Feb
10

Douglas Elliman Releases January 2014 Manhattan & Brooklyn Rentals Report

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Douglas Elliman released the January 2014 report for Manhattan & Brooklyn Residential Rental Markets. The January 2014 Elliman Report for the Manhattan & Brooklyn Rental Markets, reported here, and summarized below was prepared by Miller Samuel for Douglas Elliman.

“Brooklyn rental prices increased as Manhattan rental prices continued to slip.”Manhattan_Brooklyn_Rentals_01-2014

 Rental prices in the Manhattan market continued to slip for the 5th consecutive month although the declines remained modest. Landlords continued to expand their use of concessions, as vacancy rates remained higher than last year. Larger sized rentals continued to do well in the new development, luxury and 3-bedroom markets, showing more strength than the overall market. The New York City economy continues to improve and we anticipate a strong rental market in the coming months.

  • Median Manhattan rental price slipped 1.1% to $3,114 from the same period last year ago. Beginning last September, median rental price fell for the fifth consecutive month on a year-over-year basis. However, the slide in rental prices remained slight.
  • The use of concessions by landlords continued to expand, rising to a 13.1% market share from 5% in the same period last year.
  • The overall vacancy rate was 1.81%, up from 1.54% in the prior year period, but fell from near record high of 2.79% in the prior month

Rising rents continued to characterize the Brooklyn market in our first month of the new year. After three months of declining price growth, rental prices jumped in January as the key drivers of the market remained in place, including rising employment and tight credit. Entry-level rentals continued to rise at a faster rate than larger rentals. We anticipate that these active market conditions will continue into the spring.

  •  The Brooklyn January median rental price jumped 12% to $2,830 from the same month last year. Rising New York City employment and tight credit have played a primary role in the growth of Brooklyn rents.

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