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Supply of Condos for Rent Driving Down Prices

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About 37 percent of developer sales in 2015 went rental.

So many people – usually investors from out of town – are buying condominiums in Manhattan with no intention of living in them, and are then putting them up for rent. That’s been driving down the price of luxury rentals, Bloomberg Business reported. There were 1,522 developer sales in new buildings in the borough last year and 559 of them, about 37 percent, were later listed for rent, according to StreetEasy. That has driven the median luxury rent down 4.2. percent from February of 2015 to February of 2016.

Some examples of buildings where many sales have gone rental are 50 United Nations Plaza (44 percent), 93 Worth (56 percent), and the Baccarat Hotel & Residences (43 percent).

At One Riverside Park, an 11th floor home is seeking $22,995, but the identical home on the 12th floor is seeking $20,000, but that’s down from $25,000 in November. While there is a drop in prices, with more and more people buying units and then listing them for rent, there will be many that are very expensive - up to $100,000 a month.

Manhattan Luxury Rents Slide as Condo Buyers Seek Tenants [Bloomberg]

Over a third of Manhattan new development condos sold in 2015 were later listed for rent: StreetEasy [TRD]

Previewing the Penthouses of Tribeca's ODA-Designed 93 Worth [Curbed]