Here at Luxury Rentals Manhattan, we have already discussed the fact that the much-predicted and highly-anticipated traditional summer rise of rental prices is underway. Prices for luxury rental apartments have risen in both May and June, and we recently predicted the probable continued rise of prices before the summer’s end. There is more information available now that gives a better picture of what is happening with the Manhattan rentals market, and -- as is fitting for New York real estate experts such as ourselves -- the stats match our predictions. Based on second quarter reports put out by Citi Habitats and Prudential Douglas Elliman, it is clear to see that the rentals market is growing stronger, and rental prices have yet to hit their peak.
There was a 9.2% change in the price of one-bedroom rentals and a 10.8% increase in the price of two-bedrooms. The average prices of condominium rentals appears to look like it will continue to climb. The most expensive area to rent a one bedroom apartment is West Village, where the average rent is $3,457. It is followed closely by both Soho and Tribeca. Manhattan’s lowest average rental costs can be found in Upper Manhattan, and surprisingly, the Upper East Side where rentals now average $2,621 a month.
For the first time in a few years, there are now bidding wars breaking out for Manhattan rentals as demand has risen but vacancies have dropped. It should also be noted that landlords are giving fewer concessions than they have in the past, another sign that the Manhattan luxury rentals market is growing stronger. In the second quarter of last year, landlords were giving an average of two months of free rent to new renters. However, that number has now dropped to an average of 1.2 months of free rent.
There is still good news for those looking to rent. There are still deals to be made in the summer with no-fee apartments and neighborhood deals in the Financial District and midtown Manhattan, but even more will be found in the coming months as the weather cools and the summer peak has passed. As the summer winds down and the temperatures begin to cool off, the Manhattan luxury rental market should as well. The summer is generally considered to be the busiest time for Manhattan rentals. With fewer people looking for rentals once the fall and winter roll around, prices should drop off. As the wintertime approaches, the number of Manhattan luxury rentals available increases and landlords are willing to give more concessions.
