Low Sales = Higher Rent

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.

Original Article

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