August 2014 Facts
- In August 2014, the average monthly rental price for a Manhattan studio was $2,112. For one-bedroom homes, the average was $2,887. For two-bedrooms, the average rent was $3,957. Finally, the average three-bedroom apartment rented for $5,256.
- Rents increased 2.0% for studio and one-bedroom homes, and 0.9% for two-bedroom units from August 2013 to August 2014. In contrast, rents for three-bedroom apartments decreased by 1.8% during the same period.
- As usual, the most expensive neighborhood for renters in August was SoHo/TriBeCa, with a median rent of $5,100. The Financial District/Battery Park City was the second priciest area, with a median rent of $3,700.
- The least expensive area for renters in Manhattan during August 2014 was Washington Heights, with a median rent of $1,900. When examining neighborhoods below 96th Street, the Upper East Side’s median rent of $2,400 was the lowest of all areas in this section of the borough.
- With a vacancy rate of 1.04%, Gramercy was the neighborhood with least inventory in August 2014, followed by Midtown West at 1.08%. On the other end of the spectrum, the vacancy rate was highest in the East Village. Last month, 2.08% of homes in the neighborhood were vacant. The West Village also saw its vacancy rate rise to 1.58% in August, making it the area with second-highest percentage of available homes.
- When comparing the borough’s vacancy rate year-over-year, there was still less inventory on the market in August 2014 than there was last August, despite the recent vacancy rate increases. In August 2013, the Manhattan vacancy rate was 1.31%, slightly higher than July 2014’s rate of 1.27%.
New York, NY (September 11, 2014) – Leading Manhattan real estate brokerage Citi Habitats released its monthly rental market analysis for August 2014 today. While Manhattan rents are still slightly higher overall than they were a year ago, the data showed that the borough’s rental market continues to soften, with falling rents for most apartment categories and an increasing vacancy rate. During August, the East and West Villages topped the list of neighborhoods with available inventory. This is surprising, as these areas are typically in high-demand with apartment seekers.
The report found that when compared to July, average rents declined 3% for studio apartments. Rents for one-bedroom homes remained flat, while rents for two-bedroom homes fell by 2% on average. In contrast, average rents for three-bedroom units increased by 1%.
In August 2014, the borough-wide vacancy rose slightly to 1.27% from July’s rate of 1.25%. This is highest vacancy rate we have seen since April, when the rate was 1.36%. In addition, August marks two consecutive months of vacancy rate increases, which is relatively unusual for the summer season.
When examining incentives, 6% 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 August, unchanged from July.
“Tenants have been feeling the sting of high rents and are beginning to fight back,” commented Gary Malin, President of Citi Habitats. “During spring, landlords became aggressive with pricing, especially in the hot downtown neighborhoods. As an example, rents in the East and West Villages have reached a level that some tenants in these areas are seeking better values elsewhere – maybe even across the river. Many sections of Brooklyn and Queens are becoming viable options for people who would not have considered the outer boroughs in the past. Manhattan’s simply not the only game in town anymore.”
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