Manhattan Rental Market Report | MNS is Real Impact Real Estate

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MANHATTAN
RENTAL MARKET REPORT

March 2016

Introduction

Average rent across Manhattan remained relatively unchanged this month, decreasing by only 0.005%, from $3,850.45 in February 2016 to $3,850.26 in March 2016.

A Quick Look

Rent prices in Manhattan remained virtually unchanged this month with the slightest decrease of 0.005%, from $3,850.45 in February 2016 to $3,850.26 in March 2016. Conversely, rental inventory increased by 8.25%, from 8,607 units in February 2015 to 9,317 units in March 2015. From an annual perspective, the Manhattan average rent declined by 2.92%, from $3,966.00 in March 2015 to $3,850.26 in March 2016. The ratio on Non-Doorman units to Doorman units in all of Manhattan changed from 40.4% (NDM) and 59.6% (DM) to 40.1% (NDM) and 59.9% (DM).
It is important to note that the following neighborhoods consisted of a sample size of less than 25 units at the time the sample was taken: Studio –SoHo (NDM), Gramercy (NDM), Financial District (NDM), TriBeCa (NDM), Battery Park City (DM), Lower East Side (DM), SoHo (DM), One Bedroom - Financial District (NDM), TriBeCa (NDM), SoHo (DM) and Two Bedroom – Gramercy (NDM), Financial District (NDM), Murray Hill (NDM), TriBeCa (NDM), Soho (DM), Gramercy (DM).
As we enter the Spring season, inventory has begun to increase as leases begin to turnaround. However, with this increase in supply, and as average monthly prices across the neighborhoods moved between -2.8% and 2.5%, the overall average borough rent remained unchanged. As we move closer to the mid-year, we expect pricing to gradually increase.
The largest increase and decrease in average rent this month was seen in SoHo Studio DM units and TriBeCa Studio NDM units. As these areas and unit classes continually see extremely low sample sizes, price movements are often abnormally inflated. These areas aside, the Financial District saw a steady growth in rent this month, as all unit classes increased between 1.2% and 4.7%, with an overall monthly increase of 2.5%. From an annual perspective, and aside from SoHo and TriBeCa, Harlem saw the largest decrease in rent, particularly amongst the doorman sector. This is the result of a very heavy year in 2015 of higher priced new construction units hitting the market, and subsequently this year, balancing out.

A Quick Look

Notable Trends: Manhattan Highs and Lows (Average Prices)
Doorman Buildings (Average Prices)

Where Prices Decreased(monthly)

Battery Park City
Doorman Two-Bedroom -0.9%
Chelsea
Doorman One-Bedroom -1.7% Non-Doorman Two-Bedroom -1.6%
East Village
Doorman Studios -2.1% Doorman One-Bedroom -0.1% Doorman Two-Bedroom -0.5%
Gramercy
Doorman One-Bedroom -1.6%
Greenwich Village
Doorman Studios -3.0% Non-Doorman One-Bedroom -0.6% Doorman Two-Bedroom -2.1% Non-Doorman Two-Bedroom -0.7%
Harlem
Non-Doorman Studios -0.3% Doorman Studios -4.1% Doorman One-Bedroom -0.6% Doorman Two-Bedroom -4.5%
Lower East Side
Doorman Studios -0.9% Doorman One-Bedroom -1.2% Non-Doorman One-Bedroom -3.9% Doorman Two-Bedroom -2.9%
Midtown East
Doorman Two-Bedroom -0.2%
Midtown West
Doorman One-Bedroom -0.8%
Murray Hill
Doorman Studios -0.8% Non-Doorman One-Bedroom -2.6%
SoHo
Non-Doorman One-Bedroom -1.2% Doorman One-Bedroom -1.3% Non-Doorman Two-Bedroom -1.4%
Tribeca
Doorman Studios -2.3% Non-Doorman Studios -32.5%
Upper East Side
Non-Doorman Studios -0.9% Non-Doorman One-Bedroom -0.6%
Upper West Side
Non-Doorman Studios -0.1% Non-Doorman One-Bedroom -0.9% Doorman Two-Bedroom -0.8%

