If there is good news about the average rental rates in New York City, it is that their skyrocketing climb has somewhat abated in recent months. In fact, it can be argued that the overall rates have come down slightly, although most would agree that they are still too high. In Manhattan and Brooklyn, the rates reached all-time highs in January 2017, but they have dropped a little over the ensuring months.
Still, in Manhattan which is the home to the highest average rates, they have come down slightly in the past year from their high of $3,382 to $3,350 which should be seen as a sign of a potential turnaround. The average rents have come down across the board for one-bedroom and two-bedroom apartments along with luxury apartments which had been leading the way in terms of rising rates. Only in the newly developed apartments have the rates gone up over the past few months.
If you are looking for an apartment in Northwest Queens, the rates have actually come down over the past year. Today, they average about $2,800 which is slightly down from their high of $2,954. This is due no doubt to the number of new leases which has declined considerably over the same period. The expansion of the inventory has meant more availability for apartments in the area.
The same general trend can be found in Brooklyn where the numbers have decreased over the past few months as well. The overall median rates are $2,750 with studio apartments declined slightly to $2,296, one-bedrooms come in at $2,600, two bedrooms hit a flat $3,000 average, and the luxury market which is the source for most of the gains comes in at $5,411 on average which is little different compare to last year. Even the new development is down to $3,284 which shows that the overall market may be heading downward at least in the short term.
Experts consider the rental market to be in a period of fluctuation which means that it might be transitioning downward if the inventory of apartments continues to grow. However, it is also expected that the rates are not going to plummet anytime soon, but that they will gradually come down over time assuming that new renters avoid the big areas of Manhattan, Queens, and Brooklyn.
You can find the most expensive apartments in Manhattan in the Soho/Tribeca area that has a median rent of $5,225 per month with Gramercy/Flatiron coming in a distant second at $4,100. The Dumbo area of Brooklyn has an average of $5,000 while the downtown area is second at $3,600. These are rates which have only dipped slightly over the past year.
However, the average price of one-bedroom and two-bedroom apartments remain high and the drop is only negligible when you consider the increases that have occurred over the past few years. However, there has been an increase in incentives as many apartment building owners have tossed in discounts like a free month’s rent to help lure in new renters.