For the 25th month in a row, the Manhattan market has gone without a year-over-year decline in rent, according to the July rental market report released by Elliman this morning. It's just one of several signs of a stabilizing market: median rents are up 0.9 percent year over year (to $3,034/month, including concessions), and the vacancy rate is down to 1.94 percent (from 2.23 percent a year ago). (Citi Habitats has that vacancy rate even lower, at 1.28 percent, with an average Manhattan rent of $3,442/month.)
The number of new rentals has dropped, too, by 7.7 percent, an indication that landlords are pursuing less aggressive rents in lease renewals and that tenants are more willing to pay rent increases instead of looking around for cheaper options. In other words, everyone seems more resigned to how things are. "I'm not sure what will change in the near term for either market," says Jonathan Miller, our go-to graph guru, who prepares the report for Elliman. "I don't see much relief in housing costs for New Yorkers on the sale or rental side." Even if Manhattan rents are leveling out, it will be "at this very high level," he explains.
Brooklyn is, in terms of rental market trends, where Manhattan was about a year ago. Median rental prices are up 5.1 percent, to $2,675/month, and the number of new rentals went up 3.7 percent. If Brooklyn continues to follow in Manhattan's footsteps, Brooklyn renters can expect more of the same, Miller says, for at least another six months.
Here are the Brooklyn numbers: