Manhattan’s luxury rental prices were broadly flat over the last year as the market struggles amid an oversupply.
The median luxury rental price in Manhattan, defined as the top 10%, fell just 0.4% year over year to $7,889 in July, according to new research released Thursday by appraisal firm Miller Samuel on behalf of Douglas Elliman Real Estate. The entry threshold is $6,411.
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Month to month, prices fell 6.9% to $7,889 in July, reversing June’s rise of the same amount. However, the annual price growth trend smooths out any monthly blips. The median rental price for the overall market was $3,450, up 0.2% on the month and 0.9% higher on the year.
“The way to describe the market in general is that it continues to be softer at the top. Inventory is up 33% and a lot of that supply is skewed to the high end. That’s where all the product is being created,” said Jonathan Miller, chief executive of Miller Samuel and author of the report.
“The top level view of the market is that in 2016 growth has cooled since the beginning of the year, compared with 2015, when prices year-over-year were up much more,” Mr. Miller said.
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Amid a struggling market, landlords have been offering sweeteners, such as free gifts or rent discounts, as a way to beat the slowdown. The report found that the share of all rentals with landlord concessions, as they’re called, more than doubled last year’s share—to 10.8% from 5.3% despite July being a peak month for rental demand as families look for accommodation ahead of the new school year.