Mar
12

Elliman Releases Manhattan & Brooklyn Rentals Report for February 2013

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This week, Elliman released the February 2012 Elliman Report for Manhattan & Brooklyn Rental Markets.   The Rental Market Report summarized below and reported here   was prepared by Miller Samuel for Douglas Elliman.

“Despite the more modest pace of rental price gains at the end of 2012, a more rapid pace has returned in 2013.”

The pace of rising rents in Manhattan cooled at the end of 2012, but returned in February with even stronger gains. We expect the improving economy, low vacancy rates across most markets, and tight credit conditions to continue placing upward pressure on rents in the coming months. However, with rents already at or near record highs, and low mortgage rates turning more would-be renters into first time buyers, rents may not see the same rapid rise throughout the year.

  • After four consecutive months with an average of 1.6% year-over-year price gains, median rent rose 4.7% from prior year levels to $3,190. Average rental price also expanded at a similar pace, rising 4.9% from year ago levels to $3,956.
  • After 7 months of year-over-year declines, the overall Manhattan vacancy rate was unchanged from its 1.69% year ago level.

After taking a breather in January, Brooklyn rental price indicators began to once again rise at a quicker pace in February. The number of days it took to rent a property fell and landlord concessions were rare, as the rental market remained tight. Rents rose quicker for larger apartments, as would-be tenants of smaller rental apartments continued to shift to the purchase market, enticed by record low mortgage rates. We anticipate rents to remain high this year as the economy slowly improves.

  • After last month’s more modest gains, the rental market resumed robust price growth in February. Median rent increased 7.2% from the same month last year to $2,590.

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