Rental Market Maintains Strength, With Particular Growthat the High End

Douglas Elliman Real Estate, the largest brokerage in the New York Metropolitan area and the second largest independent residential real estate brokerage in the United States by sales volume, today releases its November Rental Market Report for Manhattan, Brooklyn and Queens. The report showed a continuation of the trends seen throughout the year so far, with rents rising and concessions falling across all three boroughs, though new leases were down.

Net effective median rental prices in Manhattan have not declined a single time in 2019, and in November, median rent reached the highest levels seen in more than a decade and the second-highest level ever recorded. Concessions fell again for the eighth straight month.

“We’ve seen a lot of strength in the rental market over the course of the year, and even though it was a slow month for leasing, November’s report again shows an extension of the same themes,” said Hal Gavzie, Executive Manager of Leasing for Douglas Elliman Real Estate. “Rents are rising even faster, due in part to price growth at the high end which is largely a product of the softer sales conditions in the luxury market.”

In Brooklyn and Queens, extensive price growth was also seen at the high end of the market.Overall median rental prices rose in both boroughs, with landlord concessions down – most significantly for large apartments in Queens.

“Conditions in the NYC real estate market right now are ideal for the rental market to thrive, so this month’s results are no surprise,” said Jonathan Miller, President and CEO of Miller Samuel Inc. and the author of the report. “We haven’t seen a rental price drop or an increase in concessions in several months, and it’s certainly looking like the market will finish out the year with that same resilience.”

MANHATTAN RENTAL MARKET HIGHLIGHTS
Overview

“Median rental price rose to its second-highest level recorded.”

- Net effective median rent hasn’t seen a year over year decline in 2019

- Median rent reached its highest level in more than a decade

- Landlord concession market share fell annually for the eighth straight month

- Non-doorman median rent surged at highest rate in more than seven years of tracking

- Highest median rent for 1-bedrooms reached in nearly twelve years of recording

- Median rental price moved higher at all price strata presented and by all bedroom sizes

- Share of new leases at or above $10,000 reached its highest level in more than eight years of tracking

- Super luxury rent representing the top 5% of the market, showed the highest annual gain

Key Trend Metrics (from same period last year)

(Face Rent)
- Median rental price rose 8.5% to $3,600

- Rental price per square foot rose 5.8% to $71.67
- Average rental price increased 7.6% to $4,465

(Net Effective Rent – includes concessions)
- Median rental price rose 8.7% to $3,502

- Share of new rental transactions with OP or rent concessions was 38.7%, down from 42.2%
- Size of concession was 1.2 months of free rent or equivalent, unchanged

- Manhattan vacancy rate was 1.77% up from 1.65%
- Number of new leases fell 13.5% to 3,096

- Listing inventory rose 3.6% to 5,398
- Days on market was 28, down from 29
- Listing discount was 2.6%, down from 2.8%

BROOKLYN RENTAL MARKET HIGHLIGHTS

Overview

“High-end of the market saw the largest price growth.”

- Year over year median rental price trends rose more in higher-end markets

- Net effective median rent rose year over year for twelve consecutive months

- Land concession market share fell year over year during every month of 2019

Key Trend Metrics (from same period last year)

(Face Rent)
- Median rental price was $2,950 up 3.5%
- Rental price per square foot rose 4.8% to $47.39

- Average rental price rose 6.8% to $3,363

(Net Effective Rent – includes concessions)
- Median rental price rose 4.3% to $2,855
- Share of new rental transactions with OP or rent concessions was 39.8%, down from 46.5%
- Size of concession was 1.4 months of free rent or equivalent, down from 1.5

- Number of new leases fell 8.6% to 878

- Listing inventory fell 12.5% to 1,535
- Days on market was 24, down from 27
- Listing discount was 1.9%, down from 2%

QUEENS RENTAL MARKET HIGHLIGHTS

Overview
[Northwest Region]

“The largest areas of price growth occurred at the high-end.”

- Landlord concession market share was significantly lower for larger apartments

- Net effective median rent hasn’t declined year over year in three months

- Concession market share for new development was nearly double that of resales

Key Trend Metrics (from same period last year)

(Face Rent)
- Median rental price rose 4.2% to $2,989
- Rental price per square foot declined 6.1% to $49.75

- Average rental price increased 5.2% to $3,141

(Net Effective Rent – includes concessions)
- Median rental price rose 4.6% to $2,878
- Share of new rental transactions with OP or rent concessions was 54.5%, down from 59.2%
- Size of concession was 1.1 months, down from 1.2 months

- Number of new leases fell 14.3% to 233

- Listing inventory declined 13.3% to 399
- Days on market was 24, up from 22
- Listing discount was 1.1%, down from 1.3%

- New development market share was 33.5%, down from 46%

About Douglas Elliman Real Estate

Established in 1911, Douglas Elliman Real Estate is the largest brokerage in the New York Metropolitan area and the second largest independent residential real estate brokerage in the United States by sales volume. With more than 7,000 agents, the company operates approximately 120 offices in New York City, Long Island, The Hamptons, Westchester, Connecticut, New Jersey, Florida, California, Colorado, Massachusetts and Texas. Moreover, Douglas Elliman has a strategic global alliance with London-based Knight Frank Residential for business in the worldwide luxury markets spanning 60 countries and six continents. The company also controls a portfolio of real estate services including Douglas Elliman Development Marketing, Douglas Elliman Property Management and Douglas Elliman Commercial. For more information on Douglas Elliman as well as expert commentary on emerging trends in the real estate industry, please visit elliman.com.