Manhattan’s luxury rentals remained hot in December, with both median and average rents in the top-tier segment rising by double-digits, according to a Douglas Elliman report released Thursday.
A total of 527 luxury leases, defined by the top 10% of market with a minimum rent of $6,855, were transacted in the final month of 2017. The number was up 47.6% from the same period of 2016 and up 38.7% from the prior month.
Median luxury rents jumped 20.3% annually to $9,625 a month, while the average rental price rose 14.2% to $11,436.
“The reason for the strong growth is the big shift in the mix,” said Jonathan Miller, chief executive of real estate appraisal firm Miller Samuel and author of Douglas Elliman report.
By “shift in the mix,” Mr. Miller was referring to the fact that more high-end, large apartments—most of which were in new condo developments—were rented out in December. “Their market share is large enough to influence the overall rental market,” he said.
The number of super-luxury rentals, those with a minimum price of $10,000 per month, reached 232 in December, more than double that of the same period of 2016. The average rent was $15,667, a 2.8% increase year-over-year. However, median rent in the super luxury realm remained flat at $13,000 per month.
The most expensive rental last December was an apartment at 432 Park Ave., with a monthly rent of $64,000, according to Mr. Miller.
Across all price points, the average rent in Manhattan rose 2.8% year-over-year to $4,158. Compared to November 2017, the average rent also saw a 1.6% increase.
The general theme across the Manhattan rental market was widespread concessions by landlords trying to lure renters without decreasing the monthly rate.
About 48.8% of new development leases were sweetened with landlord concessions, while 35.3% of leases on existing homes got the added sweeteners.
Overall, 36.2% of new leases signed in December had concessions, which amounted to an average of 1.3 months rent-free.
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