Manhattan Rental Market Report

Updated: December 2008

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

Table of Contents:

• Letter From Our Chief Operating Officer
• A Quick Look
• Mean Manhattan Rental Prices
• Manhattan 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 December 2008 edition of our Manhattan Rental Market Report, the only research on the city’s rental rates published on a monthly basis.

As expected, this month’s numbers keep in line with seasonal trends, showing declines in asking rents and increases in vacancies; however, the rent decreases in year-over-year comparisons illustrate that that this downward pressure reflects more than simply a sluggish fourth quarter. The Real Estate Group also continues to receive inquiries from landlords seeking guidance on appropriate pricing for their properties in the increasingly difficult housing market. The combination of these factors reinforces our sentiment that the market has turned in favor of the consumer.

That said, the concessions that we discussed in last month’s report, appear to have helped to fill some of the vacancies in the market as consumers use these incentives to upgrade, downgrade or generally use them to their advantage. Still, it seems as though concessions alone will not be enough to stabilize the rental market.

Going forward, the economic climate of Manhattan will continue to play a key role. The unemployment rate will be the single most influential factor in whether the year ahead will mark the return of the rental market to stability, or whether the downturn will be more prolonged and pronounced as some are predicting.

From all of us at The Real Estate Group, we wish you and your families a happy and healthy new year.

Sincerely,

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

A Quick Look

Non–doorman Buildings (Average Prices)
	Most Expensive	Least Expensive
Studios	TriBeCa $2,743	Harlem $1,262
one–bedrooms	TriBeCa $4,041	Harlem $1,682
two–bedroom	TriBeCa $6,594	Harlem $2,208

Doorman Buildings (Average Prices)
	Most Expensive	Least Expensive
Studios	TriBeCa $3,009	Harlem $1,297
one–bedrooms	SoHo $4,885	Harlem $1,803
two–bedroom	SoHo $6,769	Harlem $2,388

Greatest Changes Since November:

• Non–doorman studios – SoHo – Up 4.83% ($107)
• Non–doorman one–bedrooms – Harlem – Down 7.68% ($140)
• Non–doorman two–bedroom – Harlem – Down 6.99% ($166)

• Doorman studios – Upper East Side – Down 4.60% ($111)
• Doorman one–bedrooms – Lower East Side – Up 8.25% ($236)
• Doorman two–bedroom – Harlem – Down 4.44% ($111)

Year-over-year Changes*:

Non–doorman Citywide Rents: December ’07 vs. December ’08
	December ’07	December ’08	Change
Studios	$2,095	$2,052	-2.04%
one–bedrooms	$2,919	$2,728	-6.53%
two–bedroom	$3,949	$3,815	-3.39%

Doorman Citywide Rents: December ’07 vs. December ’08
	December ’07	December ’08	Change
Studios	$2,748	$2,495	-9.20%
one–bedrooms	$3,790	$3,574	-5.70%
two–bedroom	$5,520	$5,554	0.61%

*Year-over-year comparison does not include Harlem data

Notable Trends:

Rents roll on down— In both month–to–month and year–over–year comparisons, rents are down across the board. The most significant changes since November 2008 are in non–doorman one and two–bedroom units. Year–over–year comparisons show significant declines in all units, with the exception of doorman two–bedrooms.

Vacancies continue to increase across Manhattan— December marks the third straight month of increase in vacancies. Non–doorman and doorman combined vacancies are up 5% this month and 20% this quarter, with doorman vacancies continuing to outpace non–doorman units, increasing 5.7% this month and 23.6% this quarter.

A Renters’ Market is a Trade Up Market— With the price declines and aggressive incentives being offered, now may be the time to consider trading up. Some larger units are now approaching price points that are similar to what their cozier counterparts were being offered at during the height of the market. If you’ve been craving a little extra space for all your stuff, take a look around this month and see if now is the time to claim it.

Where Prices Decreased:

Harlem—Doorman studios (1.89%), non–doorman one–bedrooms (7.68%), doorman one–bedrooms (1.74%), non–doorman two–bedrooms (6.99%), doorman two–bedrooms (4.44%)

Upper West Side—Non–doorman studios (1.76%), doorman studios (2.76%), non–doorman one–bedrooms (4.68%), doorman one–bedrooms (4.53%), non–doorman two–bedrooms (5.53%)

Upper East Side—Doorman studios (4.60%), non–doorman one–bedrooms (1.05%), doorman one–bedrooms (0.78%), non–doorman two–bedrooms (6.23%), doorman two–bedrooms (2.33%)

Midtown West—Non–doorman studios (2.33%), doorman studios (1.96%), non–doorman one–bedrooms (1.68%), non–doorman two–bedrooms (3.47%), doorman two–bedrooms (0.04%)

