Manhattan Rental Market Report | MNS is Real Impact Real Estate

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MANHATTAN
RENTAL MARKET REPORT

December 2015

Introduction

Average rent across Manhattan decreased by 0.85% compared to this time last month, from $3,945 in November 2015 to $3,911 in December 2015.

A Quick Look

Rent prices in Manhattan decreased by 0.85% compared to this time last month, from $3,945 in November 2015 to $3,911 in December 2015. Listing inventory decreased by 1.20% from 8,866 rental units in November 2015 to 8,760 rental units in December 2015. From Year-to-Year perspective, the annual average rent increased by 1.95%, from $3,836 in December 2014 to $3,911 in December 2015. The ratio of Non-Doorman units to Doorman units in all of Manhattan changed from 42.3% (NDM) and 57.7% (DM) to 41.4% (NDM) and 58.7% (DM).
It is important to note that the following neighborhoods consisted of a sample size of less than 20 units at the time the sample was taken: Studios – Murray Hill (NDM), SoHo (NDM), Financial District (NDM), TriBeCa (NDM), Gramercy (NDM) , Battery Park City (DM) and SoHo (DM), One Bedrooms – Financial District (NDM), TriBeCa (NDM), Gramercy (NDM) and SoHo (DM), Two Bedrooms – Gramercy (NDM), TriBeCa (NDM), Murray Hill (NDM), Financial District (NDM), Gramercy (DM) and SoHo (DM).
Manhattan continued to see slight decreases this month as a result of seasonal changes, with the overall average rent of each neighborhood moving between -3.3% and +0.9%. The largest growth occurred in the One Bedroom Non Doorman sector in the Financial District, where we saw a 9.4% increase in price. This spike is largely the result of the combination of a low sample size and lower priced rental units departing the market. Studio Doorman units in SoHo experienced the largest decrease since last month, at -20.8%, however this can be considered as an artificial dip due to a sample size consisting of 2 units – the NDM/DM ratio is 9:1 in SoHo so low sample sizes, which cause highly reactive average rents, is common amongst this unit segment.
From an annual perspective, the overall average Manhattan rent increased by 1.95%, the largest increase coming from Battery Park City, which increased by 6.8%.

A Quick Look

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

Where Prices Decreased(monthly)

Chelsea
Doorman Studios -3.0% Non-Doorman One-Bedroom -0.7% Doorman One-Bedroom -1.1% Non-Doorman Two-Bedroom -2.0%
East Village
Doorman Studios -0.2% Non-Doorman Studios -0.9% Non-Doorman One-Bedroom -0.4% Doorman One-Bedroom -1.1% Non-Doorman Two-Bedroom -0.5% Doorman Two-Bedroom -1.8%
Financial District
Doorman Studios -2.1% Doorman One-Bedroom -2.3%
Gramercy
Non-Doorman One-Bedroom -0.2% Doorman Two-Bedroom -1.9%
Greenwich Village
Non-Doorman One-Bedroom -1.9% Doorman Two-Bedroom -0.4% Non-Doorman Two-Bedroom -3.9%
Harlem
Doorman Studios -2.7% Non-Doorman One-Bedroom -1.0% Doorman One-Bedroom -1.1% Doorman Two-Bedroom -2.3% Non-Doorman Two-Bedroom -2.8%
Lower East Side
Doorman Studios -0.5% Doorman One-Bedroom -2.8% Non-Doorman One-Bedroom -1.2% Doorman Two-Bedroom -3.8% Non-Doorman Two-Bedroom -0.3%
Midtown East
Doorman Studios -2.6% Doorman One-Bedroom -3.1% Non-Doorman One-Bedroom -0.5% Doorman Two-Bedroom -0.6% Non-Doorman Two-Bedroom -2.4%
Midtown West
Doorman Studios -0.8% Non-Doorman One-Bedroom -1.0% Doorman One-Bedroom -0.6%
Murray Hill
Doorman Studios -2.6% Non-Doorman One-Bedroom -1.8% Non-Doorman Two-Bedroom -0.5% Doorman Two-Bedroom -5.1%
SoHo
Doorman Studios -20.8% Non-Doorman One-Bedroom -2.5%
Tribeca
Doorman Studios -2.4% Non-Doorman One-Bedroom -1.2% Doorman One-Bedroom -1.7% Non-Doorman Two-Bedroom -2.2% Doorman Two-Bedroom -1.4%
Upper East Side
Non-Doorman Studios -2.3% Non-Doorman One-Bedroom -0.1% Doorman One-Bedroom -0.9% Doorman Two-Bedroom -1.0% Non-Doorman Two-Bedroom -1.5%
Upper West Side
Doorman One-Bedroom -0.2%

Where Prices Increased(monthly)

