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Rentals, Investing

Manhattan Rental Market’s Rising Landlord Concessions

February 13, 2014 | 11:44 pm | | Reports |

MSlandlordconcessions
[click to expand]

Today the market report covering the Manhattan/Brooklyn rental market for January 2014 that we prepare for Douglas Elliman was published. We’ve authored the Elliman Report series since 1994.

One of the trends we’ve observed has been the recent expansion of the use of concessions by landlords to keep vacancy low as evidenced in the above chart.

You can download this report and others, view charts in a variety of markets and build custom data tables. See the report press coverage here.

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[Plateauing or Rising] 10-2013 Manhattan/Brooklyn Rental Report

November 13, 2013 | 10:01 am | | Reports |

Douglas Elliman just published their Manhattan/Brooklyn rental report. This monthly report is part of an evolving market report series I’ve been writing for Douglas Elliman since 1994. We discontinued the quarterly rental report series but still present the information in our aggregate database.

MANHATTAN

  • Second consecutive year-over-year monthly decline in median rent since June 2011 as summer sales surge poached rental demand.
  • Landlord concessions remained nominal, accounting for only 3.7% of new rentals and an average of 1.2 months rental equivalent.
  • Despite slip in rents, the number of new rentals continued to rise sharply as tenants sought out greater affordability.
  • Vacancy rate remained near 3-year high, but still at historic norms.
  • Improving regional economy and higher mortgage rates will keep upward pressure on rental prices.

BROOKLYN
[North, Northwest Regions]

  • Median rent was 3rd highest in 6 years.
  • Other than last May, rents have not fallen in 2013.
  • New rental activity heavy as tenants continue seek out greater affordability.
  • Luxury rental prices outpacing price growth of the overall market.

Here’s an excerpt from the report:

MANHATTAN Median rental price for October fell 1.6% below the same month last year to $3,150. This decline was the second consecutive yearover- year drop, following the September drop that broke the 26 consecutive month record without a decline. Weaker pricing was the result of the sales surge over the summer that pulled demand from the rental market. However the use of landlord concessions remained limited, found in only 3.7% of all new rentals with an average rental equivalent of 1.2 months…

BROOKLYN The rental market continued to show growth with all price indicators above prior year levels. Other than last May, all monthly year-overyear rental price indicators have not declined in 2013. Median rental price rose 6.8% to $2,699 over the prior year quarter. Average rental price and average rental price per square foot posted 12.6% and 25.5% respectively gains over the same period…




The Elliman Report: 10-2013 Manhattan/Brooklyn Rentals [Miller Samuel]
The Elliman Report: 10-2013 Manhattan/Brooklyn Rentals [Douglas Elliman]
Miller Samuel Aggregate Database [Miller Samuel]
Chart Gallery (Brooklyn Monthly) [Miller Samuel]
Chart Gallery (Manhattan Monthly) [Miller Samuel]
Chart Gallery (Manhattan Quarterly) [Miller Samuel]


[Upside] 8-2013 Manhattan/Brooklyn Rental Report

September 12, 2013 | 11:28 am | | Charts |

Douglas Elliman just published their Manhattan/Brooklyn rental report. This monthly report is part of an evolving market report series I’ve been writing for Douglas Elliman since 1994. We discontinued the quarterly rental report series but still present the information in our aggregate database.

MANHATTAN

  • Rising interest rates, an improving economy and tight credit are placing upward pressure on rental prices.
  • Rents continued to show modest gains.
  • 26th consecutive month without a year-over-year decline in median rent.
  • Nominal use of concessions by landlords remain in place.
  • Rise in number of new rentals reflect resistance to rising rents at time of renewal.
  • Vacancy rate edged up from year ago levels as this year’s spring market demand pushed later into summer than last year.

BROOKLYN
[North, Northwest Regions]

  • Rents continue to rise faster in Brooklyn than Manhattan.
  • Highest median rental price in over five years.
  • After a brief respite in early summer, renewed resistance to rising rents as evidenced by jump in the number of new rentals.
  • Days on market and listing discount fell.
  • 2-bedrooms showed biggest year-over-year gain of all size categories.

Here’s an excerpt from the report:

MANHATTAN The Manhattan median rental price increased by 1.8% to $3,150 from the same month last year. The last time this metric posted a decline was in June 2011, resulting in an unprecedented 26-month run. The average rental price increased 7.8% to $3,860 over the same period. Concessions from landlords continue to be rare with only 2.5% of all new rentals having some form of rewards, averaging the equivalent of 1 month of free rent…

BROOKLYN All rental price indicators showed year-over-year gains. Median rental price increased by 4.6% to $2,850 from the same month last year, reaching record highs in over 5-year period. The year-over-year average gain of this price metric during this period was at 3.4%. Average rental price and average rental price per square foot both increased 3.6% and 6.9% respectively from the same period last year…




