Reports: Manhattan rental market harsh at entry-level

Manhattan rents are rising as the weather gets colder this year, according to real estate market reports released Thursday.

But the entry-level market has a harsher climate than the luxury, according to new data.

According to a Citi Habitats report, the average Manhattan rent overall was $3,498 in October, up from $3,487 in September and $3,491 in October 2015.

Similarly, a report from Douglas Elliman found that the average rent in Manhattan was $4,223 in October, up from $4,117 in September and $4,096 in October 2015.

These increases were driven by the low-end of the market, noted Jonathan Miller, CEO of the real estate appraisal firm Miller Samuel Inc., which compiles Douglas Elliman’s market reports.

According to the firm, the entry tier of the market (the bottom 30 percent) saw a 4 percent rise in median rent between October 2015 and October 2016 — from $2,260 to $2,350 — while the upper tier (the higher 30%, below the top 10 percent) remained unchanged.

Meanwhile, Citi Habitats found that the average rent for one-bedrooms in walk-ups rose 12 percent, from $2,452 in October 2015 to $2,752 last month, while the average rent for one-bedrooms in luxury doorman buildings only rose 2 percent, from $4,512 in October 2015 to $4,604 last month.

In addition to facing greater rent increases, entry-level renters were less likely to see concessions, such as a free month of rent or waived broker fee, than those in the luxury market.

According to data Miller provided to amNewYork, 16.6 percent of new leases in non-doorman buildings came with concessions in October, compared with 31.4 percent of new leases in doorman buildings.

“So essentially, the upper half [of the market] has basically double the concession rate,” Miller said. Overall, “the market is softer at the top than it is everywhere else.”


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