Manhattan apartment rents rise after three months of declines

IN New York City, Manhattan apartment rents climbed slightly in November after three months of declines. But the market is not returning to the hypercompetitive heights seen in the summer.

The median rent rose 2.1 per cent to US$4,095 from the level recorded in October. This was the third-highest level recorded by appraiser Miller Samuel and brokerage Douglas Elliman Real Estate. Yet there were also indications that demand was not particularly strong. These included a rising share of new leases signed with concessions and a higher vacancy rate.

Jonathan Miller, president of Miller Samuel, said: “The market is largely moving sideways. We’re having some ups and downs from month to month, but not any big moves in either direction.” 

He added that landlords and renters across New York City were in a holding pattern, waiting to see if the US would dip into a recession and if unemployment would increase. In the meantime, leasing has slowed. New signings were down almost 39 per cent from October figures – the largest month-over-month drop since April 2020.

In the current climate, apartment owners are testing whether they can keep raising their prices while renters are trying to negotiate deals. Even with slightly higher prices, “there’s more momentum shifting towards the tenant” rather than the landlord, said Miller.

For months, renters were getting discounts averaging less than 1 per cent off the original list price, and sometimes paying roughly that much over the asking price. But in November, the typical listing discount rose to 3 per cent.

SEE ALSO

These are not the most expensive cities…unless you are an expat

Is homeownership slipping even further out of reach for New Yorkers?

New York City developer hunts for homebuyers squeezed by borrowing costs

As Singapore rents soar, expats in Hong Kong bag bargains

More

Asean Intelligence

Get insights into businesses across South-east Asia

Get the free report

Now, landlords are more frequently agreeing to give renters breaks, such as free months without cutting face rents. Miller Samuel and Douglas Elliman Real Estate said that about 16 per cent of November’s new leases included concessions, up from 13 per cent in October and 11 per cent in September.

Manhattan’s vacancy rate last month was 2.42 per cent, up from 2.35 per cent in October. It had been below 2 per cent for much of the year. BLOOMBERG