Bloomberg just published an article featuring a 2019 rental market report. In a nutshell, it has been great for landlords. A slow sales market will help bump up the lagging rental market. Rents are increasing while incentives are decreasing. Below are the bullet points you need to know from the article:
In February, the median rent with the value of concessions factored in climbed 4.1 percent from a year earlier to $3,297
Landlords also offered fewer deal sweeteners for a second straight month, following 43 months of increases. The share of new leases with incentives, which averaged 1.2 months of free rent, dropped to 42 percent from 48 percent a year earlier.
New signings fell for the fourth time as landlords succeeded at getting renters to renew rather than move. February’s new leases are down 11 percent.
The vacancy rate tightened to 1.81 percent from 2.29 percent.
Soho and Tribeca area had the borough’s priciest rents last month, with a median of $5,695. Washington Heights was the least-expensive neighborhood at $2,250. Below 96th Street, the cheapest rents were on the Upper East Side, where the median was $3,400.
In northwest Queens, a jump in new studio-apartment leases dragged down rents for the first time in four months. The median, including concessions, fell 1.1 percent to $2,685.
Brooklyn rents climbed for a third month, to a median of $2,784. Just 45 percent of new leases came with incentives, down from 48 percent a year earlier.