[Rising But Easing] 11-2012 Manhattan/Brooklyn Rental Report

Posted by Jonathan Miller - Wednesday, December 12, 2012, 8:26 AM

This report is part of an evolving market report series I’ve been writing for Douglas Elliman since 1994.

MANHATTAN

• Competition from the sales market, which has enjoyed a sustained period of record low mortgage rates, may have begun to temper the pace of rising rent levels
  
• Rents remain high and still edging higher but pace of growth slowed this month as indicated by rents and the surge in new rental activity
  

• Key drivers of rental market remain tight credit on the sales side and rising employment in the city
  

• Rents increased: Median rental price edged 1.4% higher to $3,195 from year ago levels, the lowest year-over-year percent median rental price change in more than a year
  

• Luxury and Super-Luxury rental increases outpaced the overall market
  
• New rentals surged 41% as tenants resisted rising lease renewal rates
  
• Vacancy rates continued to fall. November ’12 was 1.59% versus 2.32% in November ’11
  

BROOKLYN
[North, Northwest Regions]

• Rents increase: double digit growth from year ago levels. Median rental price increased 10.1% to $2,698 from year ago levels
  
• Luxury rental increase consistent with the the overall market
  
• New rentals surged 59% as tenants resisted rising rental renewal rates
  
• Tight credit conditions and improving employment continue to keep rents at elevated levels
  

Here’s an excerpt from the report:

MANHATTAN Median rental price remained essentially unchanged from the prior month and edged 1.4% higher than prior year levels to $3,195. This was the lowest year-overyear percent median rental price change since 0% in September 2011. Average rental price expanded 5.4% from the same period last year, while rental price per square foot fell 2.3%. Competition from the sales market, which has enjoyed a sustained period of record low mortgage rates, may have begun to temper the pace of rising rent levels…

BROOKLYN Median rental price increased 10.1% from the same period last year to $2,698, the highest November showing since the credit crunch began. Rental price per square foot and average rental price increased 10.3% and 11.2% respectively over the same period…

You can build your own custom data tables on the Manhattan rental market using quarterly data – our new monthly format will be available online shortly and we will be phasing in monthly charts to our rental chart gallery soon.

The Elliman Report: 11-2012 Manhattan Rentals [Miller Samuel]
The Elliman Report: 11-2012 Manhattan Rentals [Douglas Elliman]