Manhattan Rental Market Report

Updated: June 2008

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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

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Letter From Our Chief Operating Officer

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

This month, the Manhattan rental market is a mixed bag of highs and lows, perpetuating an aura of uncertainty about the current condition of the market and how it will affect the months ahead. With the same uncertainties mirrored in Manhattan’s financial markets, employment levels and overall economic climate, it comes as no surprise that housing inventory is not being consumed as quickly as many would like, and that landlords are taking precautionary measures so as not to be saddled with excess vacancies in the fall. Many property owners are continuing to offer concessions such as owner-paid fees or one month’s free rent to provide consumers with a little “relief at the pump” of their own.

In looking back to the beginning of the year, citywide rental prices have remained stagnant, a trend that is unusual for this historically busy time of year. In years past, we saw rental prices begin their ascent in late April and continue through at least mid-August before leveling off into the fall and winter months. This year, however, we are clearly not seeing that same momentum coming into the marketplace.

Almost all neighborhoods experienced both price gains and losses in June, with dramatic hikes for specific apartment sizes and considerable drops in others, leading to very little change in average prices across the board. With landlords adjusting and readjusting prices to gauge the state of the market, it is still unclear how this year’s busy season will turn out.

Sincerely,

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

A Quick Look

Non-Doorman Buildings (Average Prices)
	Most Expensive	Least Expensive
Studios	TriBeCa $2,987	Harlem $1,287
One-Bedrooms	TriBeCa $4,177	Harlem $1,782
Two-Bedrooms	TriBeCa $7,285	Harlem $2,405

Doorman Buildings (Average Prices)
	Most Expensive	Least Expensive
Studios	SoHo $2,903	Harlem $1,289
One-Bedrooms	SoHo $4,892	Harlem $1,810
Two-Bedrooms	SoHo $7,013	Harlem $2,636

Greatest Changes Since May:

• Doorman studios – Battery Park City – Up 5.6% ($149)
• Doorman one-bedrooms – SoHo – Up 9.6% ($428)
• Doorman two-bedrooms – East Village – Up 7.4% ($390)

• Non-doorman studios – Gramercy Park – Up 11.6% ($255)
• Non-doorman one-bedrooms – Harlem – Up 8.1% ($134)
• Non-doorman two-bedrooms – Lower East Side – Up 12.2% ($384)

Year-over-year Changes*:

Non-Doorman Citywide Rents: June ’07 vs. June ’08
	June ’07	June ’08	Change
Studios	$2,144	$2,190	+2.1%
One-Bedrooms	$2,978	$2,859	-4%
Two-Bedrooms	$4,145	$4,069	-1.8%

Doorman Citywide Rents: June ’07 vs. June ’08
	June ’07	June ’08	Change
Studios	$2,647	$2,642	-0.2%
One-Bedrooms	$3,747	$3,786	+1%
Two-Bedrooms	$5,761	$5,700	-1.1%

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

Notable Trends:

Doorman two-bedroom rents in every Manhattan neighborhood increase except for those in Midtown West—Though rental prices have risen and fallen erratically across the city with fluctuations in inventory and mixed demand for housing, one thing remains clear: There is a consistent need for two-bedrooms, possibly driven by an increase in the number of young people in Manhattan looking for professional shares. Prices in neighborhoods popular for attracting this particular demographic went up by as much as 7.4% in the East Village and 5% in Murray Hill. TriBeCa doorman two-bedroom units increased in price by 6.4%, and those in other neighborhoods typically saw rents rise between 2% and 4%.

In Midtown West, non-doorman inventory is up, and all prices are down with the exception of doorman one-bedrooms—Contrary to the positive changes seen in Midtown West non-doorman prices last month, rents in those units, as well as doorman studios and two-bedrooms, are on the downswing once again, with the greatest decrease in non-doorman two-bedrooms at 4.1%. Despite these falling rents, however, doorman one-bedroom prices increased a solid 6.5%, showing that there is still a healthy demand for these apartments that is exceeding the supply.

Harlem prices are on the rise as renters make their way north—Since January, non-doorman rents had steadily been decreasing and, last month, all rental prices went down except for non-doorman two-bedrooms; this month, however, all prices with the exception of doorman studios have bounced back rather significantly. Harlem non-doorman one- and two-bedrooms saw the most pronounced changes, as prices in these units increased by 8.1% and 5.5%, respectively.

TriBeCa and SoHo rents recover from last month’s temporary reduction—While renters were encouraged to seek housing deals in these exclusive neighborhoods in May due to their decreased rents, it appears they did just that, causing prices to go up once more. TriBeCa non-doorman studio and SoHo doorman one-bedroom rents both increased by 9.6%, with the former’s prices reaching their highest point in the last 12 months at $2,987. SoHo’s doorman studio rents are also at a 12-month peak at $2,903.

