Winter can be an advantageous time to rent an apartment, but this year, competition will be unusually strong. (Getty Images)
In New York City, November through February is usually a quiet season in the rental market. And for savvy renters, winter can be a strategic time to sign a new lease, since fewer people looking means less competition and more negotiating power. This winter, however, renters should expect the very opposite: the NYC winter rental market in 2020 is shaping up to be unusually expensive and competitive.
Here are four factors driving the heightened year-end competition for rentals — and our tips how to find a good deal.
1. Rents Are Rising Across the City
According to data from StreetEasy’s latest Market Reports, rents are rising sharply all over in Brooklyn, Queens and Manhattan. Last quarter, the Manhattan Rent Index rose to an all-time high of $3,318. The market was just as intense in Brooklyn, with the index rising to $2,712, up 3.9% over last year. And in Queens, the StreetEasy Rent Index jumped 3.3% to $2,200. Even though rent growth usually slows at the end of the year, we expect little relief from these rising prices in the coming months.
Our tip: Renters should negotiate for two-year leases to lock in value while they still can. Alternatively, renters can opt for no-fee rentals to reduce the upfront costs of signing a lease.
Manhattan and Brooklyn 1-2BR Rentals Under $3,000 Article continues below
2. Fewer New Yorkers Buying Means More New Yorkers Renting
Why do we expect to see rents keep rising? Because of the state of the NYC home sales market, where prices remain stubbornly high. According to StreetEasy Senior Economist Grant Long, “Until sellers recognize that prices are not what they once were, those with the means to buy will continue to play the waiting game from the comfort of their rental.” That’s why Long predicts possibly record rates of rent growth this coming winter.
Our tip: You can’t fight rising prices, but if you want to get an edge on the competition, have your paperwork in order. This is always a best practice for renters, but it’s all the more important in a competitive market. Other renters will show up to the open house with their completed paperwork in hand, and so should you.
Speaking of open houses, if a rental is hosting multiple open houses, always opt for the earliest weekday night available. Do not wait until the weekend. Attending a weeknight showing is your best chance to nab the apartment early.
3. Landlords Are Offering Fewer Concessions
In every single major submarket in the city, concessions decreased last quarter. Typically, these advertised reductions come in the form of one or more months of free rent and are often a sign of a slow rental market. Usually they’re offered in newer, high-rise buildings and in new-development-heavy neighborhoods.
But while concessions are going down, they are still prevalent in many areas. Take Northwest Brooklyn, which includes Downtown Brooklyn, Cobble Hill and Dumbo: Concessions are down 3.5% annually, but 20% of all listings still have them. The same is true in Midtown Manhattan, where concessions are down 1.2% annually, but 1 in 5 listings still have them.
Our tip: Renters looking for a deal should consider neighborhoods in concession-heavy neighborhoods like Midtown West and Midtown South in Manhattan, and Fort Greene, Downtown Brooklyn and Dumbo in Brooklyn.
Manhattan and Brooklyn Rentals Under $3,500 With Upcoming Open Houses Article continues below
4. Prices for 1-Bedrooms Are Shooting Skyward
Rents for 1-bedrooms are rising sharply on the Upper West Side (up 8.3% since last year) and Downtown Manhattan (up 7.8%). They’re also shooting skyward in the popular areas of brownstone Brooklyn (up 10.3%), as well as around Williamsburg and Greenpoint (up 12.9%) — meaning rental deals in the most coveted parts of NYC are getting pretty hard to find.
Our tip: If you’re set on finding a 1-bedroom, go after neighborhoods where prices are flat or rising slowly. Try Upper Manhattan, where the median asking rent for a 1-bedroom is just $2,007, up 2.9% from last year.
In Brooklyn, try areas like Bay Ridge, Sunset Park and Greenwood, plus other neighborhoods on the southern side of the borough. There, the 1-bedroom median asking rent has remained stable at $1,725. If you want more information on the price of 1-bedrooms by neighborhood, you can nerd out on StreetEasy’s Data Dashboard, where you’ll find our latest reports and all our housing data.
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