The Elliman Report: 8-2013 Manhattan/Brooklyn Rentals [Miller Samuel]
The Elliman Report: 8-2013 Manhattan/Brooklyn Rentals [Douglas Elliman]
Miller Samuel Aggregate Database [Miller Samuel]
Chart Gallery (Brooklyn Monthly) [Miller Samuel]
Chart Gallery (Manhattan Monthly) [Miller Samuel]
Chart Gallery (Manhattan Quarterly) [Miller Samuel]


Bloomberg Surveillence TV with Tom Keene, Sara Eisen and Adam Davidson

May 13, 2013 | 8:46 am | | Public |

Had a fun interview with Tom and Sara this morning on the always MUST watch/listen Bloomberg Surveillance. We talked housing, rentals, vacancy and inventory. An added bonus was the addition of Adam Davidson – co-founder and co-host of Planet Money as guest anchor. I’m a huge fan of his show. Even bought their t-shirt last week through Kickstarter.

More importantly, I’m still the mayor of the Bloomberg Cafeteria on FourSquare.

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[Still A Lot] 2-2013 Manhattan/Brooklyn Rental Report

March 13, 2013 | 10:18 am | | Reports |

Douglas Elliman published the Manhattan/Brooklyn rental report for February 2013. This monthly report is part of an evolving market report series I’ve been writing for Douglas Elliman since 1994. We discontinued the quarterly rental report series but still present the information in our aggregate database.

MANHATTAN

  • After 4 consecutive months of modest year-over-year gains in median rental price, February showed larger increases.
  • Days on market and listing discount weakened.
  • Vacancy rates unchanged after falling for 7 consecutive months.
  • Super-luxury market (top 5% began at $8,155) outpaced overall median rental price gains.
  • The sharp gains in the number of new rentals ended as landlords are more in sync with the market at time of lease renewal.

BROOKLYN
[North, Northwest Regions]

  • After a one month slowdown, the year-over-year rise in median rental price resumed it’s higher rate of growth.
  • Days on market contracted.
  • Larger apartments show largest rise in rental price indicators.
  • The economy slowly improving and credit remains tight, keeping upward pressure on rents.

Here’s an excerpt from the report:

MANHATTAN After four consecutive months at an average of 1.6% year-over-year price gains, median rent rose 4.7% from year ago levels to $3,190. Average rental price also expanded at a similar pace, rising 4.9% from prior year levels to $3,956. The number of new rentals declined 8.8% from prior year levels, marking the first drop since July 2012, as more modest rental price growth at the end of 2012 forced landlords to be more consistent with pricing at time of lease renewal…

BROOKLYN After last month’s more modest gains, the rental market resumed robust price growth in February. Median rent increased 7.2% from the same month last year to $2,590. The other price indicators showed larger gains over the same period…




The Elliman Report: 2-2013 Manhattan/Brooklyn Rentals [Miller Samuel]
The Elliman Report: 2-2013 Manhattan/Brooklyn Rentals [Douglas Elliman]
Miller Samuel Aggregate Database [Miller Samuel]
Chart Gallery (Brooklyn Monthly) [Miller Samuel]
Chart Gallery (Manhattan Monthly) [Miller Samuel]
Chart Gallery (Manhattan Quarterly) [Miller Samuel]


The 4Q12 Miami Housing Market Translated: Economics, Spanish & Portuguese

February 2, 2013 | 10:20 pm | | Reports |

South Florida-based Douglas Elliman has translated the 4Q 2012 Elliman Report: Miami Sales that I prepare (I only took high school French) to Spanish and Portuguese, reflective of the significant demand from South Americans.

Elliman Report: Miami Sales (Spanish) | Elliman Report: Miami Sales (Portuguese)

[click to open reports]


Elliman Report: Miami Sales (Spanish) 4Q 2012 [Douglas Elliman]
Elliman Report: Miami Sales (Portuguese) 4Q 2012 [Douglas Elliman]
Elliman Report: Miami Sales (English) 4Q 2012 [Douglas Elliman]


[Cool Your Jets] 12-2012 Manhattan/Brooklyn Rental Report

January 21, 2013 | 9:59 pm | | Reports |

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

MANHATTAN

  • The pace of rental price increases have slowed for 3rd consecutive month.
  • Falling mortgage rates are pulling more renters into the sales market.
  • Rents remain at high levels with pressure coming from low vacancy rate, tight credit and an improving economy.
  • Vacancy rate has fallen below year ago levels for 6th consecutive month.
  • New rentals up 20.5% from the prior year indicating continued tenant price resistance at time of lease renewal.
  • Luxury and Super-Luxury rental prices grew faster than overall market over the year.
  • Doorman prices up as non-doorman prices slipped.

BROOKLYN
[North, Northwest Regions]

  • Prices edged above year ago levels and remain elevated.
  • New rentals up 12.5% over last year’s levels as tenants continued to resist rising prices.
  • Days on market at third fast monthly rate in nearly 5 years.
  • Luxury market price trends were mixed.
  • 2-bedroom market had most overall improvement in price and activity.