Where Prices Decreased:

Harlem— Doorman studios (2.1%)

Upper West Side— Doorman studios (5.2%), doorman one-bedrooms (3.5%)

Upper East Side— Non-doorman studios (2.3%), non-doorman two-bedrooms (4.4%)

Midtown West— Non-doorman studios (1.3%), doorman studios (3.7%), doorman one-bedrooms (1.4%), non-doorman two-bedrooms (4.1%), doorman two-bedrooms (2.9%)

Midtown East— Doorman studios (2.9%), non-doorman one-bedrooms (1.3%), doorman one-bedrooms (1.9%)

Murray Hill— Non-doorman studios (0.8%), non-doorman two-bedrooms (9.3%)

Chelsea— Doorman studios (4.5%), non-doorman one-bedrooms (4.6%)

Gramercy Park— Doorman studios (2.8%), non-doorman one-bedrooms (3.3%), non-doorman two-bedrooms (6.6%)

Greenwich Village— Non-doorman studios (3.6%), doorman studios (2.8%), non-doorman one-bedrooms (0.9%), doorman one-bedrooms (1.9%), non-doorman two-bedrooms (3.7%)

East Village— Non-doorman studios (1.2%), doorman studios (by 3.2%), non-doorman one-bedrooms (0.1%), doorman one-bedrooms (6.9%), non-doorman two-bedrooms (0.1%)

SoHo— Non-doorman one-bedrooms (3.4%), non-doorman two-bedrooms (4.1%)

Lower East Side— Doorman studios (5%), doorman one-bedrooms (2.4%)

TriBeCa— Non-doorman one-bedrooms (0.9%)

Financial District— Doorman studios (2.9%), non-doorman one-bedrooms (3.6%)

Battery Park City— Doorman one-bedrooms (2%)

Where Prices Increased:

Harlem— Non-doorman studios (2.9%), non-doorman one-bedrooms (8.1%), doorman one-bedrooms (3.1%), non-doorman two-bedrooms (5.5%), doorman two-bedrooms (2.4%)

Upper West Side— Non-doorman studios (5.9%), non-doorman one-bedrooms (2%), non-doorman two-bedrooms (2.1%), doorman two-bedrooms (3.4%)

Upper East Side— Doorman studios (3.3%), non-doorman one-bedrooms (2.3%), doorman one-bedrooms (0.3%), doorman two-bedrooms (0.9%)

Midtown West— Doorman one-bedrooms (6.5%)

Midtown East— Non-doorman studios (6.2%), non-doorman two-bedrooms (4.3%), doorman two-bedrooms (2.8%)

Murray Hill— Doorman studios (0.2%), non-doorman one-bedrooms (2%), doorman one-bedrooms (2.4%), doorman two-bedrooms (5%)

Chelsea— Non-doorman studios (6.1%), doorman one-bedrooms (0.9%), non-doorman two-bedrooms (2.9%)

Gramercy Park— Non-doorman studios (11.6%), doorman one-bedrooms (3.4%), doorman two-bedrooms (4%)

Greenwich Village— Doorman two-bedrooms (3.3%)

East Village— Doorman two-bedrooms (7.4%)

SoHo— Non-doorman studios (5.6%), doorman studios (2%), doorman one-bedrooms (9.6%), doorman two-bedrooms (1.3%)

Lower East Side— Non-doorman studios (0.8%), non-doorman one-bedrooms (0.7%), non-doorman two-bedrooms (12.2%), doorman two-bedrooms (3.6%)

TriBeCa— Non-doorman studios (9.6%), doorman studios (3.2%), doorman one-bedrooms (4.4%), non-doorman two-bedrooms (1.9%), doorman two-bedrooms (6.4%)

Financial District— Non-doorman studios (0.1%), doorman one-bedrooms (1.6%), non-doorman two-bedrooms (8.3%), doorman two-bedrooms (0.1%)

Battery Park City— Doorman studios (5.6%), doorman two-bedrooms (2.4%)

Tips for Renters:

• If you’re still looking for a professional share, look in Murray Hill. The most notable decrease in rents this month was in Murray Hill non-doorman two-bedrooms, where prices dropped 9.3% ($374). Prices for all other unit sizes and service levels either increased or remained stable, so act now if you want to beat the crowds and snag a deal.
• Or, you could try Gramercy Park’s non-doorman two-bedrooms. These elegant apartments decreased in price by 6.6% this month, falling below the $4,000 mark and hitting their lowest point in 12 months. This may be your opportunity to get your hands on one of those coveted keys to the park.
• Rent in a luxury building and your fee could be free. Many owners of large luxury buildings are offering owner-paid fees (OPs), in an effort to ensure that they won’t be carrying excess inventory into the fall. This is generally only done during down markets, so to be offered incentives in a healthy rental season such as the one we’re experiencing currently is a rare treat.

Mean Citywide 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 June 2008. Graphs tracking citywide and neighborhood price changes over a rolling 12-month period follow.

Citywide 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.