NEW YORK, May 24, 2018 /PRNewswire/ -- Ahead of peak
rental season, apartment shoppers can expect to see slightly higher
rent prices than last year, particularly in areas with lower-priced
homes, according to StreetEasy's April
2018 Market Reportsi. However, those searching
for rentals at higher price points and in areas of the city with
large quantities of new development are likely to have greater
negotiating power.
In Manhattan, rents increased
in all submarkets, and rose 0.9 percent borough-wide to
$3,159 per month, according to the
StreetEasy Manhattan Rent Indexii. In Upper Manhattan,
where rents are the lowest of any submarket in the borough, rents
increased the most: up 3.0 percent to an all-time high of
$2,313.
The StreetEasy Rent Index in Brooklyn also rose year-over-year and is up
1.3 percent (or $33) to $2,559. North
Brooklyn was the only submarket where rents did not
increase; prices there remained unchanged since last year. In
Queens, rents declined for the
seventh straight month and are down one percent (or $18) since last year to $2,109, driven in large part by large volumes of
new construction in Long Island
City and Flushing.
"With the city's economic growth continuing to outpace national
growth, demand for affordable homes is pushing up rents at a time
when many New Yorkers are thinking about whether to sign new leases
or renew their current ones," said StreetEasy Senior Economist
Grant Long. "Even with large amounts
of new rental construction, renters should expect rising rents in
some of the most affordable pockets of the city, though will still
be in a better position amid a generally weak market relative to
recent years. Moreover, landlords in parts of the city like
Downtown Brooklyn, Long Island City, and Midtown are open to
negotiation and willing to offer concessions and free perks."
See below for additional sales and rental market trends across
Manhattan, Brooklyn and Queens.
April 2018 Key Findings —
Manhattan
- Rental discounts rose the most in Midtown. Eighteen
percent of apartments in Midtown are offering discounts, an
increase of 3.0 percent year-over-year. Rent cuts fell in three
submarkets: dropping 1.8 percent in the Upper West Side, 0.4
percent in the Upper East Side and 1.6 percent in Downtown Manhattan.
- Manhattan home prices
rose. The StreetEasy Manhattan Price Indexiii
increased 1.0 percent to $1,173,435.
After a period of falling prices, the Upper East Side StreetEasy
Price Index increased 3.8 percent since last year to $1,059,064.
- Manhattan homes offered the
most price cuts. In the borough, 15.5 percent of homes
had their prices cut, a 4.6 percent increase over last year.
- Sales inventory rose by double digits. Inventory grew
12.4 percent since last year. The Upper East Side saw the biggest
increase: up 14 percent year-over-year.
- Manhattan homes spent
longer on the market. The median days on market increased to 61
days in Manhattan – up three days
since last year. Homes in Downtown
Manhattan spent 67 days on the market – up 12 days since
last year. Homes in the Upper West Side spent three less days on
the market, as buyers took advantage of previously falling prices
and discounts.
April 2018 Key Findings —
Brooklyn
- Rents stagnated and discounts rose in North Brooklyn. North Brooklyn was the only submarket that
didn't see a change in rent prices since last year. The StreetEasy
North Brooklyn Rent Index remained unchanged since last year at
$3,041. Twenty-two percent of
rentals in North Brooklyn were
discounted, a 4.1 percent increase over last year.
- Prospect Park rentals offered the fewest discounts and
tightest inventory. Rents in Prospect Park grew by 1.3
percent since last year to $2,635.
Just 12 percent of rentals in Prospect Park had their prices cut –
a 2.6 percent annual decrease. Rental inventory dropped the most of
any submarket: down 25.7 percent year-over-year.
- Sales prices stagnated. The StreetEasy Brooklyn Price
Index remained unchanged since last year at $741,705.
- Sales inventory at an all-time high. Inventory increased
22 percent since last year to a new high.
- Price cuts are up. Compared to last year, 10.8 percent
of homes in Brooklyn had their
price cut, which is a three percent increase year-over-year.
