Trends & Data

Manhattan Rents Grow Faster Than Sales Prices in November

The fall season yielded little relief for renters in Manhattan, where rent growth outpaced resale price growth in November, according to StreetEasy’s November 2016 Market Reports.

Manhattan Rents Outpace Sales Price Growth

  • Manhattan’s median monthly rent grew 1.9 percent year-over-year to $3,245.
  • Median resale price in Manhattan rose 0.5 percent year-over-year to $979,791, the slowest pace of price growth since January 2011.
  • Brooklyn’s median rent increased 0.9 percent year-over-year to $2,870.
  • Brooklyn’s median resale price grew 3.6 percent year-over-year to $562,663, the slowest pace of price growth since September 2012.

Upper Manhattan Was Hot in November

The Upper Manhattan submarket – comprised of Harlem, Inwood, Washington Heights, Hamilton Heights and Manhattanville – remained the least expensive submarket in Manhattan, but had the highest rent increases and fewest rentals discounted in November.

  • Median monthly rent in the Upper Manhattan submarket remained the least expensive in the borough, but increased the most, rising 6.4 percent year-over-year to $2,449.
  • Rents grew the least in the Upper East Side submarket, up 0.4 percent year-over-year to $2,714.
  • Renters shopping in Upper Manhattan neighborhoods were least likely to see units discounted – less than a third of rental inventory in the area was discounted in November (29.9 percent). This was the lowest share of rental discounts among Manhattan submarkets.
  • The Downtown submarket had the most discounts at a share of 47.3 percent, followed by the Upper West Side submarket (47.2 percent).

North Brooklyn Rents Fall in November

North Brooklyn, which is comprised of Williamsburg, East Williamsburg and Greenpoint, remained the most expensive submarket in Brooklyn, but was the only submarket in either borough where both rents and resale price declined.

  • The North Brooklyn submarket remained the most expensive in Brooklyn, but was the only submarket in either borough where rents declined. Median rent fell 1.9 percent year-over-year to $3,079 in November.
  • Median monthly rent in the South Brooklyn submarket remained the least expensive in the borough, but rose 4.3 percent year-over-year to $1,709.
  • Fewer rentals received discounts in Brooklyn than Manhattan – 41.7 percent of Brooklyn rental inventory discounted in November. Nearly half of all rental listings in North Brooklyn (48 percent) were discounted last month, followed by Northwest Brooklyn (46 percent). South Brooklyn had the smallest share of rental inventory discounted (30.8 percent).

 

Lauren Riefflin

Lauren is the Sr. Comms/Marketing Manager at StreetEasy and oversees all communications efforts for the brand. She collaborates with media and across all StreetEasy departments to help create data-driven, insightful stories about NYC living and local real estate market trends. Originally from Seattle with a BA in Communications from the University of Washington, she grew up on Broadway tunes and always knew the bright lights and big city would end up being home.

  • Hkman

    I’m seeing rents plummet by 12% across the board on all my listings. Everyday I get alerts about new apartments under $3000 that used to rent for well over that last year. I guess you can make stats say anything but let me tell the truth and say rents are falling a lot.
    This market separates the wheat from the chaff, the creative brokers from the robots and will hopefully get rid of all the realtors that should NOT work in real estate. My prediction is that rents will continue to fall for at least the next 3-4 months.
    HGF