Where Prices Increased(monthly)

Battery Park City
Doorman Studios 0.3% Doorman One-Bedroom 0.4%
Chelsea
Non-Doorman Studios 1.3% Doorman Studios 2.9% Non-Doorman One-Bedroom 0.7% Doorman Two-Bedroom 1.4%
East Village
Non-Doorman Studios 1.4% Non-Doorman One-Bedroom 2.8% Non-Doorman Two-Bedroom 0.2%
Financial District
Doorman Studios 1.2% Non-Doorman Studios 1.5% Doorman One-Bedroom 1.7% Non-Doorman One-Bedroom 3.9% Non-Doorman Two-Bedroom 4.7% Doorman Two-Bedroom 1.5%
Gramercy
Non-Doorman Studios 0.5% Doorman Studios 0.4% Non-Doorman One-Bedroom 0.7% Doorman Two-Bedroom 0.6% Non-Doorman Two-Bedroom 0.9%
Greenwich Village
Non-Doorman Studios 0.9% Doorman One-Bedroom 1.2%
Harlem
Non-Doorman One-Bedroom 2.5% Non-Doorman Two-Bedroom 0.2%
Lower East Side
Non-Doorman Studios 0.7% Non-Doorman Two-Bedroom 2.7%
Midtown East
Non-Doorman Studios 0.9% Doorman Studios 0.8% Non-Doorman One-Bedroom 0.3% Doorman One-Bedroom 1.8% Non-Doorman Two-Bedroom 3.0%
Midtown West
Doorman Studios 1.4% Non-Doorman Studios 0.9% Non-Doorman One-Bedroom 1.3% Doorman Two-Bedroom 1.7% Non-Doorman Two-Bedroom 0.4%
Murray Hill
Non-Doorman Studios 0.2% Doorman One-Bedroom 1.1% Non-Doorman Two-Bedroom 2.1% Doorman Two-Bedroom 0.5%
SoHo
Doorman Studios 17.9% Non-Doorman Studios 0.5% Doorman Two-Bedroom 0.8%
Tribeca
Non-Doorman One-Bedroom 10.0% Doorman One-Bedroom 2.2% Non-Doorman Two-Bedroom 0.6% Doorman Two-Bedroom 2.6%
Upper East Side
Doorman Studios 0.5% Doorman One-Bedroom 0.6% Doorman Two-Bedroom 0.2% Non-Doorman Two-Bedroom 1.5%
Upper West Side
Doorman Studios 0.8% Doorman One-Bedroom 1.0% Non-Doorman Two-Bedroom 0.5%
manhattan quick look studios manhattan quick look 1 bed manhattan quick look 2 bed manhattan quick look 2 bed

Year-Over-Year Changes

Manhattan Non-Doorman Rents: March 2015 vs. March 2016
Type March '15 March '16 Change
Non-Doorman Studios $2,482 $2,384 3.9%
Non-Doorman One Bedrooms $3,181 $3,081 3.1%
Non-Doorman Two Bedrooms $4,432 $4,281 4.8%
Manhattan Doorman Rents: March 2015 vs. March 2016
Type March '15 March '16 Change
Doorman Studios $3,203 $2,938 8.3%
Doorman One Bedrooms $4,183 $4,104 1.9%
Doorman Two Bedrooms $6,074 $6,101 0.4%

• Both the monthly and annual average rent remained relatively unchanged, moving by only -0.3% and 0.9%, respectively.

battery park city studio apartment price trends battery park one bedroom prices battery park city two bedroom apartment price trends

• Studio doorman average rent saw a 2.9% growth, triggered by lower priced units departing the market, as other unit classes moved within +/- 1.7%.
• Overall, the monthly average rent remained stable at 0.4%

chelsea studio apartment price trends chelsea one bedroom apartment price trends chelsea two bedroom apartment price trends

