Manhattan bargain hunters drive 94% jump in apartment leases

New York

MANHATTAN apartment leases almost doubled last month, a sign that sliding rents and landlord freebies are drawing tenants to New York's costliest borough.

The number of new deals jumped 94 per cent from a year earlier to 5,459, the biggest annual increase since April 2011, appraiser Miller Samuel Inc and brokerage Douglas Elliman Real Estate said in a report on Thursday.

About 54 per cent of those leases came with move-in incentives such as free months or payment of broker fees. With the value of those perks factored in, the median rent tumbled 17 per cent to US$2,800, the firms said.

Manhattan renters are on the hunt for bargains - and they're finding them. Landlords are working hard to fill apartments in a city that's largely been shut down since March, when the Covid-19 pandemic stifled its famed nightlife and closed office towers, sending workers scattering to remote locales.

While the jump in leases may signal that Manhattan hasn't lost its attraction, it failed to put a dent in the pileup of available apartments. The number of listings was up 172 per cent from a year earlier to 13,718, according to the report.

The vacancy rate was 5.52 per cent. While that's down from November's record high of 6.14 per cent, it compares with just 1.81 per cent for December 2019.

"New leasing has surged because of a new-found affordability for renters," Jonathan Miller, president of Miller Samuel, said. "The mistake here is to assume that this is a sign of imminent recovery." BLOOMBERG