Manhattan Rental Market Report

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Introduction

The Real Estate Group NY is proud to present the August 2010 edition of our Manhattan Rental Market Report™, the only research on the city’s rental rates published on a monthly basis.

Manhattan’s summer rental season comes to a close this month, but activity levels remain high.

Rental prices continue to make small gains — with prices up .37% vs. July 2010 and 4.64% vs. August 2009 numbers. While month-to-month increases have been moderate, the stability of the upward trend is a positive reflection on the overall health of the rental market.

After falling in July, inventories have remained tight this month. Vacancies dropped slightly — down .18% — and with changes in the conversion policies of many major landlords, there is even less available inventory than the data reflects.

In step with seasonal pricing, landlords and property managers have consistently increased prices on available inventories this month and we continue to anticipate that they will not bump prices down in September.

As the fall dip approaches, we will be carefully monitoring rental prices and their ability to hold during the historically slower fall and winter seasons.

A Quick Look

August Average Rental Prices in Manhattan

Greatest Changes Since July

Year-over-year Changes

Notable Trends

Rents Continue to Creep Up — Rents continue their slow trend upward this month increasing by .37% in month-to-month comparisons and 4.64% vs. 2009 numbers. While these small upticks may not be enough to appease property managers, they are a positive sign for the health of the rental market.

Inventory Remains Tight — Vacancies are basically flat this month, down only .18%. With inventory already tight, desirable newly vacant units hitting the market are likely to get quickly swept up.

One Means One — With many landlords restricting the use of temporary and pressurized walls, the city’s “convertible” inventory has virtually dried up. Going forward, it appears that renters looking to share space to save some cash will have limited options.

Where Prices Decreased

Harlem— Non-doorman one-bedrooms (-1.09%), doorman one-bedrooms (-7.75%), non-doorman two-bedrooms (-7.20%)

Upper West Side— Doorman two-bedrooms (-0.57%)

Upper East Side— Non-doorman studios (-2.61%), non-doorman one-bedrooms (-2.82%), non-doorman two-bedrooms (-4.97%)

Midtown West— Doorman studios (-3.25%)

Midtown East— Non-doorman studios (-0.56%), doorman two-bedrooms (-2.16%)

Murray Hill— Non-doorman studios (-4.02%), non-doorman one-bedrooms (-4.46%), doorman one-bedrooms (-1.52%), non-doorman two-bedrooms (-6.42%), doorman two-bedrooms (-0.50%)

Chelsea— Non-doorman one-bedrooms (-2.91%), non-doorman two-bedrooms (-4.36%), doorman two-bedrooms (-4.07%)

Gramercy Park— non-doorman studios (-3.24%), non-doorman one-bedrooms (-2.73%), doorman two-bedrooms (-5.24%)

Greenwich Village— Non-doorman one-bedrooms (-2.77%), non-doorman two-bedrooms (-5.73%), doorman two-bedrooms (-5.99%)

East Village— Doorman studios (-4.43%), doorman two-bedrooms (-5.18%)

SoHo— Non-doorman studios (-5.18%), doorman one-bedrooms (-1.73%), non-doorman two-bedrooms (-4.33%)

Lower East Side— Non-doorman one-bedrooms (-3.47%)

TriBeCa— Non-doorman one-bedrooms (-5.12%), doorman one-bedrooms (-2.77%), non-doorman two-bedrooms (-5.32%)

Financial District— Non-doorman studios (-4.93%), non-doorman one-bedrooms (-5.48%), doorman one-bedrooms (-1.27%), non-doorman two-bedrooms (-5.24%), doorman two-bedrooms (-5.78%)

Battery Park City— Doorman two-bedrooms (-3.80%)

Where Prices Increased

Harlem— Non-doorman studios (5.66%), doorman studios (5.38%), doorman two-bedrooms (8.02%)

Upper West Side— Non-doorman studios (4.34%), doorman studios (3.38%), non-doorman one-bedrooms (1.93%), doorman one-bedrooms (1.11%), non-doorman two-bedrooms (6.75%)

Upper East Side— Doorman studios (4.04%), doorman one-bedrooms (0.22%), doorman two-bedrooms (0.18%)

Midtown West— Non-doorman studios (7.13%), non-doorman one-bedrooms (7.22%), doorman one-bedrooms (1.40%), non-doorman two-bedrooms (7.32%), doorman two-bedrooms (1.83%)

Midtown East— Doorman studios (3.57%), non-doorman one-bedrooms (6.85%), doorman one-bedrooms (2.25%), non-doorman two-bedrooms (3.71%)

Murray Hill— Doorman studios (8.17%)

Chelsea— Non-doorman studios (7.54%), doorman studios (1.68%), doorman one-bedrooms (3.71%)

Gramercy Park— Doorman studios (2.22%), doorman one-bedrooms (3.79%), non-doorman two-bedrooms (3.09%)

Greenwich Village— Non-doorman studios (2.68%), doorman studios (5.01%), doorman one-bedrooms (0.51%)

East Village— Non-doorman studios (7.43%), non-doorman one-bedrooms (0.61%), doorman one-bedrooms (8.44%), non-doorman two-bedrooms (4.30%)

SoHo— Doorman studios (5.43%), non-doorman one-bedrooms (7.48%), doorman two-bedrooms (8.22%)

Lower East Side— Non-doorman studios (0.82%), doorman studios (5.86%), doorman one-bedrooms (1.35%), non-doorman two-bedrooms (3.58%), doorman two-bedrooms (1.93%)

TriBeCa— Non-doorman studios (8.70%), doorman studios (4.43%), doorman two-bedrooms (2.01%)

Financial District— Doorman studios (0.53%)

Battery Park City— Doorman studios (4.58%), doorman one-bedrooms (0.28%)

Tips for Renters

• Share on the UES. With convertible inventory virtually nil, those looking for a space for two should head uptown to the Upper East Side. Non-doorman two-bedroom units fell 4.97% this month to $2,886 — a deal only Harlem can top.
• Studio steals. Those looking for the convenience of a prime Manhattan address at a rock bottom price should head to Midtown East. Non-doorman studios in the neighborhood fell .56% this month to $1,657. Need service? East Village doorman studios fell an additional 4.43% this month to $2,188.
• TriBeCa tumbles. Non-doorman two-bedrooms in TriBeCa have taken another tumble this month, falling by 5.24% to $5,930. Since August of 2009, these units are down 11% and are now at their lowest price point since The Real Estate Group began recording data in 2007.

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 August 2010. Graphs tracking citywide and neighborhood price changes over a rolling 13-month period follow.

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 TDG/The Real Estate Group NY 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 NY’s marketing department. 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_rental_market_report).