The Manhattan rental market was hit with a tidal wave of new inventories as the borough continued to run in the wake of COVID-19 in New York.
According to New York-based real estate and consulting company Miller Samuel, rental listings at the end of August rose 14.5% from a year earlier to a record 15,025.
While the vacancy rate climbed to 5.1%, a new record, there was some stabilization as the number of new lease signings ranged from 0.8% to 4,990.
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Miller Samuel CEO Jonathan Miller wrote, “With the month-to-month signing of new leases with a slight uptick in the month, activity hit a low of last month.”
Landlords enticed new tenants by giving them the largest share of concessions on record. More than 54% of new lease signings received concessions, such as one month’s free rent or payment of broker fees.
Fares fell by 7.7% from a year earlier, with the biggest drop occurring in the market’s low-cost segment.
The average monthly rent for a studio fell 3.5% month-over-month to $ 2,574. This rate was 8.6% lower than the previous year.
One-bedroom inventories, meanwhile, slide in prices to an average of $ 3,445 per month, up 5.3% from last year.
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The largest average drop in prices has been seen on Manhattan’s East Side, down from 10.6% a year earlier. Downtown Downtown dipped 3.8% year-over-year in average monthly rent, while prices on the West Side and North Manhattan decreased by 2.9% and 3.1% on a year-on-year basis, respectively.
Elsewhere in New York City, Brooklyn rents were down 1.4% over the previous year, including concessions, while rental prices in Queens were up 8.5%.