By: Edward Andrews
StreetEasy’s October 2019 Market Reports show landlords offering considerably fewer discounts than in years past.
“Renters are facing an unusually competitive fall rental season, with fewer discounts offered by landlords and rent growth continuing to increase at record paces, according to StreetEasy’s October 2019 Market Reports,” wrote Emily McDonald in the report, which is published on the company’s web site, streeteasy.com. “The latest data shows landlords know that would-be buyers are waiting for home prices to come down and are choosing to rent in the meantime, allowing landlords to offer fewer discounts than they normally would this time of year.”
According to StreetEasy’s data, “the share of rent cuts typically peaks this time of year — and while October did bring the highest share of discounts of 2019, we have not seen percentages this low in the month of October since 2015. Landlords in Brooklyn offered the fewest discounts, with only 17% of rentals getting a cut, a decrease of 3.1 percentage points from last October. In Queens, this figure fell to 18.1%, down 1.9 percentage points from a year prior. In Manhattan, 23.4% of rentals were discounted, down just slightly from last year (less than a percentage point).”
Rent prices were directly correlated with the lack of discounts — in all three boroughs analyzed, rents reached new record highs. The StreetEasy Rent Index increased the most in Brooklyn, rising 4.3% to $2,720. Queens and Manhattan were not far behind, with increases of 3.4% and 3.1%, reaching record highs of $2,202 and $3,315, respectively.
“The spike in demand for rentals we’re seeing this year means that landlords don’t have to work as hard to attract a tenant this winter season,” noted StreetEasy Economist Nancy Wu. “New Yorkers looking to sign a new lease this winter should expect tougher negotiations and fewer concessions, and should be prepared to move when they find the right apartment.”
For Manhattan, StreetEasy’s October 2019 findings include:
Rents reached an all-time high. The StreetEasy Manhattan Rent Index jumped 3.1% to $3,315 in Manhattan.
Rents rose the most in the Upper West Side submarket, reaching $3,415 — an increase of 3.0%.
The share of rent cuts was the highest in the city, though it remained flat over last year at 23.4%.
In Brooklyn:
Rents rose at their fastest pace since 2015. The StreetEasy Brooklyn Rent Index jumped 4.3% to $2,720 — the fastest pace of growth in the city.
Rents in North Brooklyn rose the most, as the area rebounded from the canceled L-train shutdown, up 4.3% from last year to $3,208.
The fewest rent cuts were offered by landlords. The share of rent cuts dropped 3.1 percentage points in the borough, down to 17.0% — the lowest share of the boroughs analyzed.
(For additional information, go to https://streeteasy.com/blog/october-2019-market-reports/)