Midtown East—Doorman studios (2.62%), non–doorman one–bedrooms (7.07%), doorman one–bedrooms (2.76%), doorman two–bedrooms (0.16%)

Murray Hill—Non–doorman studios (4.16%), doorman studios (2.17%), non–doorman one–bedrooms (2.04%), doorman one–bedrooms (3.98%), doorman two–bedrooms (2.26%)

Chelsea—Non–doorman studios (2.81%), non–doorman one–bedrooms (7.08%), doorman one–bedrooms (3.89%), non–doorman two–bedrooms (6.16%)

Gramercy Park—Non–doorman studios (4.19%), non–doorman one–bedrooms (6.72%), doorman one–bedrooms (0.39%), non–doorman two–bedrooms (4.51%)

Greenwich Village—Non–doorman studios (3.73%), non–doorman one–bedrooms (4.71%), doorman one–bedrooms (2.29%), non–doorman two–bedrooms (2.10%), doorman two–bedrooms (1.10%)

East Village—Non–doorman studios (1.40%), non–doorman one–bedrooms (4.10%), non–doorman two–bedrooms (5.42%), doorman two–bedrooms (3.67%)

SoHo—Doorman studios (1.89%), non–doorman one–bedrooms (0.65%), doorman one–bedrooms (0.41%), non–doorman two–bedrooms (3.91%), doorman two–bedrooms (0.06%)

Lower East Side—Non–doorman one–bedrooms (4.50%), non–doorman two–bedrooms (6.89%)

TriBeCa—Non–doorman one–bedrooms (4.63%), doorman one–bedrooms (6.80%), non–doorman two–bedrooms (4.99%)

Financial District—Non–doorman studios (2.11%), doorman studios (2.18%), non–doorman one–bedrooms (5.36%), doorman one–bedrooms (2.26%), non–doorman two–bedrooms (1.36%), doorman two–bedrooms (2.00%)

Battery Park City—Doorman studios (1.31%), doorman one–bedrooms (4.43%), doorman two–bedrooms (2.90%)

Where Prices Increased:

Harlem–—Non–doorman studios (0.64%)

Upper West Side–—Doorman two–bedrooms (0.04%)

Upper East Side–—Non–doorman studios (0.06%)

Midtown West–—Doorman one–bedrooms (2.85%)

Midtown East–—Non–doorman studios (2.11%), non–doorman two–bedrooms (3.76%)

Murray Hill–—Non–doorman two–bedrooms (0.61%)

Chelsea–—Doorman studios (0.43%), doorman two–bedrooms (0.23%)

Gramercy Park–—Doorman studios (3.98%), doorman two–bedrooms (0.46%)

Greenwich Village–—Doorman studios (3.22%)

East Village–—Doorman studios (2.07%), doorman one–bedrooms (2.28%)

SoHo–—Non–doorman studios (4.83%)

Lower East Side–—Non–doorman studios (3.39%), doorman studios (1.14%), doorman one–bedrooms (8.25%), doorman two–bedrooms (1.41%)

TriBeCa–—Non–doorman studios (4.69%), doorman studios (0.53%), doorman two–bedrooms (3.59%)

Tips for Renters:

• Harlem’s Back with Great Values. As Manhattan rents continue to fall, Harlem rents are leading the way down. With the exception of non–doorman studios, rents are down an average of 4.55%. The largest changes are in non–doorman one and two–bedroom units, which declined by 7.68% and 6.99%. So, for those renters looking for low–priced units, Harlem is the clear choice.
• Ring in the New Year in Chelsea. Been dreaming of a home in Chelsea? December may be the opportunity you’ve been waiting for. Rents are down on non–doorman one–bedroom units 7.08% to $2,676. This is the lowest prices have averaged since The Real Estate Group began reporting data.
• Start NOW. Renters looking to make a move soon should start looking now. The first quarter has historically brought a seasonal rebound to Manhattan, which will mean more competition and a less–favorable environment for renters. While we can’t predict what 2009 will hold, we can see clearly that now is an opportune time for renters to get into the market. We advise renters not to hold out waiting for the “bottom” of the market. Those who wait nearly always miss the window, as the only way to know when the market has hit the bottom is by seeing it in hindsight.

Mean Manhattan Rental Prices

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 November 2008. Graphs tracking citywide and neighborhood price changes over a rolling 13-month period follow.

Manhattan 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: All market data is collected and compiled by The Real Estate Group’s marketing department and is overseen by C.O.O. Daniel Baum. The information presented here are intended for instructive purposes only and has been gathered from sources deemed reliable, though it may be subject to errors, omissions, changes or withdrawal without notice.

If you would like to republish this report on the web, please be sure to source it as the “Manhattan Rental Market Report” with a link back to its original location.