Photo: Robert Clark
Rents inched upwards in three New York City boroughs in March as the typically busy spring season began.
But while rents were slightly up overall, a slew of construction activity in individual submarkets drove rents up substantially in some neighborhoods, according to a trio of new market reports released today by New York brokerage MNS.
Rental prices in Manhattan increased 1.43 percent month-over-month $3,956.02 in March.
At the neighborhood level, doorman and non-doorman one-bedroom rents were down 5.1 percent and 7.4 percent from the previous month, respectively, in the pricey SoHo area in March — the largest decreases recorded boroughwide.
And the most significant year-over-year increases were recorded in Manhattan’s Lower East Side neighborhood, where doorman studio and two-bedroom unit rents increased by 9.8 percent and 17.6 percent, respectively.
“These large price growths are largely attributable to the increase in new construction activity in the neighborhood, which exerted upward pressure on rental pricing in the area,” says MNS in the digital release.
Heading into the second quarter of 2018, MNS expects to see Manhattan rents increase slightly as the busy spring season gets underway.
In Brooklyn, overall rents in increased 1 percent from the previous month to $2,783.33 in March.
With the exception of a few neighborhoods, rents were up in nearly every Brooklyn submarket in March — with rents steadily climbing in the borough’s up-and-coming neighborhoods.
Over the last month, average rents rose in Bushwick (1.8 percent), Crown Heights (3.8 percent) and Prospect-Lefferts Gardens (3.8 percent) in March.
“These neighborhoods are all performing well and as these areas become more attractive to both new developments and renters alike, continued rental price growth can be expected,” notes MNS.
New construction also positively impacted the average rental price in the Cobble Hill neighborhood, with the average rent increasing 10.5 percent year-over-year in the area.
“This jump in pricing is attributable to the combination of an increase in new construction within Cobble Hill and surrounding neighborhoods. Together with a relatively small market, particularly amongst studios, making it slightly more sensitive to market movements,” writes MNS.
Meantime, overall rental prices in Queens increased slightly, rising 0.02 percent from the previous month to $2,183.42 in March.
Boroughwide, studio rents declined in every Queens neighborhood except for Jackson Heights, where rents rose 1.8 percent from the previous month in March. Over the last month, one-bedroom rents were up in nearly every Queens neighborhood in March, while most two-bedroom rents were down.
Long Island City remains the hottest neighborhood in Queens and was home to the borough’s most expensive rentals.
MNS is predicting Queens rents to remain stable into the spring season.
Click here to read the reports.