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- When looking at the most recent data for December, we found that month-over-month, rents fell by small amounts for all apartment sizes in Manhattan, while they declined for all categories absent two-bedrooms in Brooklyn.
- Overall, rents continue to trend downwards, but are still higher than they were at this time last year.
- Month-over-month, Manhattan’s vacancy rate climbed from 1.55% in November, to 1.60% in December. In fact, there were more apartments on the market in December than at any time since March, when the rate reached 1.63%. The rise in vacancy is due – in part – to continued price-sensitivity by apartment seekers. In addition, there is typically reduced demand for rental housing during December due to the holiday season.
- However, Manhattan’s vacancy rate is lower this December when compared to last. In December 2017, 2.09% of apartments were vacant.
- In December 2018, 29% of new leases included a move-in incentive – down from 34% in November. Year-over-year, their prevalence has also diminished – as they were found on 41% of leases in December 2017.
- Despite these declines, they continue to be a popular marketing tool, especially in luxury rental developments.
“In December, many property owners in both Manhattan and Brooklyn lowered rents slightly – in an attempt to spur activity during the traditionally slow holiday season. Despite these adjustments, the vacancy rate continued to climb; illustrating the ongoing disconnect between the rents that landlords want to achieve and the pricing tenants are willing to pay. However, there are great values in today’s market for apartment seekers – if they are willing to explore new neighborhoods and building types. Now more than ever, it pays to keep an open mind.”
– Gary Malin, President of Citi Habitats
Click the image above to download a PDF of the December & Q4 report.