NEW YORK, Sept. 30, 2016 /PRNewswire/ --
Key facts for August
2016:
- Manhattan's median rent
increased 2.9 percent year-over-year to $3,320, half the pace of growth at this time last
year (5.8 percent).
- Brooklyn's median rent
increased 1.9 percent to $2,932, the
slowest annual growth since December
2010 and less than half the growth in August 2015 (4.7 percent).
- East Brooklyn's rent increased 5 percent, which was the most of
any submarket in either borough.
- Luxury rentals are slowing to a 2010 rate of price growth with
2.2 percent price growth in Manhattan and 2.7 percent growth in
Brooklyn.
- Homes in Northwest Brooklyn
stayed on the market the longest at a median of 26 days. Homes in
Upper Manhattan rented the fastest at 21 days.
While sales price growth in Manhattan and Brooklyn has been slowing over the past year,
the rental market is starting to follow suit, with the luxury
market leading the way. Overall, median rents in both Manhattan and Brooklyn continue to increase as of last
month, but grew at only half their 2015 pace, according to the
August 2016 StreetEasy® Market Reportsi.
In August, Manhattan's median
rent increased 2.9 percent to $3,320,
according to the StreetEasy Rent Indicesii. At this time
last year, rents increased 5.8 percent year-over-year in
Manhattan. The Midtown and
Downtown submarkets experienced the greatest annual increase in
rent, at 3.2 percent and 3.1 percent, respectively. Upper
Manhattan and the Upper West Side
had the smallest rent growth at 2.6 percent and 2 percent,
respectively.
Brooklyn's median rent
increased 1.9 percent year-over-year to $2,932, the slowest annual growth since
December 2010 and less than half the
year-over-year growth recorded in August
2015 (4.7 percent). East Brooklyn's median rent rose 5
percent - the greatest increase in rent among submarkets in both
boroughs.
"The rental market was much calmer this summer than in years
past," said StreetEasy economist Krishna
Rao. "Though rents in Manhattan have been rising, this is mainly due
to demand at the bottom of the market. Rentals in Brooklyn are following a similar pattern as
competition for rentals at the lower end of the market remains
tight. However, a surplus of luxury units may give negotiating
power to those looking within this higher price point."
When examining each borough by price tier, the overall declines
in price growth can be attributed to the luxury segment. The most
expensive rentals in Manhattan
experienced the least growth of all price tiers and the lowest
price growth since September 2010,
increasing 2.2 percent since last year. By contrast, rents for the
least expensive rentals grew twice as fast, increasing 4.4 percent.
Brooklyn shows a similar trend at
work as the price of luxury rentals increased 2.7 percent since
last August, which is the lowest price growth since July 2010. Meanwhile, median rent of Brooklyn's least expensive homes increased 6.1
percent.
Brooklyn rentals sat on the
market for a median of 23 days, three days faster than last year.
Homes in Northwest Brooklyn took
the longest to find a renter at 26 days, compared to a median of 21
days in August 2015. In Manhattan, rentals remained on the market for
a median of 22 days, only one day longer than last year. The Upper
West Side and Midtown were the only submarkets in which properties
rented more quickly, a decrease of two days and 2.5 days,
respectively. Homes in Upper Manhattan rented the fastest at a
median of 21 days.
According to the StreetEasy Rent Forecastsiii,
Manhattan's median rent will
increase 4.3 percent over the next 12 months to $3,461, while Brooklyn's median rent will increase only 2.9
percent to $3,016. Manhattan's Downtown submarket is expected to
have the most growth, increasing 5.4 percent. The North Brooklyn submarket is forecasted to have
the least growth, rising only 1 percent.
The complete StreetEasy Market Reports for Manhattan and Brooklyn with additional analysis,
neighborhood data and graphics can be viewed at
streeteasy.com/blog/market-reports.
Region
|
August 2016
StreetEasy
Rent
Index
|
Annual
Change
|
August 2016
Median
Rental Days on
Market
|
Manhattan
|
$3,320
|
2.9%
|
22
|
Downtown
|
$3,755
|
3.1%
|
22
|
Midtown
|
$3,441
|
3.2%
|
23.5
|
Upper West
Side
|
$3,203
|
2%
|
22
|
Upper East
Side
|
$2,802
|
3%
|
22
|
Upper
Manhattan
|
$2,387
|
2.6%
|
21
|
Brooklyn
|
$2,932
|
1.9%
|
23
|
North
Brooklyn
|
$3,174
|
0%
|
22
|
Northwest
Brooklyn
|
$3,092
|
3%
|
26
|
Prospect
Park
|
$2,884
|
2.9%
|
23
|
South
Brooklyn
|
$1,771
|
0%
|
22
|
East
Brooklyn
|
$2,544
|
5%
|
22
|
About StreetEasy:
StreetEasy is New York
City's leading local real estate marketplace on mobile and the
web, providing accurate and comprehensive for-sale and for-rent
listings from hundreds of real estate brokerages
throughout New York City and the
major NYC metropolitan area. StreetEasy adds layers of
proprietary data and useful search tools to help home shoppers and
real estate professionals navigate the complex real estate markets
within the five boroughs of New York City, as well
as Northern New Jersey and the Hamptons.
Launched in 2006, StreetEasy is based in the Flatiron
neighborhood of Manhattan. StreetEasy is owned and operated by
Zillow Group (NASDAQ: Z and ZG).
StreetEasy is a registered trademark of Zillow, Inc.
i The StreetEasy Market Reports are a monthly
overview of the Manhattan and
Brooklyn sales and rental markets.
Every three months, a quarterly analysis is published. The report
data is aggregated from public recorded sales and listings data
from real estate brokerages that provide comprehensive coverage of
Manhattan and Brooklyn, with most metrics dating back to
1995 in Manhattan and 2005 in
Brooklyn. The reports are compiled
by the StreetEasy Research team. For more information, visit
http://streeteasy.com/blog/market-reports/. StreetEasy tracks data
for all five boroughs within New York
City, but currently only produces reports for Manhattan and Brooklyn.
ii Median resale prices are measured by the StreetEasy
Price Indices. Also referred to as the StreetEasy Manhattan Price
Index (MPI) and StreetEasy Brooklyn Price Index (BPI), the metrics
are monthly indices that track changes in resale prices of condo,
co-op, and townhouse units. Each index uses a repeat-sales method
of comparing the sales prices of the same properties since
January 1995 in Manhattan and January
2005 in Brooklyn. Given
this methodology, each index accurately captures the change in home
prices by controlling for the varying composition of homes sold in
a given month. Data on sales of homes is sourced from the New York
City Department of Finance. Full methodology here:
http://streeteasy.com/blog/methodology-streeteasy-price-indices/
iii The Manhattan Price Forecast and the Brooklyn Price
Forecast predict the change in resale prices 12 months out from the
current reported period. Each forecast incorporates the Price Index
for each borough as well as a mix of fundamental market factors
including: historical recorded sales price, household income,
population, and taxes.
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SOURCE StreetEasy