Experts: NYC Rental Market to Experience Relief This Fall

New_York_Life_Insurance_Company_Building_346_Broadway

Experts: NYC Rental Market to Experience Relief This Fall

New_York_Life_Insurance_Company_Building_346_BroadwayExperts are reporting that this Autumn, the New York City rental market will experience some relief. As the city chilly months inch closer, it will become easier for renters to find an apartment throughout all five boroughs. The predicted dip in prices and simultaneous increases in inventory and concessions is right on target for this time of the year.

“Price growth is a little bit slower but also units aren’t getting snapped up quite as quickly, so there’s more of them available,” said Krishna Rao, an economist affiliated with StreetEasy, according to AMNY. “You have a little more breathing room than you would have had a year ago.”

Brooklyn’s median rent experienced a 6 percent between July 2014 and July 2015. It this rose again by 1.5 percent through July 2016. During the month of July, the with median rents in the borough known as Brooklyn was up .4 percent from June, and sat at approximately $2,899.  Between July 2014 and July 2015 median rent rose by 4.7 percent in Manhattan, followed by a 2.6 percent spike in July 2016. The median rent, up 6 percent since June 2016, was $3,395.

There are numerous complexes in development in Brooklyn, namely Williamsburg, which has experienced a new rental boom. A seven-story, 164-unit rental is going up at 55 N. Fifth street early, and the property managers have already listed 14 units on the StreetEasy website. Down near 223 N. Eighth St, The Berkley Complex was  constructed. That seven-story, 164-unit rental property has six available units.

Manhattan tells a similar story when it comes to vacancy rates, which were high throughout the summer and throughout the city. A number of incentives and concessions were presented to renters, including a waived broker’s fee or free month’s rent. Brokers, such as Citi Habitats, found that approximately 20 percent of new Manhattan rental leases offered concessions during the month of August. Possibly for that reason, August saw a vacancy rate decrease, it dropping from 1.73 percent to 1.92 percent. Nonetheless, it’s still historically high. Concessions are expected to become more prevalent during the fall months, particularly because landlords are attempting to quickly fill these vacancies ahead of winter months, which is widely known as the best time for renters to find a new rental.

New York City becomes significantly more tenant-friendly during the winter. Some experts predict that the prices for one bedroom apartments will drop between 2 and 4 percent across the city before winter officially hits. That translates to a decrease of about $100 a month, which is nearly enough to purchase an unlimited monthly MetroCard.

With that said, renters can look to recent market news to negotiate their way to lower costs this fall. Ahead of yearly rent increases (5 – 10 percent annually), tenants can request that landlords not raise their rent.

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