It's the same old story: rents rose again in August, reaching a "boiling point" in Manhattan and setting new records in Brooklyn. If you'd rather not have your Thursday ruined, take a look at these adorable pet-photobombed listings, but if you're a masochist who needs to know the details, read on. According to the Elliman report, prepared by appraiser Jonathan Miller, Manhattan rents inched higher for the 18th consecutive month, and they are now "skirting with records." The median is now $3,400, a 7.1 percent increase from last year, and the third highest on record. The average is up 2.8 percent to $4,048 (MNS puts the average at $3,963 and Citi Habitats puts it at $3,507). What's particularly depressing about this is that Miller says that the lower end of the market, i.e. non-doorman buildings, have seen rents rise faster than the higher end. And the "luxury" median rental price actually fell. Oh, the irony.
The MNS report found that, compared to last year, average Harlem rents are up the mosta whopping 20 percentto $2,828, and new development is to
thank blame. Hmm, isn't there a name for this phenomenon? Midtown East rents declined the most dropping 11.6 percent to $3,497. Overall, Citi Habitats says the situation in Manhattan is an a "boiling point. "The market remains in an uneasy equilibrium, with asking rents just about to their breaking point, while vacancy rates remain at higher levels than in summers past."
In Brooklyn, the situation is no better. In fact, you could say it's worse. The Elliman report, which looks at the data from the north, northwest, and east regions, puts the median rent at a record-setting $3,112, a 10.8 percent increase from last year. This is the first time the Brooklyn median has surpassed the $3,000 mark, so whoop-dee-do. The average rent also set a new record, peaking at $3,421. The MNS report put the average at $2,749.
On a monthly basis, Crown Heights saw the biggest changes, with studio rents jumping more than 19 percent, but compared to last year, rents in the neighborhood decreased by more than 11 percent. This is because inventory in the neighborhood more than doubled; the same thing happened in Bushwick and Park Slope.
Rents were more stable in Queens, where the median price dropped a smidgen to $2,750, according to Elliman, and the average rent rose slightly to $3,026. MNS found the average to be significantly lower, coming in at $2,148. Unsurprisingly, the most expensive rentals were in Long Island City, and the cheapest were in Flushing.
But what everyone really wants to know: is there hope for the near future? Will this torture stop? Nope. "No tenant relief anytime soon," says Miller, "as we continue to have a mismatch between new development and demand as well as a strong economy and job growth."
· August - 2015 Manhattan, Brooklyn and Queens Rentals [Elliman]
· Market Reports [Citi Habitats]
· All Rental Market Reports [Curbed]