Rents in Manhattan appear to be making a slight turn to the cheaper side, according to real estate reports released Thursday.
Surveys issued by Douglas Elliman and Citi Habitats found that the average rents for all types of apartments in the borough last month when compared to August 2015.
Elliman said the average rent went from $4,058 to $4,033 during the 12-month period while Citi Habitats’ report found rents decreased from $3,507 to $3,496 during the same period. Gary Malin, Citi Habitats’ president, said this behavior is atypical of August and could represent a change for the months to come.
“The simple fact is the rental market was overheated and due for a correction — nothing extreme, but enough to get landlords and would-be tenants back on the same page,” he said in a statement.
In addition to the decreasing prices, landlords are doling out more concessions, like a free month’s rent and no broker fees, to fill their vacant pads, the report said. About 12% of new rentals came with concessions in August, 5% more than the same period last year, Elliman said.
Citi Habitats found that 19% of new rentals came with concessions last month, which is 12% more than in August 2015. The real estate company said Washington Heights had the lowest median rent last month with $2,250 while SoHo/TriBeCa had the highest with $5,995.
Elliman found similar trends of decreasing rents in Brooklyn where average rent was $3,219 last month, a 1.5% decline from the price in August 2015. About 10.5% of new rentals offered concessions in August, more than double the amount last year, according to the report.
Despite the signs of a slight market cool-down, home buyers with big wallets are still spending big on luxury Manhattan condos.
A report issued by CityRealty Wednesday found the average condo sale price was $5.2 million in August. The average price per square foot was $2,480, a 26% jump from the same period in August 2015.
The top selling condo in August was a $31.6 million three-bedroom unit at the super tall skyscraper 432 Park Ave., the report said.