Manhattan Rental Market Report

As the first quarter closes, we find that prices in Manhattan continue to lag in year-over-year comparisons. The largest difference this month is in doorman studio units, which decreased 10.43%. Doorman two-bedrooms were the relative stand-outs this month, only having fallen 2.59% since this time last year. It should be noted that these numbers do not take into consideration concessions, which would likely have shown an even more prominent downward trend, especially in doorman units.

In month-to-month comparisons, non-doorman units are flat overall, while doorman units fell 2.01%. Hidden within the data was actually an increase in non-doorman two-bedroom units by 2.28%.

As for vacancies, doorman units continue to fall in price while offering aggressive concessions, and in turn, inventory levels have stopped rising and flattened out this month. This is a positive sign for doorman property owners and landlords who have been proactively attempting to fill their units via such actions. Non-doorman units, however, did not see the same price cuts and so their inventory levels actually climbed by 10% this month - illustrating just how price sensitive the current market is.

As Manhattan begins to show direct and proper responses to market actions, I am becoming ever hopeful that we are moving towards a healthier rental market, or at least, that seasonality trends will again be upon us soon. Landlords, property owners and consumers still have a long road to find the middle ground, but I am confident in the market's ability to do so.

A Quick Look

March Average Rental Prices in Manhattan

Greatest Changes Since February

Year-over-year Changes

Notable Trends

Non-doorman units hold prices — Non-doorman units across the city were flat on average this month, but even though prices held, vacancies rose 10%. As vacancies rise, it seems that prices may not yet have reached equilibrium levels – especially with inventory levels already high.

Service sees prices fall, but inventories hold — While non-doorman units appear to have continued disparity between supply and demand, the doorman sector seems to be working on a solution. Doorman units saw prices fall around 2% on average this month, but vacancies remained flat. As landlords continue to drop prices and offer incentives, it seems as though excess inventory is being absorbed by consumers looking to take advantage of the market.

East vs. West — In both Midtown and Uptown, the story of price drops can be told in an east vs. west battle. As the bubble began to burst, the eastside saw prices tumble first, but this month, the westside of Manhattan appears to be outpacing its counterpart for price drops. The westside is down 3% this month, while the eastside remained flat.

Where Prices Decreased

Harlem—Doorman studios (-1.64%), non-doorman one-bedrooms (-0.97%), doorman one-bedrooms (-1.79%)

Upper West Side—Non-doorman studios (-0.65%), doorman studios (-2.19%), non-doorman one-bedrooms (-2.34%), doorman one-bedrooms (-0.6%), non-doorman two-bedrooms (-1.22%), doorman two-bedrooms (-0.6%)

Upper East Side—Non-doorman studios (-0.67%), doorman studios (-3.28%), non-doorman one-bedrooms (-1.93%)

Midtown West—Non-doorman studios (-5.98%), doorman studios (-9.57%), non-doorman one-bedrooms (-0.64%), doorman one-bedrooms (-5.12%), non-doorman two-bedrooms (-3.42%), doorman two-bedrooms (-3.89%)

Midtown East—Non-doorman studios (-3.46%), non-doorman one-bedrooms (-5.06%)

Murray Hill—Non-doorman studios (-0.85%), doorman studios (-3.02%), non-doorman one-bedrooms (-3.38%), doorman two-bedrooms (-0.61%)

Chelsea—Doorman studios (-1.91%), non-doorman one-bedrooms (-0.66%), doorman one-bedrooms (-0.87%), doorman two-bedrooms (-1.14%)

Gramercy Park—Non-doorman studios (-7.06%), doorman studios (-1.55%), doorman two-bedrooms (-4.35%)

Greenwich Village—Non-doorman studios (-2.33%), non-doorman one-bedrooms (-3.37%), doorman one-bedrooms (-4.1%), non-doorman two-bedrooms (-1.16%), doorman two-bedrooms (-8.4%)

East Village—Non-doorman studios (-1.85%), doorman studios (-0.47%), non-doorman one-bedrooms (-1.05%), doorman one-bedrooms (-6.27%), doorman two-bedrooms (-5.87%)

SoHo—Non-doorman studios (-5.59%), doorman studios (-2.35%), doorman one-bedrooms (-7.56%), doorman two-bedrooms (-1.76%)