Here’s an excerpt from the report:

MANHATTAN For the third consecutive month, the year-over-year pace of median rental price growth eased. Median rental price increased 0.8% from the prior year period to $3,150. Year-over-year gains in this metric for the prior three months were 10.2%, 1.6% and 1.4%. Compared to the same period last year, average rental price was up 10% at $3,973, while rental price per square foot was down 4.5% to $49.88…

BROOKLYN Median rental price increased 7.6% from the same month last year to $2,637. This rate marked the fourth highest level over the past 5 years; the three highest levels were all recorded in 2012. Compared to the same period last year, average rental price edged 5.6% to $2,880, while average rental price per square foot jumped 16.7% to $36.01…

I’m really behind schedule in uploading content to the site due to the heavy year end appraisal volume we are digging out of…but I’ll get it done soon. You will be able to 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: 12-2012 Manhattan Rentals [Miller Samuel]
The Elliman Report: 12-2012 Manhattan Rentals [Douglas Elliman]

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[In The Media] Manhattan Rental Market on NY1 News 1-11-13

January 11, 2013 | 11:12 am | | TV, Videos |


[click to play]

Jill Urban of NY1 News came by my office to talk about the state of the New York rental market – she did a great job conveying the state of the market.



The Elliman Report: 12-2012 Manhattan Rentals [Miller Samuel]
The Elliman Report: 12-2012 Manhattan Rentals [Douglas Elliman]

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[In The Media] Bloomberg TV’s Street Smart 11-14-2012

November 15, 2012 | 5:53 pm | | TV, Videos |

Had a good discussion with Adam Johnson and Alix Steel on the Manhattan/Brooklyn rental markets and how credit relates to it.

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[New, Improved, Expanded] 9-2012 Manhattan/Brooklyn Rental Report

October 20, 2012 | 3:00 pm | | Reports |

We created and published a new report on the Manhattan rental market for 9-2012.  This is part of an evolving market report series I’ve been writing for Douglas Elliman since 1994.

New Features

-Includes both Manhattan and Brooklyn (North/Northwest)
-Monthly release.
-Vacancy Rates (Manhattan only)
-Breakdown of the four Manhattan regions by number of bedrooms
-We’ve added a “Super-Luxury” rental category for the top 5% of Manhattan.

-Both reports are a work in progress – we’ll continue to lavish attention on new features over the coming months.

Key Points

-Rental market remains tight as credit keeps some out of purchase market and supply isn’t elastic enough to meet demand.
-Strong employment growth is fueling rental market, which responds more quickly to job gains.

MANHATTAN

  • Prices continued to rise, up 10.2% based on face rent and 8% based on net effective rent year-over-year.
  • Only 2% of listings had a landlord concession, down from 8.6% last year.
  • Vacancy rate fell to 1.85% from 2.62% in year ago quarter, consistent with rising rents. Uptown with lowest rate, West Side with highest rate.
  • New rentals up 54.5% from the prior year suggesting market resistance at time of lease renewal.
  • Listing inventory slipped 2.6% from year ago levels.
  • Doorman prices up as non-doorman prices remained stable.

BROOKLYN
[North, Northwest Regions]

  • Prices slipped 2.1% below year ago levels but remain elevated.
  • New rentals up 6.5% over last year’s levels.
  • Days on market at third fast monthly rate in nearly 5 years.
  • 1-Bedrooms showed largest median sales price gain at 10.5% YOY.

Here’s an excerpt from the report:

…Two significant drivers of rental demand over the past year have been the tight lending conditions and the improving local economy, namely employment levels. Perhaps the most consequential factor to date has been the tight mortgage underwriting standards. Banks remain risk-adverse, and lending standards have yet to ease since the fall of Lehman Brothers. This has held many would-be buyers in the rental market, especially with mortgage rates continuing to fall and reaching record-low levels throughout most of 2012. However, falling mortgage rates have made lenders even more adverse to risk. This lower tenant mobility has tightened the conditions of the rental market, laying the pressure on rents…

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 will be phasing in monthly charts to our rental chart gallery soon.




The Elliman Report: 9-2012 Manhattan Rentals [Miller Samuel]
The Elliman Report: 9-2012 Manhattan Rentals [Prudential Douglas Elliman]

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[In The Media] Bloomberg TV’s “Taking Stock” with Pimm Fox 7-17-12

July 18, 2012 | 10:23 am | | TV, Videos |

Had a nice conversation about the rental market with Bloomberg’s Pimm Fox, one of the nicest people you’ll ever meet, on his show Taking Stock.

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[In The Media] NY1 TV Foreign Interest Returns To NYC Real Estate

January 18, 2010 | 7:19 pm | Public |


[click to play]

Shazia Khan of NY1 does a nice local segment on foreign buyers (no pun intended). You can’t really tell, but due to tripod issues, the video camera is sitting on a pile of my books.

Admittedly, NYC always over hypes participation by foreign buyers (remember stories of Irish carpenters buying Manhattan condos?) but its worth paying attention to.

The dollar remains pretty weak compared to the Euro.


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