Manhattan’s sluggish sales market has helped the borough’s rental market rebound, according to a StreetEasy report slated to be released Wednesday.
The listings site said its Manhattan index, which excludes newly developed homes, fell to $1.12 million this January, a 4.2 percent drop from last year and the largest annual decline recorded since StreetEasy began tracking the transactions in 2006.
People who under other circumstances may purchase homes in Manhattan are not buying because prices are falling and rising interest rates and tax changes are complicating the environment, according to Nancy Wu, an economic data analyst at StreetEasy.
"Northwest Brooklyn and lower Manhattan, which are some of the places with the highest rents, have rents increasing over time — even though they have stagnated in the past when the sales market was doing better. So that shows that people who could otherwise afford to buy a home are choosing to rent in the most expensive neighborhoods instead," Wu said. "A lot of people are just wary of taking that risk, and there’s so many good rental apartments on the market right now."
Manhattan homes stayed on the market a median of 111 days, with downtown Manhattan listings lingering for a median of 120 days, the longest waiting period since early 2011, according to StreetEasy’s January report.
That analysis found 14.9 percent of Manhattan homes had a reduced price — 2.9 percentage points more than was the case last January.
The company said its rental index for the borough increased 2.6 percent over the past year to $3,204, the fastest increase it recorded since 2016.
Fewer transactions involved a concession from the landlord, such as covering the broker’s fee or waiving a month’s rent, when compared to last January, StreetEasy said.