Lower East Side—Non-doorman studios (-2.41%), doorman studios (-3.28%), doorman one-bedrooms (-2.56%), doorman two-bedrooms (-8.41%)

TriBeCa—Doorman studios (-0.66%), doorman one-bedrooms (-1.35%), doorman two-bedrooms (-6.52%)

Financial District—Non-doorman studios (0.94%), doorman studios (2.08%), doorman one-bedrooms (2.68%), non-doorman two-bedrooms (7.90%), doorman two-bedrooms (0.80%)

Battery Park City—Doorman studios (-1.44%), doorman two-bedrooms (-1.41%)

Where Prices Increased

Harlem—Non-doorman studios (1.81%), non-doorman two-bedrooms (0.06%), doorman two-bedrooms (1.3%)

Upper East Side—Doorman one-bedrooms (0.99%), non-doorman two-bedrooms (0.49%), doorman two-bedrooms (4.51%)

Midtown East—Doorman studios (1.03%), doorman one-bedrooms (3.35%), non-doorman two-bedrooms (4.16%), doorman two-bedrooms (1.11%)

Murray Hill—Doorman one-bedrooms (0.82%), non-doorman two-bedrooms (3.64%)

Chelsea—Non-doorman studios (4.84%), non-doorman two-bedrooms (3.95%)

Gramercy Park—Non-doorman one-bedrooms (2.8%), doorman one-bedrooms (0.08%), non-doorman two-bedrooms (1.63%)

Greenwich Village—Doorman studios (1.42%)

East Village—Non-doorman two-bedrooms (5.83%)

SoHo—Non-doorman one-bedrooms (3.97%), non-doorman two-bedrooms (7.03%)

Lower East Side—Non-doorman one-bedrooms (1.36%), non-doorman two-bedrooms (4.24%)

TriBeCa—Non-doorman studios (9.54%), non-doorman one-bedrooms (5.44%), non-doorman two-bedrooms (4.74%)

Financial District—Doorman one-bedrooms (0.65%)

Battery Park City—Doorman one-bedrooms (0.49%)

Tips for Renters

• Midtown West: the destination for non-doorman units. Midtown West has long been a neighborhood known for a central location and good value, but that value has gotten even better. With non-doorman units falling over 3% this month, apartments in this area have become an even better bargain. Non-doorman studios are now the lowest priced units, with the exception of Harlem, at $1,670.
• Clear choice: LES. If you're looking for a one-bedroom apartment with service, forget the rest of Manhattan, renters should be combing the LES for deals. One-bedroom units are currently averaging $2,547 - over $450 cheaper than any other central Manhattan location.
• Safety, security and service. Battery Park City prices have continued to fall from their heights of last spring and summer. Units in this area are down an average of 14% from their peaks, making them an excellent value for those looking for service and a quieter location.

Mean Manhattan Rental Prices

The Mean Rental Price graphs illustrate average monthly rents for studios, one–bedrooms and two–bedrooms in doorman and non–doorman buildings in Manhattan for the month of March 2009. Graphs tracking citywide and neighborhood price changes over a rolling 13-month period follow.

The Report Explained

The Manhattan Rental Market Report is the only report that compares fluctuation in the city’s rental data on a monthly basis. It is an essential tool for potential renters seeking transparency in the NYC apartment market and a benchmark for landlords to efficiently and fairly adjust individual property rents in Manhattan.

The Manhattan Rental Market Report is based on data cross-sectioned from over 10,000 currently available listings located below 155th Street and priced under $10,000, with ultra-luxury property omitted to obtain a true monthly rental average. Our data is aggregated from the proprietary database and sampled from a specific mid-month point to record current rental rates offered by landlords during that particular month. It is then combined with information from the REBNY Real Estate Listings Source (RLS), OnLine Residential (OLR.com) and R.O.L.E.X. (Real Plus).

RE: Manhattan Rental Market Report

I would like you to answer my 4 questions.   1. What is LES?     2.  What is Doorman & Nondoorman?    3. What could be the explanation of progressive fall in Battery Park City prices even though safety & security exists     4. What is the meaning of service?    Sunil    SKSingh@kw.com