Jul
12

Manhattan Residential Rental Market Report Second Quarter 2012

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 This week, we released our Second Quarter report for the Manhattan Residential Rental Market.  Manhattan Residential Rentals Market Overview Q2 2012 reported here and summarized below was prepared by Miller Samuel for Prudential Douglas Elliman.

“Tight mortgage lending conditions and regional economic gains continued to drive rental prices higher.”

  • Median net effective rent was $3,115 for the second quarter, 7.9% higher than $2,888 in the prior year quarter.
  • Landlord concessions were used in only 3.7% of new rental activity with those transactions averaging only 1 month of free rent. The average year-over-year median rental increase in each quarter of the past year has been 7.6%, indicating there has been no ease in the pace of rental price gains. 
  • Studio and 1-bedroom rentals showed the largest gains in rental price indicators, driving affordability down. As a result, the combination of rising rents and falling mortgage rates have caused the highest share of entry-level purchases since 2009. 
  • The rise in rental prices forced many tenants to look elsewhere in search of affordability. This caused inventory to rise, yet days on market remained near 17-year lows. Inventory was up 27.9% to 5,660 apartments over the past year as listing discount compressed further to 1.3% this quarter from 1.7% in the prior year quarter

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