Jul
13

Douglas Elliman Releases September 2013 Elliman Report for Manhattan & Brooklyn Rental Markets

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Douglas Elliman released the September 2013 report for Manhattan & Brooklyn Residential Rental Markets.  The September 2013 Elliman Report for the Manhattan & Brooklyn Rental Markets reported here and summarized below was prepared by Miller Samuel for Douglas Elliman.

“The heavy Manhattan sales volume siphoned off some of the excess demand in the rental market causing prices to slip.”M&B_rentals_09-2013

 After more than two years of rising rents, Manhattan prices slipped a bit as compared to last year. Rents haven’t been rising as quickly as they did in the previous year and the mortgage rate jump last spring pulled many would-be renters into the sales market by the end of the summer. Landlord concessions continued to be rare, but tenants continued to resist rent increases at the time of lease renewal by seeking better affordability if it could be found. With rising mortgage rates and tight credit we expect rents to remain at a plateau for the coming quarters.

  • Median rental price slipped 3.1% to $3,095 from the same period last year. This was the first year-over-year decline since June 2011, as heavy sales volume pulled more renters into the purchase market, incentivized by concerns over rising mortgage rates. The use of concessions by landlords remained limited to 2.7% of new rentals, averaging a 1.2-month rental equivalent.

 

Brooklyn rental prices continued to rise at a fast pace reaching their highest level in five years. Marketing times were faster and there was limited negotiation of list price. An increasing number of renters challenged by higher prices were seeking out affordability rather than renewal. We expect this trend to continue into next year.

  • Median rental price increased 10.4% to $2,800 from prior year levels, second only to the prior month which had been a 5-year high.

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