Manhattan Rents Grow Faster Than Sales

The fall season yielded little relief for renters in Manhattan, where rent growth outpaced resale price growth in November, according to data from StreetEasy.

In Manhattan, median monthly rent grew 1.9 percent year-over-year to $3,245, as measured by the StreetEasy Rent Indices. Median rent in the Upper Manhattan neighborhoods remained the least expensive in the borough, but increased the most of any submarket in Manhattan and Brooklyn, rising 6.4 percent year-over-year to $2,449. Rents grew the least in the Upper East Side submarket, up 0.4 percent year-over-year to $2,714.

Nearly 43 percent of rental units in Manhattan received a discount in November. Renters shopping in Upper Manhattan neighborhoods, such as Harlem, Washington Heights and Inwood, were the least likely to see units discounted – less than a third of rental inventory in the area was discounted in November (29.9 percent). This was the lowest share of rental discounts among Manhattan submarkets. The Downtown submarket had the most discounts at a share of 47.3 percent, followed by the Upper West Side submarket (47.2 percent).

In Brooklyn, median rent increased 0.9 percent year-over-year to $2,870, the slowest pace of rent growth sinceNovember 2010. Rents in the South Brooklyn submarket remained the least expensive in the borough, but rose 4.3 percent to $1,709. Those seeking rentals in North Brooklyn received a little relief, with rents declining 1.9 percent to $3,079. The median rent in North Brooklyn, which is comprised of Williamsburg, East Williamsburg and Greenpoint, remained the most expensive in Brooklyn, but was the only submarket in either borough where rents declined.

Fewer rentals received discounts in Brooklyn than Manhattan, with 41.7 percent of Brooklyn rental inventory discounted in November. Nearly half of all rental listings in North Brooklyn (48 percent) were discounted last month, followed by Northwest Brooklyn (46 percent). South Brooklyn had the smallest share of rental inventory discounted (30.8 percent).

The sales market cooled in November, with the Manhattan median resale price rising only 0.5 percent year-over-year to $979,791 – about a quarter of the rate of rent growth. This was the slowest pace of price growth since January 2011. Resale prices in Upper Manhattan remained the fastest-growing among submarkets in the borough, up 5.9 percent year-over-year. Midtown resale prices increased 1.1 percent, while the Upper West Side submarket remained flat year-over-year and resale prices in both Downtown and Upper East Side declined 0.6 percent.

In Brooklyn, median resale price rose 3.6 percent year-over-year to $562,663, the slowest pace of price growth since September 2012. Resale prices in the Prospect Park submarket jumped 15.9 percent year-over-year to$881,672, surpassing North Brooklyn as the most expensive submarket in the borough.

“Heading into winter, the rental market typically slows down and landlords are eager to fill vacancies, presenting renters with potential opportunities to negotiate,” said StreetEasy economist Krishna Rao. “This year, Upper Manhattan is bucking that trend. If you are shopping for a rental apartment in that area, don’t expect competition to ease up much this winter. Come prepared with checkbook in hand.”

The complete StreetEasy Market Reports for Manhattan and Brooklyn with additional analysis, neighborhood data and graphics can be viewed at streeteasy.com/blog/market-reports.

Region

 November 2016

StreetEasy Price

 Index

Annual

Change

November 2016

StreetEasy Rent

Index

Annual

Change

Manhattan

$979,791

0.5%

$3,245

1.9%

Downtown

$1,212,793

-0.6%

$3,652

2.3%

Midtown

$853,301

1.1%

$3,379

2.2%

Upper West

Side

$1,056,424

0.0%

$3,129

1.2%

Upper East Side

$978,725

-0.6%

$2,714

0.4%

Upper

Manhattan

$633,144

5.9%

$2,449

6.4%

Brooklyn

$562,663

3.6%

$2,870

0.9%

North Brooklyn

$859,236

-2.8%

$3,079

-1.9%

Northwest

Brooklyn

$846,686

3.7%

$3,058

1.2%

Prospect Park

$881,672

15.9%

$2,838

2.0%

South Brooklyn

$422,259

5.3%

$1,709

4.3%

East Brooklyn

$474,388

0.5%

$2,484

3.6%