December Rentals Reflect Some Stability in New York
- Jan 08, 2015
New York—According to real estate brokerage MNS’s December rental market reports for Manhattan, Brooklyn and Queens, relative market stability is reflected with few surprises and only slight changes due to inventory levels.
The report shows that in Manhattan changes in rental prices and inventory levels have been minimal with the largest percentage increases were amongst all sized doorman units in East Village, driving an overall monthly change of 13.6 percent. The largest percentage decreases were seen in one-bedroom non-doorman units in Soho and Tribeca, where prices decreased 15.6 percent and 24.4 percent, respectively. Overall rental rates in Manhattan increased in December 2014 by approximately 0.29 percent to $3,836 from $3,824 in November 2014.
Rental rates in the Brooklyn market dropped 0.39 percent from $2,677.19 in November to $2,666.88 in December, according to the Brooklyn report. Despite slight downturns in monthly average rents, the overall Brooklyn market continues to show a steady increase on an annual basis.
The largest annual upward and downward shifts in rent prices (among material sample sizes) were seen in Boerum Hill and Williamsburg with average rent increasing 15.7 percent in Boerum Hill and decreasing by 7.4 percent in Williamsburg.
Average rents throughout Queens show decreases from 0.87 percent from $2,118.15 in November 2014 to $2,099.63 in December 2014. Although in high demand, Astoria and Long Island City continued to see large amounts of listings resulting in a decrease for average prices. Inventory is tight, especially among lower priced units, in Flushing, Rego Park, Jackson Heights and Ridgewood. Rental rates range from $1,744 for a studio to $2,540 for a two-bedroom unit.
MNS’s reports show relative market stability for the three boroughs with few surprises. Brooklyn’s Park Slope and Williamsburg continue to be in demand. The market stability of Manhattan is fairly normal for this time of year, although look for changes in the near future. Overall pricing levels for Queens are expected to increase with new projects planned in the coming months.