The Manhattan rental market has been hit by a tidal wave of new inventories as New Yorkers continue to flee the area after COVID-19.
Rental ads rose 14.5 percent a year ago to a record 15,025 at the end of August, according to New York-based real estate and consulting firm Miller Samuel.
While the vacancy rate rose to 5.1%, a new record had some stabilization as the number of new rental signatures rose by 0.8% to 4,990.
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“With a nominal increase in month-on-month rental signatures, activity hit rock bottom last month,”
Landlords lured new tenants by offering the largest registered discount. Slightly more than 54% of new leasing contracts have received discounts, such as a month of free rent or payment of fees to brokers.
Rental prices decreased by 7.7% compared to a year ago, including concessions, with the largest decline observed in the segment of the market with lower prices.
The average monthly rent for a studio has dropped by 3.5% on a monthly basis to $ 2,574. The percentage fell by 8.6% compared to last year.
Meanwhile, one-bedroom ads saw prices fall 5.3 percent from a year earlier to an average of $ 3,445 a month.
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Prices in eastern Manhattan recorded the largest average decline, 10.6% less than a year ago. Average monthly rents fell 3.8 percent year-on-year downtown, while prices in the West and North Manhattan fell 2.9 percent and 3.1 percent year-on-year, respectively.
Elsewhere in New York, rents in Brooklyn fell 1.4 percent from a year earlier, including concessions, while rents in Queens were down 8.5 percent.