Manhattan Rental Market Report

Updated: April 2008

Download in PDF for a more readable, printer-friendly option

Table of Contents:

• Letter From Our Chief Operating Officer
• A Quick Look
• Mean Citywide Rental Prices
• Citywide Price Trends
• Neighborhood Price Trends
  • Upper West Side
  • Upper East Side
  • Midtown West
  • Midtown East
  • Murray Hill
  • Chelsea
  • Gramercy Park
  • Greenwich Village
  • East Village
  • SoHo
  • Lower East Side
  • TriBeCa
  • Financial District
  • Battery Park City
  • Harlem
• The Report Explained

---

Letter From Our Chief Operating Officer

On behalf of The Real Estate Group, I am pleased to present the April 2008 edition of our Manhattan Rental Market Report, the only research on the city’s rental rates published on a monthly basis.

Compared to April of last year, citywide rents are up across the board this month—a good sign for Manhattan real estate. Nationwide housing crisis notwithstanding, the city’s 2008 market seems to be following its typical seasonal patterns: Prices weakened in the winter months and, with the arrival of April and spring, have slowly begun their “peak season” ascent. As graduation and new hire season approaches, rents have already inched upward in many neighborhoods, particularly in those known for attracting young professionals and recent grads (such as Murray Hill, the East Village and the Upper East Side). Though in ’08 we may not see prices grow at past summers’ explosive rates, the fact that rents are rising as early as April seems to indicate that landlords are seeing demand pick up and feeling relatively optimistic about the market’s health in the upcoming months.

Going forward, we expect the market to continue to gain strength in May and throughout the summer—though perhaps at a more moderate pace. In Manhattan, we’ve grown accustomed to rapid acceleration in our real estate market, and any slowdown in growth may seem ominous. However, we believe that the boom of recent years was an exception to the norm, and that the kinds of corrections we’re noticing now are probably inevitable. That said, if we do see price breaks and more inventory on the market this summer, it may do more good than harm in such a ceaselessly expensive city whose May-to-August housing market is usually so stressful to navigate.

Sincerely,

Daniel Baum, C.O.O.
The Real Estate Group

A Quick Look

Non-Doorman Buildings (Average Prices)
	Most Expensive	Least Expensive
Studios	TriBeCa $2,754	Harlem $1,264
One-Bedrooms	TriBeCa $4,428	Harlem $1,707
Two-Bedrooms	TriBeCa $7,342	Harlem $2,212

Doorman Buildings (Average Prices)
	Most Expensive	Least Expensive
Studios	TriBeCa $2,830	Harlem $1,326
One-Bedrooms	SoHo $4,365	Harlem $1,772
Two-Bedrooms	SoHo $6,789	Harlem $2,627

Greatest changes since March:

• Doorman studios – Midtown East – Down 5.2% ($134)
• Doorman one-bedrooms – Lower East Side – Up 7.2% ($258)
• Doorman two-bedrooms – Lower East Side – Up 7.6% ($320)

• Non-doorman studios – Upper West Side – Up 6.9% ($122)
• Non-doorman one-bedrooms – Financial District – Down 7.3% ($229)
• Non-doorman two-bedrooms – Greenwich Village – Up 8.1% ($284)

Notable Trends:

The upcoming “peak” rental season looks promising as most citywide rents modestly increase from last month and all citywide prices bypass those from this time last year—Comparing our April ’08 citywide data to numbers from April ’07 (removing Harlem from the current month’s averages as it wasn’t included in last year’s data), it appears that rents have increased despite ambiguity in the city’s housing and financial markets. Year-over-year rents trended upward most significantly in the one-bedroom bracket, where prices moved up about 4% across both the non-doorman and doorman categories. Additionally, this month’s citywide averages for one- and two-bedrooms units were slightly higher than last month’s (as much as 1.4% in the doorman one-bedroom and non-doorman two-bedroom categories).

