The percentage of Manhattan rentals with landlord concessions has reached a new record for the fourth consecutive month, suggesting a growing dependence on incentives among property owners.
According to Douglas Elliman’s January market report, the share of rentals with landlord concessions reached 30.9 percent, marking the first time that the borough has breached the 30 percent mark. Concessions jumped significantly on both a month-to-month and year-on-year basis.
In December, the share of rentals with concessions was at 26.4 percent. During the same month last year, that figure was at 16.4 percent.
In Brooklyn, concessions reached a record high of 18.1 percent, a three-fold growth from last year.
Gary Malin
The Elliman report shows some discounts are better than others. The median rent for a three-bedroom in Manhattan dropped to 6.7 percent to $5,500.
Rental rates for one-and two-bedroom s in the borough mostly held steady. The price for one bedrooms increased by 0.5 percent year-on-year to $3,391 while two-bedrooms held steady at $4,595.
In its January report, CitiHabitats pegged the share of rentals with move-in incentives at 37 percent, more than double the 17 percent from the same time last year.
According to president Gary Malin, renters now expect a deal, and they’re willing to search far to get it.
“We remain in an uneasy equilibrium. Tenants are still very price-sensitive — while landlords continue to resist lowering rents — but begrudgingly, they still transact,” Malin said. “It’s a value-driven market now. The dynamics of our city have changed in that apartment-seekers are much more open to a variety of neighborhoods. They want to know what’s out there before they sign a lease, and they expect a deal.”
In Manhattan, the best target for a bargain is Washington Heights, which had the lowest median rent in the borough at $2,275. In Brooklyn, Crown Heights median rent is $2,400.
