Rental Concessions Continue to Rise Throughout the City

Written By Julia Troy | May 10, 2018 | Published in Real Estate Market Trends
Nyc%20

Now continues to be a great time for NYC renters. In April, Manhattan concessions rose to the third highest market share recorded in the past seven-and-a-half years, with 44.3 percent of new leases in the borough coming with concessions. This is up from 28.6 percent from the same time last year. Not to be outdone, Brooklyn and Queens saw record-setting concessions in April, with the share of new leases signed with concession in Brooklyn jumping to a whopping 51 percent. 

This marks the fifth consecutive month that concessions reached record highs in Brooklyn and the fifth time in the last seven months that a record was surpassed in Queens. What's more, as concessions have risen, rents have continued to fall. The Real Deal reports that for the 11th time in the past 12 months net effective rent in Brooklyn dropped, while rents in Queens fell 11.7 percent year-over-year. 

In Manhattan, concessions were found to be prominent not only in high-end deals, but in the market as a whole. Jonathan Miller, CEO of appraisal firm Miller Samuel, told The Real Deal that 38.3 percent of studios and studios and 45.9 percent of one-bedrooms apartments came with concessions. He explained that concessions exist in the lower-end of the market because landlords have been too aggressive in driving up entry-level rents. Concessions in the luxury market are a result of an oversupply in inventory. 

“Somewhat different reasons, but the same result,” Miller said, quoted by The Real Deal. “The concessions are the vehicle to bridge the gap between landlords and tenants.”

Last month, Business Insider spoke to real estate experts who stated that it's a fantastic time to be looking for an apartment in Manhattan, since not only are concessions up, but inventory is high so there are plenty of options to choose from. This large amount of inventory may not last long, however.  In April, listing inventory declined 13.7 percent in Manhattan, 13.4 percent in Brooklyn, and 13.3 percent in Queens. This suggests that if you're looking to take advantage of these prime market conditions, the time to act is now. Visit the Elegran rental page to see a wide selection of high-end rentals in Manhattan, Brooklyn, and Queens, many of which are offering amazing concessions. 

 

Blog Archive

 

Elegran LLC may or may not be the exclusive listing agent of the properties being displayed on Elegran.com. All data displayed on Elegran.com is presented for informational purposes only and should be independently confirmed by all customers. All Information is compiled from both public and private sources including, but not limited to the RLS, MLS and ACRIS; each of which is assumed to be reliable. All information displayed is subject to errors and omissions regarding apartment specifications and final sale prices, and further, any unit listed may have had its listing withdrawn without notice subsequent to such information being compiled. No representation is made as to the accuracy of any description (ie: listing, close sale data, and/or building description) of any building or individual unit. All measurements and square footage are approximate and all information herein should be confirmed by customer and/or their attorney. Elegran LLC, its members, affiliates, and contributors adhere to New Your City, New York State, and United States Fair Housing Laws.