All-around April growth is a healthy sign for the Manhattan rental market, indicating that the historically “busy” season of May through August should prove to be just that. On the other hand, prices may not jump quite as drastically in the warmer months of ’08 as they have in previous years—possibly a much-needed correction in a city where housing demand is high, inventory is low, and apartments are expensive throughout the summer.

Non-Doorman Citywide Rents: April ’07 vs. April ’08
	April ’07	April ’08	Change
Studios	$2,049	$2,096	+2.3%
One-Bedrooms	$2,771	$2,884	+4.1%
Two-Bedrooms	$3,906	$4,044	+3.5%

Doorman Citywide Rents: April ’07 vs. April ’08
	April ’07	April ’08	Change
Studios	$2,574	$2,655	+3.1%
One-Bedrooms	$3,615	$3,761	+4.0%
Two-Bedrooms	$5,475	$5,525	+0.9%

Murray Hill rents increase across the board as a new crop of recent grads and young professionals begin searching for homes—As the hectic rental season approaches, more young professionals and recent grads have begun looking for homes (subsequently causing overall rent increases) in Murray Hill, traditionally a neighborhood of choice for this demographic. Not surprisingly (based on the area’s abundance of 20- and 30-something residents living in shares), the most pronounced increases showed up in the two-bedroom category: Non-doorman rents rose 6.9% and doorman prices went up 3.7%.

Lower East Side doorman one- and two-bedroom rents climb again as more vacant luxury units are filled—As the Lower East Side continues to gain clout as a luxury residential neighborhood with a distinctly downtown vibe, more renters have scooped up available spaces in the area’s new high-end developments. Consequently, all one- and two-bedroom rents rose, by as much as 7.2% and 7.6% respectively, in the doorman category. Expect fewer luxury vacancies and a general increase in demand for housing to continue nudging doorman (and likely all) prices on the LES upward through the summer.

Demand for non-doorman two-bedroom Chelsea and Gramercy Park apartments continues to slide—Non-doorman two-bedroom rents in Chelsea have fallen 13.4% since February to reach their lowest point since last May. Gramercy Park apartments of the same size and service level saw price cuts of 12.5% compared to two months ago. It seems that consistently high prices throughout ’07 may be causing eclectic Chelsea and its tranquil neighbor to lose renters looking for more space and fewer frills to more affordable neighborhoods.

Where Prices Decreased:

Harlem—All Harlem studio and two-bedroom rents fell this month.

Midtown West—All studio prices decreased (by 5.4% for non-doorman units and 0.2% for doorman units), as did rents for non-doorman two-bedrooms (by 1%).

Midtown East—Studio and one-bedroom prices dipped across the board, by as much as 5.2% in the non-doorman studio category.

Chelsea—Two-bedroom prices dropped by a significant 7.5% for non-doorman units and 1.8% for doorman units.

Gramercy Park—All studio and two-bedroom rents slid in April. Non-doorman studio prices decreased by 4.3%, non-doorman two-bedrooms by 6.4% and doorman two-bedrooms by 3.7%.

East Village—East Village studio rents fell by 2.9% for non-doorman apartments and 3% for doorman units.

Lower East Side—LES studio prices softened in both the non-doorman and doorman categories (by 2.1% and 3.7%, respectively).

Financial District—Non-doorman studios and one-bedrooms and doorman two-bedrooms saw price cuts this month in FiDi, with rents declining by 7.3% for non-doorman one-bedrooms and 3.8% for nondoorman studios.

Where Prices Increased:

Upper West Side—Rents across both service categories of UWS studios increased (by almost 7% for non-doorman units); additionally, non-doorman two-bedroom prices received a 4.5% boost.

Upper East Side—All average two-bedroom rents climbed, most notably by 6.3% in the non-doorman category.

Midtown West—All one-bedroom prices increased (by 4.1% for non-doorman units and 0.5% for doorman units).

Midtown East—Non-doorman and doorman two-bedroom rents headed upward this month, by 5.6% in the non-doorman category and 1.6% in the doorman category.