Battery Park City
Doorman Studios 0.9% Doorman One-Bedroom 0.1% Doorman Two-Bedroom 1.1%
Chelsea
Non-Doorman Studios 0.4% Doorman Two-Bedroom 0.2%
Financial District
Non-Doorman Studios 1.0% Non-Doorman One-Bedroom 9.4% Non-Doorman Two-Bedroom 0.2% Doorman Two-Bedroom 0.6%
Gramercy
Non-Doorman Studios 0.9% Doorman Studios 0.1% Doorman One-Bedroom 0.7% Non-Doorman Two-Bedroom 4.8%
Greenwich Village
Doorman Studios 3.1% Non-Doorman Studios 0.1% Doorman One-Bedroom 0.3%
Harlem
Non-Doorman Studios 1.3%
Lower East Side
Non-Doorman Studios 0.7%
Midtown East
Non-Doorman Studios 0.1%
Midtown West
Non-Doorman Studios 0.5% Non-Doorman Two-Bedroom 1.2% Doorman Two-Bedroom -0.0%
Murray Hill
Non-Doorman Studios 0.4% Doorman One-Bedroom 0.4%
SoHo
Non-Doorman Studios 0.1% Doorman One-Bedroom 2.3% Doorman Two-Bedroom 0.3% Non-Doorman Two-Bedroom 0.2%
Tribeca
Non-Doorman Studios 1.6%
Upper East Side
Doorman Studios 0.5%
Upper West Side
Doorman Studios 0.2% Non-Doorman Studios 0.9% Non-Doorman One-Bedroom 1.9% Non-Doorman Two-Bedroom 1.5% Doorman Two-Bedroom 0.2%
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: December 2014 vs. December 2015
Type December '14 December '15 Change
Non-Doorman Studios $2,366 $2,428 2.6%
Non-Doorman One Bedrooms $3,051 $3,137 2.8%
Non-Doorman Two Bedrooms $4,133 $4,271 3.3%
Manhattan Doorman Rents: December 2014 vs. December 2015
Type December '14 December '15 Change
Doorman Studios $2,970 $2,933 1.2%
Doorman One Bedrooms $4,045 $4,148 2.6%
Doorman Two Bedrooms $6,033 $6,186 2.5%

• Although the monthly average rent increased by only 0.8% since the previous month, the annual average rose at a rate of 6.8% since December 2014 - the largest annual growth across all the Manhattan neighborhoods - indicative of a high demand submarket.

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

• Similar to Battery Park City, the Chelsea monthly average rent remained relatively unchanged, with a decrease of 1%, while the annual average grew by 5.2% as demand for One and Two Bedroom Doorman units increased; reflected in the respective 8% and 14.1% increase in annual average rents.

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

• Average rent fluctuated within +/- 2% across all unit sectors, resulting in a slight 1% decrease in the monthly average rent.
• The annual average rent increased by 3.7%.

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

• Non Doorman One Bedroom Units in the Financial District saw the largest increase in average rent, at 9.4% since last month, largely caused by the combination of limited inventory and a couple lower priced rental units departing the market.
• Overall, both monthly and annual average rent remained relatively stable, moving by 0.9% and 0.6% respectively.

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

• While the average monthly rent remained relatively unchanged, moving by only 0.5%, the annual average rent increased by 5.4%

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

• The monthly average rent decreased slightly by 0.7% as the annual average rent rose by 1.6% since last year.

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

• The monthly and annual average rent both decreased by 1.7%, as the surge of new construction listings over the course of year settled and improved price stability across the neighborhood.

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

• Although the monthly average rent decreased by 1.8%, the annual average rent remained stable moving by only 0.2% since December 2014.

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

• Both the monthly and annual average rent fell slightly by 1.5% and 1.2%, respectively.

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

• Average rent fluctuated within +/- 1.2% across all unit sectors this month, resulting in an overall stable monthly average movement of -0.1% • The annual average rent too remained stable at 0.4%

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

• Two Bedroom Doorman Unit average rent fell by 5.1% this month, caused by a couple higher priced luxury rental units departing the market.
• Overall, the monthly average rent declined by 2%, while the annual average rent remained stable at 0.5%.

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

• Similar to the previous month, Studio Doorman average rent fell drastically at 20.8%. This decrease can be seen as artificial due \ to an extremely limited sample size, which causes heightened average price movements.
• Overall, both monthly and annual average rent fell by 3.3% and 0.7%, respectively.

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

• The monthly average rent fell slightly this month, decreasing by 1.4%, while the annual average rent remained stable moving by 0.2%.

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

• While the average monthly rent remained relatively stable moving by only -0.9%, the annual average rent increased by 3.9% since December 2014.

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

• Similar to the UES, the monthly average rent moved slightly by 0.7%, as the annual average rent increased by 4.1%.

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.

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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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