Northwest Brooklyn saw the highest
share of price cuts at 13.3 percent.
- Prices rose in North
Brooklyn, despite L train shutdown. Prices rose 12.4
percent in North Brooklyn,
reaching $1,139,559 and making it the
borough's most expensive submarket. Prices in Northwest Brooklyn fell the most in the
borough: down 9.1 percent to $1,097,873.
April 2018 Key Findings —
Queens
- Rents dropped across Queens
but rose in Central Queens.
Rents in Queens dropped 1.0
percent year-over-year to $2,109. In
Central Queens, rents rose 2.0
percent over last year to $2,082.
- Sales prices rose across Queens. The StreetEasy Queens Price Index
reached $526,113, a 7.0 percent
increase over last year. Prices grew the most in Central Queens: up 8.4 percent to $520,353.
- Sales inventory rose across the borough, reaching a new high
in Northwest Queens. The
amount of homes on the market increased in Queens by 49
percent year-over-year. Central
Queens inventory rose by 45.2 percent, while Northwest Queens inventory rose 33.5 percent –
reaching a new high.
- The number of homes offering price cuts rose ahead of home
shopping season. Nine percent of homes for sale in Queens offered price cuts – a 3.0 percent
increase over last year. All submarkets experienced an increase in
discounts, with Northwest Queens
homes offering the most at 16.2 percent, a 7.3 percent increase
year-over-year.
The complete StreetEasy Market Reports for Manhattan, Brooklyn and Queens, with additional neighborhood data and
graphics, can be viewed at
streeteasy.com/blog/research/market-reports/. Definitions of
StreetEasy's metrics and monthly data from each report can be
downloaded at streeteasy.com/blog/download-data/.
About StreetEasy
StreetEasy is New York
City's leading local real estate marketplace on mobile and the
web, providing accurate and comprehensive for-sale and for-rent
listings from hundreds of real estate brokerages
throughout New York City and the NYC metropolitan
area. StreetEasy adds layers of proprietary data and useful search
tools to help home shoppers and real estate professionals navigate
the complex real estate markets within the five boroughs
of New York City, as well as Northern New Jersey.
Launched in 2006, StreetEasy is based in the Flatiron
neighborhood of Manhattan. StreetEasy is owned and operated by
Zillow Group (NASDAQ: Z and ZG).
StreetEasy is a registered trademark of Zillow, Inc.
i The StreetEasy Market Reports are a monthly
overview of the Manhattan and Brooklyn sales
and rental markets. Every three months, a quarterly analysis is
published. The report data is aggregated from public recorded sales
and listings data from real estate brokerages that provide
comprehensive coverage of Manhattan and Brooklyn,
with most metrics dating back to 1995 in Manhattan and
2005 in Brooklyn. The reports are compiled by the StreetEasy
Research team. For more information,
visit http://streeteasy.com/blog/market-reports/. StreetEasy
tracks data for all five boroughs within New York City, but
currently only produces reports
for Manhattan and Brooklyn.
ii The StreetEasy Rent Indices utilize a similar
methodology to the StreetEasy Price Indices and include only valid
and verified listings from StreetEasy. By employing a
repeat-rentals approach, the indices emphasize the changes in rent
on individual properties and not between different sets of
properties. Full methodology here:
http://streeteasy.com/blog/methodology-price-and-rent-indices/
iii The StreetEasy Price Indices track changes in resale
prices of condo, co-op, and townhouse units. Each index uses a
repeat-sales method of comparing the sales prices of the same
properties since January 1995 in
Manhattan and January 2007 in Brooklyn and Queens. Given this methodology, each index
accurately captures the change in home prices by controlling for
the varying composition of homes sold in a given month. Levels of
the StreetEasy Price Indices reflect average values of homes on the
market. Data on the sale of homes is sourced from the New York City
Department of Finance. Full methodology here:
http://streeteasy.com/blog/methodology-price-and-rent-indices/
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SOURCE StreetEasy