• The monthly average rent remained stable moving by only 0.1% as the annual average rent increased by 1.3%.

east village studio apartment price trends east village one bedroom apartment prices east village two bedroom apartment price trends

• All unit classes increased this month, between 1.2% and 4.7%, with an overall monthly increase of 2.5%.

financial district nyc studio apartment prices financial district one bedroom apartments financial district two bedroom apartment price trends

• Gramercy rent remained stable and relatively unchanged this month with price movements within +/- 1.6%, resulting in an overall average 0.3% price change.

gramercy studio apartment trends gramercy one bedroom apartment price trends gramercy two bedroom apartment price trends

• Overall average rent this month moved by -0.8%, as the annual average rent increased by 1.0%.

greenwich village studio apartment prices greenwich village one bedroom apartment prices greenwich village two bedroom apartment prices

• Similar to the previous month, the Doorman Sector in Harlem saw noticeable declines, influencing the monthly and annual average rent to dip by 1.5% and 12.7%, respectively. This is the result of a heavy year in 2015 of higher priced new construction units hitting the market, and subsequently this year, balancing out.

harlem studio apartment price trends harlem one bedroom prices harlem two bedroom apartment price trends

• Both the monthly and annual average rent saw decreases of 1.1% and 2.2%, respectively

lower east side studio apartment prices lower east side one bedroom apartment price trends lower east side two bedroom apartment price trends

• The Two Bedroom Non Doorman unit sector saw an increase of 3% in average rent, as the other unit classes moved between -0.2% and 1.8%, balancing out the overall average price change at 1.0% this month.

midtown east studio apartment price trends midtown east one bedroom price trends midtown east two bedroom price trends

• Midtown West remained stable this month with a slight increase of 0.8%, as the annual average rent decreased slightly by 0.5%.

midtown west studio apartment price trends midtown west one bedroom price trends midtown west two bedroom apartment price trends

• The monthly average rent remained relatively unchanged this month, moving by only 0.3%.

murray hill studio apartment price trends murray hill one bedroom apartment price trends murray hill two bedroom apartment price trends

• The largest growth this month of 17.9% was observed in Studio Doorman units, largely the result of a sample size of only 2 luxury units.
• Although the monthly average rent increased slightly by 1.3%, the annual average rent saw a decline of 14.9%, again the result of a continued low sample of doorman units in the Soho area, which influences abnormal changes in average pricing.

soho studio apartment prices soho one bedroom apartment price trends soho two bedroom apartment prices

• Similar to SoHo, extremely low sample sizes amongst Studio and One Bedroom Non Doorman units resulted in large price fluctuations in average rent, at 32.5% and 10%, respectively.
• Despite these movements, the monthly and annual average rent moved slightly by -2.58% and -1.3%, respectively.

tribeca studio apartment prices tribeca one bedroom apartment price trends tribeca two bedroom apartment prices

• Overall, both the monthly and annual average rent remained relatively unchanged at 0.3% and 0.7%, respectively.

upper east side studio apartment price trends upper east side one bedroom price trends upper east side two bedroom price trends

• Overall, both the monthly and annual average rent remained relatively unchanged at -0.002% and 0.7%, respectively

upper west side studio apartment price trends upper west side one bedroom price trends upper west side two bedroom price trends

The Report Explained

The The Manhattan Rental Market Report™ 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 MNS 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).

Author:

MNS has been helping Manhattan and Brooklyn landlords and renters navigate the rental market since 1999. From large companies to individuals, MNS tailors services to meet your needs. Contact us today to see how we can help.

CONTACT US NOW: 212.475.9000

Note: All market data is collected and compiled by MNS's marketing department. The information presented here is 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 -Brooklyn Rental Market Report- with a link back to its original location (http://www.mns.com/manhattan_rental_market_report)

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