Manhattan rentals, similar to residential sales, continued in June to show a divided pattern between the luxury market and lower price tiers. As rents for luxury homes declined, pricing in the rest of the market edged up slightly, according to a report Thursday by brokerage Douglas Elliman.
The median rent for the 6,604 leases signed in June was $3,500 in Manhattan, falling 1.3% compared to a year ago. This decrease was largely attributable to luxury rentals, defined as the top 10% of leases with the highest prices, which fell 6.2% to $7,949 per month. By contrast, the median rent for the other 90% rose 1.5% year-over-year.
More:Super-Prime Rentals Boom in London
"The luxury segment has been consistently the weakest market due to a good deal of inventory on the top tier," said Jonathan Miller, chief executive of real estate appraisal firm Miller Samuel and author of the Douglas Elliman report.
The average price of the 661 luxury rentals still stood just above $10,000 per month, although it fell 5.5% from last June. The average luxury rent was skewed by the relatively resilient "super-luxury rentals," priced at $15,000 or more a month.
There were 66 super-luxury rental transactions in June, up 4.8% from a year ago. The median rent of this thin market was $20,500, increasing 4% year-over-year.
| MANHATTAN LUXURY RENTAL MARKETS AT A GLANCE | ||||
| METRICS | VALUE | Y-O-Y CHANGE | ||
| AVERAGE RENT | $10,039 | -5.5% | ||
| MEDIAN RENT | $7,949 | -6.2% | ||
| RENT PER SQ FT | $78.67 | -2.8% | ||
| NO. OF NEW LEASES | 661 | 25.9% | ||
| ENTRANCE THRESHOLD | $6,362 | +0.9% | ||
| # OF $15,000+ LEASE | 66 | +4.8% | ||
| MEDIAN SUPER-LUXURY RENT | $20,500 | +4% | ||
| SOURCE: DOUGLAS ELLIMAN | ||||
More:Billionaire Linked to Trump Email Scandal Selling His NJ Mansion
Overall, new developments across the board remained the most sought-after properties among renters. The median monthly rent in this category rose 11.1% year-over-year to $4,795 in June.
In terms of location, downtown Manhattan (below 34th St.) had the most leases signed and price increases recorded. About 3,013 leases were signed in downtown Manhattan, representing a 30.9% increase from a year ago and accounting for almost half of the total leases last month. The median rent in this area was $3,795, increasing 1.5% from a year ago.
By size, two-bedroom apartments reported the biggest increase in rental prices. The median rents for 1,640 two-bedrooms was $4,312, representing a 4.3% increase from last year. The median rents for apartments with three or more bedrooms fell 3.3% year-over-year to $5,620.
Elsewhere, Brooklyn’s median luxury rental price reached $5,755 in June, up 0.5% from a year ago. In Queens, The top 10% most expensive leases had a median price of $4,650, increasing 3.7% from last June.