2Q 2011 Manhattan Rental Report

Good News for Manhattan Landlords: Rents Up and Concessions Down.

• The number of new rentals shot up 51.5% from last year, yet listing inventory decreased by 11% due to high activity.
• Rentals are being snapped up nearly three weeks faster than last year, with days on the market dropping to only 33, down from 53 last year and 40 last quarter.

The above chart only accounts for face rents. Concessions given by the landlord at signing factor into the overall cost for a tenant. The chart below shows prices with concessions factored into the equation.

• Last year, 60% of rentals received an average of 2 months free rent. In 2Q of this year, only 3.4% received concessions, averaging 1.2 months free rent.
• Median rents paid by tenants increased by 7% from last year and 2.8% from last quarter, to $2,888.

• Co-op sales marked the second highest in nearly four years at 1,366, up 13.5% from last year.
• Median sales price showed a slight increase from last year, up from $607,500 to $700,000.
• The number of co-op listings rose 8.4% from last quarter with 4,332 on the market.
• The absorption rate, in other words how long it will take to sell the 4,332 active sales at today’s pace, is 9.5 months, down .3% from last year.
• Sales of two-bedroom apartments increased by 4.4%, while the studio and one-bedroom sales share remained consistent.

• Median prices slipped 2.7% from last year and 7% from last quarter, to $1,070,000.
• Average prices increased by 1.3% from last year but dropped 2.8% from last quarter, with price per square foot following the same pattern at +4.2% and -2.8%, respectively.
• Number of sales fell 17.3% from 2Q 2010, attributable to last year’s tax credit surge, but increased 33.2% from last quarter, partially attributable to seasonal sales.
• Two bedrooms gained sales share from last year’s lull, bringing them in at 41.8%, just 3% below the 10-year average.

Source: Prudential Douglas Elliman

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