Updated: February 2009

 

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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

   

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Letter From Our Chief Operating Officer

On behalf of The Real Estate Group, I am pleased to present the February 2009 edition of our Manhattan Rental Market Report, the only research on the city’s rental rates published on a monthly basis.

The Manhattan rental market continues to trail 2008 levels this month as rents are down across the board in year–over–year comparisons. The largest changes were in doorman studio units, which are down by 8.33%.

Month–to–month comparisons have been consistently down in recent months, however, category performance versus January is mixed. While doorman one and two–bedrooms were down 1.68% and 1.38%, non–doorman studio units showed an increase of 2.47% — the rest, were relatively flat.

After the decrease we observed last month, inventory levels are back on the rise in February. Vacancies are up 15% overall — 11% in non–doorman and 17% in doorman units — further supporting the weakened state of the market.

The driving force behind demand continues to be Manhattan’s conversion to a no fee market as renters continue to consistently respond to no fee properties and no fee advertising. These types of concessions appear to be a successful method to decrease inventory levels, as we observed last month.

Looking ahead, it seems that the road to recovery in Manhattan will not be the quick one that many had hoped for. While demand in Manhattan seems to be increasing, the market does not yet seem ready to be tested for price increases.

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 $1,268
One–bedrooms	TriBeCa $3,894	Harlem $1,651
Two–bedrooms	TriBeCa $5,994	Harlem $2,099

 

Doorman Buildings (Average Prices)
	Most Expensive	Least Expensive
Studios	Lower East Side $2,711	Harlem $1,352
One–bedrooms	SoHo $4,746	Harlem $1,879
Two–bedrooms	TriBeCa $7,089	Harlem $2,682

Greatest Changes Since January:

• Non–doorman studios – Chelsea – Up 8.79% ($178)
• Non–doorman one–bedrooms – Lower East Side – Up 7.31% ($178)
• Non–doorman two–bedroom – Financial District – Down 7.90% ($345)

• Doorman studios – Greenwich Village – Down 7.73% ($210)
• Doorman one–bedrooms – Lower East Side – Down 8.41% ($240)
• Doorman two–bedroom – Midtown East – Down 7.08% ($375)

Year-over-year Changes:

Non–doorman Citywide Rents: February ’08 vs. February ’09
	February ’08	February ’09	Change
Studios	$2,055	$1,979	-3.70%
One–bedrooms	$2,821	$2,632	-6.70%
Two–bedrooms	$3,929	$3,654	-6.99%

 

Doorman Citywide Rents: February ’08 vs. February ’09
	February ’08	February ’09	Change
Studios	$2,579	$2,364	-8.33%
One–bedrooms	$3,601	$3,395	-5.71%
Two–bedrooms	$5,287	$5,258	-0.54%

Notable Trends:

Could Manhattan be finding the bottom? — The first quarter rebound that would normally be expected post–holidays is absent again this month, but there are some positive signs for the market. Price changes are relatively flat this month, with the greatest change, 2.47% in non–doorman studios, actually being an increase. Still, rents are down across the board in year–over–year comparisons – illustrating the magnitude of the downward pressure Manhattan has been under.

Inventories are back up — After a brief dip last month, inventories are back on the rise throughout Manhattan. Doorman units are up 17% since last month and non–doorman properties up 11% – showing a clear link between price increases and inventory levels.

Non–doorman / Doorman price swap — Like most Manhattan renters, one usually assumes doorman units will cost more, but this is no longer necessarily the case. Neighborhoods like the Financial District, TriBeCa and the Lower East Side all have one–bedroom price points that are nearly identical for doorman and non–doorman units. So, if you’re looking for service, now may be the time to grab it at a no–service price.

Where Prices Decreased:

Upper West Side—Non–doorman studios (2.26%), doorman studios (-0.94%), non–doorman one–bedrooms (2.89%)

Upper East Side—Non–doorman studios (1.53%), non–doorman one–bedrooms (1.55%), doorman one–bedrooms (0.91%), doorman two–bedrooms (2.47%)

Midtown West—Doorman studios (0.73%), non–doorman one–bedrooms (3.38%), doorman one–bedrooms (4.12%), non–doorman two–bedrooms (0.76%)

Midtown East—Doorman studios (5.49%), non–doorman one–bedrooms (2.06%), doorman one–bedrooms (7.82%), non–doorman two–bedrooms (4.19%), doorman two–bedrooms (7.08%)

