For renters in New York City, a bit of financial relief may be on the horizon. This is particularly true for those in the luxury market, with the average rent in Manhattan and Brooklyn taking a dip in January. At the same time, concessions such as free rent and comped building amenities have also reached a high in both boroughs.
Taking a Closer Look
According to reports, the use of concessions in New York City have been on the rise. This is particularly true in Manhattan, where concessions hit an all-time high for the fourth consecutive month in January. As such, more than 30 percent of leases in the borough now include some form of concession, making it a good time to search for a place offering reduced rent.
When factoring in the cost of concessions, the median rent in Manhattan has been falling for six consecutive months. As such, the month of January saw the median rate fall to $3,259 when including concessions. When removing concessions from the data, the median rent came to $3,369 for the month of January.
Changes in Demand
In Manhattan, the demand for the less expensive and often smaller apartments has remained strong over the last several months. The larger more expensive rentals, however, have experienced less demand. As such, the average rent for studios and one-bedrooms has been on the rise while the average rent for two-bedroom rentals in Manhattan has actually gone down by three percent to $4,382. Three-bedroom rentals have seen an even greater fall to an average cost of $7,706, representing a 12 percent drop in price. Given these figures, it shouldn’t be surprising to learn that the two-bedroom market in Manhattan is the market that is experiencing the greatest number of concessions.
Brooklyn Sees Similar Trends
In Brooklyn, the trend is quite similar. Concessions reached record highs in January, with more than three times as many given out this year when compared to the same time last year. Meanwhile, the median rent in the borough dropped by two percent when compared to January 2016 to $2,750. When including concessions, it drops even further to $2,702, which is nearly three percent lower than the same time last year. Overall, median rents throughout the borough have been trending downward with the demand for two- and three-bedroom apartments being less than the demand for studios and one-bedrooms. As such, rents for two-bedroom rentals have fallen nearly four percent while rents for three-plus-bedrooms have fallen eight percent. For studios, rents have remained relatively stagnant at $2,300.
Queens Offers the Greatest Concessions
While concessions can be found throughout the city, Queens is likely to offer the best opportunities for concessions. In fact, 38.5 percent of Queens rentals are currently being offered with some form of concession while the median rent in the borough has dropped by four percent when compared to the same time last year. In January, this meant rents were at just $2,700. This doesn’t mean rents have gone down overall, however, as the median rent for studios is up by 9 percent to $2,186 while the rent for three-plus-bedroom units is up by four percent to $3,800.