in luxury rental developments.
Quarterly trends continue to reflect an improved market for landlords in the longer term.
- Rents in Manhattan and Brooklyn climbed across the board, both quarter-over-quarter and year-over-year.
- The Manhattan vacancy rate rose slightly to 1.35% during Q3 – from 1.34% in Q2. Despite the recent uptick, there are still fewer available choices for tenants than last year.
- During Q3 as a whole, 27% of tenants received a landlord inventive, up from 24% last quarter. On the other hand, their use is down compared to Q3 2017 – when 37% of new leases included a concession.
“Our September results show that even small increases in asking rents have an impact on demand – and tenants comparison-shop between buildings and neighborhoods like never before. The rise of car and bike sharing services, as well as the expanded ferry system, has caused many New Yorkers to consider more affordable areas that were once off the beaten path. In the rental market, the old adage of ‘location, location, location’ – has been replaced with ‘price, price, price.’”
- Gary Malin, President of Citi Habitats