Murray Hill—Rents for every apartment size and service level increased in April. Two-bedroom prices jumped most significantly (by 6.9% for non-doorman and 3.7% for doorman).

Greenwich Village—All one- and two-bedroom rents increased, by as much as 8.1% for non-doorman two-bedrooms, 4.9% for doorman two-bedrooms and 4.6% for non-doorman one-bedrooms.

East Village—East Village one- and two-bedroom prices in both service categories increased.

SoHo—All categories of doorman rents and non-doorman prices in the one- and two-bedroom categories went up this month (by as much as 6.7% and 7.6% for doorman one- and two-bedrooms).

Lower East Side—Average LES doorman one- and two-bedroom prices climbed 7.2% and 7.6%, respectively. Non-doorman two-bedroom prices also rose by 4.4%.

Financial District—Doorman studios and one-bedroom rents increased by 4.9% and 4%, respectively.

Battery Park City—All doorman rents trended upward, by as much as 4.9% for two-bedroom units.

Tips for Renters:

• April could be your last chance for a good deal in any area of Manhattan. We can’t stress this enough: If you can move before the rush hits in May, it’s very possible that you could wind up writing rent checks for several hundred dollars less each month. Even if financial fears prevent the summer rental market from exploding the way it has in past years, we can almost guarantee that demand and prices will be higher at this time than at any other period of 2008. Keep ahead of the curve and save!
• Recent grads and new hires planning to ditch their college roommates and move to the city on their own should probably start searching on the Lower or Upper East Sides, Harlem or Midtown West. Non-doorman studios in these neighborhoods remain the most affordable in the city and generally offer a decent amount of space for the money in communities heavily populated by younger renters just starting out.
• If you’re on the hunt for a modern one-bedroom apartment in a neighborhood with a big-city feel, you may find what you’re looking for in the Financial District. This month, rents for non-doorman one-bedroom units dropped by 7.3% in FiDi, and bargains down here are sure to dwindle soon as the area increasingly amps up its residential appeal with luxury developments and designer retail stores.

Mean Rental Prices Throughout Manhattan

The Mean Rental Price graphs illustrate average monthly rents for studios, one-bedrooms and two-bedrooms in doorman and non-doorman buildings in Manhattan for the month of March 2008. Graphs tracking citywide and neighborhood price changes over a rolling 12-month period follow.

Manhattan Rental Price Trends

*2008 data includes Harlem

Neighborhood Price Trends

Upper West Side

Upper East Side

Midtown West

Midtown East

Murray Hill

Chelsea

Gramercy Park

Greenwich Village

East Village

SoHo

Lower East Side

TriBeCa

Financial District

Battery Park City

Harlem

As Harlem’s data is new to this report, these graphs only show Harlem rents in 2008 so far.

The Report Explained

The Manhattan Rental Market Report is the only report that compares fluctuation in the city’s rental data on a monthly basis. It is an essential tool for potential renters seeking transparency in the NYC apartment market and a benchmark for landlords to efficiently and fairly adjust individual property rents in Manhattan.

The Manhattan Rental Market Report is based on data cross-sectioned from over 10,000 currently available listings located below 155th Street and priced under $10,000, with ultra-luxury property omitted to obtain a true monthly rental average. Our data is aggregated from the TREGNY proprietary database and sampled from a specific mid-month point to record current rental rates offered by landlords during that particular month. It is then combined with information from the REBNY Real Estate Listings Source (RLS), Online Residential (OLR.com) and R.O.L.E.X. (Real Plus).

Contact us now: 212.475.9000

Note: The data within this report is collected and compiled by The Real Estate Group’s marketing department and is overseen by C.O.O. Daniel Baum.All materials presented here are intended for informational purposes only and have been compiled from sources deemed reliable. Though the information is believed to be correct, it may be subject to errors, omissions, changes or withdrawal without notice. To achieve optimum results, the aforementioned data should be used in combination with the experience of a real estate professional.If you would like to republish this report on the web, please make sure to source it as the Manhattan Rental Market Report with a link back to its original location.