The Corcoran Group recently introduced newly-reformatted and updated Manhattan & Brooklyn Rental Reports for May 2021.
“New York City landlords are performing a delicate balancing act as they recover from the effects of the pandemic. In May, many Manhattan building owners tested the waters by raising rents and pulling back on the use of move-in incentives. In some cases, they released additional units they may have held off the market due to lower demand in previous months. We entered the summer of 2021 with more choice for apartment seekers – who sometimes had to also pay more to secure a new home.
As a whole, landlords are not being as aggressive as they once were, but it hasn’t impacted velocity. The number of leases signed across Manhattan and Brooklyn continues to rise, and reached 9,628 in May. Our rental market is always dynamic, but we are in a period of rapid transition as the city’s comeback accelerates. Conditions change day-by-day.”
–Gary Malin, Chief Operating Officer, The Corcoran Group
KEY MANHATTAN FINDINGS
- In May, there were 7,615 leases reported signed in Manhattan, up 6% from April. This marks the third straight month with over 7,000 leases signed in the borough. The total number of leases signed across Manhattan and Brooklyn reached 9,628.
- At $3,125, May’s median rent grew 6% versus last month, a month-over-month gain not seen since early 2019.
- With 14,913 apartments available, Manhattan inventory is up 9% from April – and up 142% since last May.
o Inventory grew as owners look to take advantage of the recent growth in the renter pool by releasing held-back units.
- At 3.58%, the vacancy rate during May increased only slightly from April’s rate of 3.19% – but was up by nearly 2% year-over-year.
o Vacancy ticked up month-over-month as new listings plus prior availabilities still vacant outpaced leasing activity.
- The highest vacancy rates were found in Midtown East (at 5.90%) and in the East Village/Lower East Side (at 5.40%). In contrast, the lowest vacancy rates were in the Financial District/Battery Park City (at 2.61%) and in the Greenwich Village/West Village (at 2.79%).
- Average rents continued to fall annually in nearly all areas of Manhattan – the most in Gramercy, where rents declined 16% year-over-year (from $4,059 to $3,408), though SoHo/Tribeca bucked the trend and saw average rents jump 13% year-over-year (from $6,257 to $7,083).
KEY BROOKLYN FINDINGS
- In May, there were 2,013 Brooklyn leases signed – 14% more than in April and the second-highest reported figure in over two years.
o New potential renters returning to the city and current renters looking for new lease terms drove the increased activity.
- But with 5,856 apartments available, Brooklyn inventory is also up – 57% from April and 182% since May of last year.
o A big reason for the jump is that owners who previously held back inventory released more listings to take advantage of the recent uptick in activity.
- The median Brooklyn rent of $2,600 in May dipped from both last month and last year. Though the figure of was 4% higher than the low in January 2021, price-sensitive renters are still finding values.
- Rents fell the most in North Williamsburg, where rents declined 14% year-over-year (from $4,529 to $3,902). In contrast, pricing in Prospect Heights rose 4% (from $3,332 to $3,464) due to a new development which began leasing in May.
