Photo: Andy Rusch/Flickr
While Manhattan rents were down overall in May, rents in Chelsea continued to rise.
The presence of multiple multinational corporations in Chelsea — like the tech juggernaut Google — is likely fanning the flame of price growth in the popular neighborhood, and that’s probably not going to wane anytime in the foreseeable future. That’s according to a report released yesterday by New York brokerage MNS.
“As Chelsea becomes an office destination for massive multinationals like Google, rents can be expected to continue on their upward trajectory,” MNS writes in the report.
The average rent in Chelsea rose 4.5 percent from last year in May, with non-doorman one-bedroom apartments renting for an average of $3,275 per month.
Due to a number of over-sized and highly-priced two-bedroom rentals hitting the market, the average rental price for a non-doorman unit in Chelsea increased by 1.5 percent to $3,413 month-over-month in May.
Over the last month, the average rent in Manhattan fell 0.52 percent from $3,964.79 to $3,944.35 in May. Overall rental prices in Manhattan were down 0.66 percent year-over-year in May.
Notably, overall rents were down substantially from last year in several Manhattan neighborhoods in May, including FiDi (5.1 percent), Midtown East (5.2 percent) and Gramercy Park (3.1 percent).
In addition to Chelsea, rents were up 2.1 percent annually in the nearby Greenwich Village area.
Tribeca was home to most expensive rentals in the borough in May, with non-doorman studios renting for $5,361 and one-bedrooms averaging $5,997. Overall rents in trendy Tribeca were up 7.1 percent annually in May.
Conversely, Harlem was the most affordable, with non-doorman studio and one-bedroom apartments averaging $1,910 and $2,295, respectively. Harlem rents were up 1 percent from last year in May.
Meantime, across the river in Brooklyn, overall rents increased 1.3 percent monthly to $2,823.77 in May. Nearly every tracked Brooklyn neighborhood recorded overall rental price growth this past month with a few exceptions.
The most noteworthy trend in the borough was seen in Prospect Lefferts Gardens — an area beginning to heat up and see a bump in its number of new developments — where overall average rents were up 6.8 percent from last year. Last month, overall rents were up 7.2 percent annually.
Click here to read the entire report.