Despite a slowdown in the growth of rents, high summer demand pushed rents across Manhattan, Brooklyn and Queens to record highs in July. Queens median rents rose the most across the three boroughs, up 1.3% from last July to $1,996, according to the July 2017 StreetEasy Market Reports.
Brooklyn rents rose at roughly the same pace as Queens, up 1%t to $2,453, while rents in Manhattan grew just 0.2% over the prior year, but also hit a record high of $2,980. Queens offered the smallest share of rental discounts: Only 26% of rentals in Queens received a discount in July, compared to 32% in Brooklyn and 36% in Manhattan. This is down from a high of nearly 50% last fall in Brooklyn and Manhattan, and down from a 40% high in November in Queens.
“A mix of rising rents and fewer discounts or concessions from landlords shows signs of stabilization after a weaker rental market last year,” said StreetEasy Senior Economist Grant Long. “While welcome news for landlords, renters planning on signing a new lease before summer ends should expect limited negotiating power and will need to act fast. This is especially true in the city’s least expensive neighborhoods in Brooklyn, Queens, and Upper Manhattan; all of which have risen dramatically in popularity over the past year.”
July 2017 Key Findings – Manhattan
- Manhattan rents rose to an all-time high. Median asking rents rose 0.2% since July 2016 to $2,980, the highest on StreetEasy record.
- Upper Manhattan rents increased the most. Manhattan’s least expensive submarket experienced the largest price increases, with asking rents rising by 2.2%.
- Rents fell in Midtown and the Upper West Side. Despite growth elsewhere in Manhattan, asking rents fell by 0.4% in both Midtown and the Upper West Side to $3,060 and $3,048, respectively.
- Rental discounts hit their lowest levels since 2015. 36% of rental listings were discounted in July, marking the lowest share of discounts seen since August 2015.
- Manhattan’s sales stagnated, except at the bottom. Median resale prices were essentially unchanged year-over-year at $1,160,295. Prices for the least expensive homes rose 5.8% since last year, while home prices in the luxury segment fell 3.7%.
July 2017 Key Findings – Brooklyn
- Brooklyn rents hit a record high. Asking rents rose 1% to a record high of $2,453, the highest on StreetEasy record.
- Share of rentals with a discount fell. 32% of rentals offered a discount in July 2017, down from 38% in July 2016 and peak levels in November 2016 (46%).
- South and East Brooklyn rents grew the most. Rents were up 1.8% in South Brooklyn and 1.5% in East Brooklyn compared to this time last year.
- Resale prices rose across Brooklyn. Median resale prices in Brooklyn rose 4% since last year to $758,349.
July 2017 Key Findings – Queens
- Rents in Queens reached an all-time high. Median asking rents rose 1.3% year-over-year to $1,996, the highest on StreetEasy record.
- A quarter of rentals were discounted in July. The share of rentals that were discounted fell to 26%, down from a high of 40% in November 2016.
- Northeastern Queens heats up. Median asking rents in Northeastern Queens grew the most of any Queens submarket, up 4% since last year to $1,931.
- Queens resale price growth outpaced Brooklyn and Manhattan. The median resale price in Queens rose 7.8% to $500,289.
- Median resale prices rose the least in the Northwest Queens. Northwest Queens’ median resale price rose 3% year-over-year to $752,455, the highest price level of any submarket in Queens.
