New York landlords are holding the upper hand as the market enters its busy summer season, according to the latest report from Citi Habitats.
The report found that while the Manhattan and Brooklyn markets are still comparatively tenant-friendly, a slight shift in market conditions was recorded to the landlords’ benefit.
In April, rents declined by a negligible amount for studio and two-bedroom apartments, while they increased one percent for one-and three-bedrooms.
The average Manhattan apartment rented for $3,512, $6 more than it did in March. Year-over-year, new tenants paid on average $28 more last month than they did in April 2016, when the average Manhattan rent was $3,434.
In April, the borough-wide vacancy rate fell to 1.78 percent from March’s rate of 1.89 percent. The rate is also lower when compared a year prior when vacancy stood at 1.81 percent.
Citi Habitats reported that 28 percent of rental transactions brokered by the firmʼs agents offered a free month’s rent and/or payment of the broker fee to entice new tenants in April, down slightly from 35 percent in March but up from 19 percent at this time last year.
“In April, we noted three positive signs for landlords,” explained Gary Malin, president of Citi Habitats. “Although their rise slowed when compared March, rents continued to hold steady – and were up slightly overall. Meanwhile, the Manhattan vacancy rate declined to the lowest level since August of last year, while the percentage of leases that offered a concession also fell.
“We are beginning to enter a traditionally busy time of year, so it will be interesting to see if market conditions continue to shift as we enter summer.”
The April 2017 report found that the average monthly rental price for a Manhattan studio was $2,342. For one-bedroom homes, it was $3,154; two-bedrooms $4,127 and the average three-bedroom apartment rented for $5,354.
Brooklyn studio apartments (in the 14 neighborhoods studied) rented for $2,267 per month on average.
For Brooklyn one-bedrooms, the average rent was $2,851, while rents for two- and three-bedrooms clocked in at $3,732 and $5,049, respectively.
The most expensive Manhattan neighborhood for renters in April 2017 was SoHo/TriBeCa, with a median rent of $5,997. Gramercy/Flatiron was the second-priciest area with a median rent of $4,535.
For Brooklyn, DUMBO was the most expensive neighborhood in April, with a median rent of $4,675, followed by Downtown Brooklyn, where the median rent was $3,595.
Manhattan rents were lowest in April 2017 in Washington Heights, with a median rent of $2,275. When examining neighborhoods below 96th Street, The Lower East Side was the least expensive neighborhood for renters with a median rent of $3,135.
Bedford-Stuyvesant, with a median April rent of $2,450, was the least-expensive Brooklyn neighborhood tracked in our report – followed by Bushwick, where the median rent was $2,590.
With a vacancy rate of 1.36 percent, Gramercy was the Manhattan area with least inventory in April 2017, followed by SoHo/TriBeCa at 1.42 percent.
On the other end of the spectrum, the vacancy rate was highest in the West Village. Last month, 2.18 percent of rental units in the neighborhood were vacant.
Chelsea had second-highest percentage of available homes, with a vacancy rate of 2.13 percent.