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MARKET REPORTS

Manhattan Rents Rise Faster Than Ever Before

Saturday, October 31, 2015, by Evan Bindelglass

[Photo by Ianqui Doodle/Flickr]

Ready to be depressed? StreetEasy released a new Q3 report on home prices in Manhattan and Brooklyn (for both sales and rentals) and the data points to one thing: the rent in New York City remains too damn high. According to the report, the third quarter of 2015 saw the biggest year-to-year jump in Manhattan rent since StreetEasy started collecting data seven years ago. The median asking price for rent in Manhattan jumped 9.5 percent to $3,339. In Brooklyn, the price went up 1.5 percent to $2,600.

The jump in Manhattan rent was, not surprisingly, driven by one-bedroom units, which saw a 10.7 percent increase to $3,271, while studios went up 6.5 percent and two-bedrooms went up 9.7 percent. The price of three-bedrooms actually went down 3.6 percent.

While Brooklyn saw slower growth than Manhattan, four of its neighborhoods were in the top five with Canarsie seeing a whopping 33.3 percent increase. The next three are Bronwnsville (28.8 percent), Northeast Flatbush (26.3 percent), and Gowanus (23.1 percent). Several neighborhoods saw a decrease in prices: The five biggest were Upper Carnegie Hill in Manhattan (25.2 percent), Prospect Lefferts Gardens in Brooklyn (15 percent), Prospect Park South in Brooklyn (11.9 percent), Central Park South in Manhattan (3.4 percent), and Bath Beach in Brooklyn (2.9 percent).

When it comes to inventory, it's a tale of two cities. Manhattan actually saw a 0.5 percent decrease in inventory. Brooklyn, meanwhile, saw a 10.2 percent increase.

The report didn't just look at rentals. It also looked at home sales and the median Manhattan resale price was expected to be only $10,000 shy of $1 million in October. Brooklyn's growth, however, exceeded Manhattan's, with prices rising nine percent to a record high of $545,139.
· Q3 2015 Market Report [StreetEasy]

MARKET REPORTS

RENT

STREETEASY

THE RENT IS TOO DAMN HIGH

9 COMMENTS

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COMMENTS (9 EXTANT)

Blooming Sky 74

If you see the new development taking place Downtown, in addition to all the new retail, we'll keep seeing some massive uptick there within the next few years.

#1. 10/31/15 01:34 PM

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Views4Days 2284

This is not surprising at all. The demand to live in Manhattan is far, far greater than the supply of new units. Add in very expensive land prices that don't allow developers to build anything but ultra-luxury new construction developments where if you're very lucky you might find one or two units for under $1 million in a handful of developments with a majority of new developments starting their prices above $1 million and it's easy to see how this is just the start of a huge increase in median and average prices.

We have nearly $12 billion worth of units that are currently in contract waiting to close:

http://therealdeal.com/blog/2015/10/07/the-nyc-developments-with-the-most-units-under-contract/

432 Park Avenue should start closings by end of this year and the cheapest unit there was $7 million.

#2. 10/31/15 05:59 PM

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AUTISTIC?$!.589

@Views4Days: given the current state of treasonous real estate monopoly corruption of course this is par for the course, our constitution protects owner occupied property rights only, our states treasonously ignore america's constitutional rights, enforce america's constitution's rights which highlight owner occupied property only and all American citizens will have homes and stability?!$.

#3. 11/01/15 12:28 PM

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bridges 1318

What about the Cap Rate - - - how has that changed over the last few years in NYC ? by borough ?

#4. 11/01/15 03:41 PM

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Views4Days 2284

@bridges: Cap rates have fallen significantly over the past 5 years and are currently extremely low, which means prices are extremely high. We use the basic equation Value = NOI/Cap Rate. The lower the cap rate, the higher the value and vice versa.

“You take New York City, just to keep it simple,” says Michael Weiser, president of New York-based GFI Realty Services. “Every day you see a new high in pricing, and a new low in cap rates. Almost every day you come to work, you see something that’s absolutely shocking.”

http://www.multifamilyexecutive.com/business-finance/cap-rate-limbo-how-low-can-they-go_o

#5. 11/01/15 07:12 PM

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Sh!tMyTenantsSay 55

LOL at using a pic with a Steve Croman "apts for rent" sign!

#6. 11/02/15 10:19 AM Follow @SMTSay

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Manhattan4Ever 892

$3300 to rent a 1 bed on the island....wow!

#7. 11/02/15 10:28 AM

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montgomery 1515

@bridges:

The multiple is roughly 10-20 times in Manhattan for a building , and 8-14 times in Brooklyn and Queens

#8. 11/02/15 03:51 PM

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indaburbs 4

Do you think Mayor De Boo Boo can finally come to the realization that any mayor of the City of New York can do very little to lessen income inequality in the City of New York? Never mind. The answer is no, he cannot. Two more years to go, folks.

#9. 11/02/15 10:25 PM

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