Murray Hill—Non–doorman studios (0.50%), doorman studios (2.21%), non–doorman one–bedrooms (3.15%), doorman one–bedrooms (2.02%), non–doorman two–bedrooms (0.13%)

Chelsea—Doorman studios (3.65%), non–doorman one–bedrooms (2.16%)

Gramercy Park—Non–doorman studios (2.60%), non–doorman one–bedrooms (2.82%)

Greenwich Village—Doorman studios (7.73%), non–doorman one–bedrooms (0.70%), doorman one–bedrooms (3.11%), doorman two–bedrooms (2.60%)

East Village—Doorman studios (1.54%), non–doorman two–bedrooms (4.03%)

SoHo—Doorman studios (0.59%), doorman one–bedrooms (4.76%), doorman two–bedrooms (0.95%)

Lower East Side—Doorman one–bedrooms (8.41%), non–doorman two–bedrooms (1.06%)

TriBeCa—Doorman studios (1.11%), doorman one–bedrooms (3.06%), non–doorman two–bedrooms (2.44%)

Financial District—Non–doorman studios (0.94%), doorman studios (2.08%), doorman one–bedrooms (2.68%), non–doorman two–bedrooms (7.90%), doorman two–bedrooms (0.80%)

Battery Park City—Doorman studios (1.81%)

Where Prices Increased:

Harlem—Non–doorman studios (5.26%), doorman studios (5.92%), non–doorman one–bedrooms (1.81%), doorman one–bedrooms (4.05%), non–doorman two–bedrooms (2.12%), doorman two–bedrooms (6.94%)

Upper West Side—Doorman one–bedrooms (0.46%), non–doorman two–bedrooms (0.19%), doorman two–bedrooms (4.39%)

Upper East Side—Doorman studios (1.66%), non–doorman two–bedrooms (0.08%)

Midtown West—Non–doorman studios (3.31%), doorman two–bedrooms (1.66%)

Midtown East—Non–doorman studios (2.84%)

Murray Hill—Doorman two–bedrooms (4.39%)

Chelsea—Non–doorman studios (8.79%) doorman one–bedrooms (3.13%), non–doorman two–bedrooms (2.85%), doorman two–bedrooms (2.07%)

Gramercy Park—Doorman studios (4.68%), doorman one–bedrooms (5.42%), non–doorman two–bedrooms (7.17%), doorman two–bedrooms (6.70%)

Greenwich Village—Non–doorman studios (4.39%), non–doorman two–bedrooms (4.93%)

East Village—Non–doorman studios (1.68%), non–doorman one–bedrooms (2.16%), doorman one–bedrooms (0.95%), doorman two–bedrooms (2.15%)

SoHo—Non–doorman studios (7.14%), non–doorman one–bedrooms (5.25%), non–doorman two–bedrooms (4.39%)

Lower East Side—Non–doorman studios (3.26%), doorman studios (7.49%), non–doorman one–bedrooms (7.31%), doorman two–bedrooms (2.53%)

TriBeCa—Non–doorman studios (5.06%), non–doorman one–bedrooms (5.21%), doorman two–bedrooms (6.22%)

Financial District—Non–doorman one–bedrooms (4.62%)

Battery Park City—Doorman one–bedrooms (0.68%), doorman two–bedrooms (0.62%)

Tips for Renters:

• Families find a home in the Financial District. Recent press has called attention to the Financial District as an emerging area for families; and with a 7.90% decrease on non–doorman two–bedroom units and the third lowest price point in all of Manhattan for doorman two–bedrooms, we couldn’t agree more. Renters looking for more space for their growing families should check out the FiDi for deals.
• Uptown – a bargain hunter’s dream. It wasn’t long ago when uptown was the most coveted real estate in Manhattan – removed from the hustle and bustle, but still connected to the scene. However, lately the downtown trend has made way for some excellent deals around the park – especially for singles. The Upper East Side is the second least expensive price point for non–doorman studios at $1,718 and the Upper West Side comes in at #3 with $1,755 – making them both affordable options.
• Midtown East takes some hits. Midtown East took some rent hits this month. So if you’re looking to move into the area, now may be the time to jump in and start looking. The largest changes were in doorman one–bedroom units, which fell 7.82%, and doorman two–bedroom units, which dropped 7.08%.

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 February 2009. Graphs tracking citywide and neighborhood price changes over a rolling 13-month period follow.

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

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 (http://www.tregny.com/manhattan-apt-rental-report.jsp).