New York City rental markets showed strong performance in June, driven in part by a flurry of luxury activity, an indication that as Covid-19 infection rates continue to dwindle, the city’s wealthy residents are returning in droves.
While prices were largely flat—Manhattan’s luxury rental market saw median prices decline by 2.9% year over year, according to Douglas Elliman’s June rental report released Thursday—there was an explosion of leasing activity, with a 204.1% overall increase in new leases year over year. In Brooklyn, median prices dropped in every category other than three-bedroom apartments, but the number of new leases doubled between June 2020 and June 2021.
“The Manhattan luxury rental market’s strength has been transformed during the pandemic era into one of the stronger segments,” Jonathan Miller, president and CEO of Miller Samuel, and author of the Elliman report, told Mansion Global. “Heavy leasing volume combined with a sharp decline in luxury inventory suggests potential upward price pressure in the near future.”
A June rental report from Corcoran similarly showed a 184% year-over-year increase in leases signed for the month, as well as an 84% annual increase in listings, indicating a surge of pent-up demand from both renters in search of apartments, and landlords waiting for an opportune moment to rent them out, even as prices remained stagnant.
Brooklyn saw a similar rush of leasing activity, with a 125% year-over-year increase, according to Corcoran, and a 109% increase in new listings. Median rental prices in the borough also declined by 13% over the previous year, and nearly every neighborhood saw price drops with the lone exception of DUMBO, where average rents increased by 5%, up to $4,711.
“Brooklyn rental market activity soared in June [but] pricing negotiability in the borough remains,” said Corcoran chief operating officer Gary Malin in the report. “Apartment-seekers are taking advantage of this limited window of opportunity to secure a great deal, but the current conditions benefit building owners as well. Their first priority is simply to find residents for the excess inventory vacated during the pandemic, and they are attracting new tenants in droves. Rest assured, rents will not be too far behind.”
Article Source: Mansion Global