Douglas Elliman Real Estate, the largest brokerage in the New York Metropolitan area and the second largest independent residential real estate brokerage in the United States by sales volume, today releases its August 2019 Rental Market Report for Manhattan, Brooklyn and Queens. The report shows more of the same trends that have occurred so far this year in Manhattan and Brooklyn, with rents rising and concessions falling.Concessions were down in Queens as well for the fifth time in six months, but with price trends also falling.

Rental price growth accelerated across all unit sizes and market segments in August.The results were similar in Brooklyn where the median rental price rose to $3,015, setting a record for the third month in a row. The market share in concessions dropped again as it has every month so far in 2019.

“This has been a great year for the rental market, and this month was no exception,” said Hal Gavzie, Executive Manager of Leasing for Douglas Elliman Real Estate. “While landlord concessions are still relatively high, they have been steadily falling over the past few months as rentals in New York City continue to be buoyed by the weaker sales markets in the region. It looks like the trend of rising price growth in Manhattan and Brooklyn will continue through the end of the year and beyond.”

In Queens, the median rental price declined for the second straight month and for the third time this year. With concessions down, the number of new leases also fell in the borough.

“Queens continues to separate itself a bit from the more consistent growth trends in the Manhattan and Brooklyn markets,” said Jonathan Miller, President and CEO of Miller Samuel Inc. and the author of the report. “It will be interesting to see if the Queens market syncs up with the other boroughs as we close out 2019.”

_____________________________________________________
MANHATTAN RENTAL MARKET HIGHLIGHTS
Overview

“All three price trend indicators rose above the year ago result for the third straight month as concessions continued to slip.”

- Rental price growth moved higher across all bedroom sizes and market segments

- The market share of concessions declined annually for the seventh time in eight months

- Year over year median rent growth was flat above $10,000 and declined above $15,000.

- The luxury entry threshold hasn’t seen a year over year decline in 2019

- New development median rent was essentially flat as existing median rents rose sharply

Key Trend Metrics (from same period last year)

(Face Rent)
- Median rental price 2.9% to $3,500

- Rental price per square foot rose 4.2% to $69.76
- Average rental price increased 4.1% to $4,206

(Net Effective Rent – includes concessions)
- Median rental price rose 3.4% to $3,423

- Share of new rental transactions with OP or rent concessions was 31.9%, down from 34.7%
- Size of concession was 1.2 months of free rent or equivalent, down from 1.3 months

- Manhattan vacancy rate was 1.95% up from 1.58%
- Number of new leases fell 10.7% to 6,544

- Listing inventory rose 0.6% to 5,646
- Days on market was 24, down from 27
- Listing discount was 1.1%, down from 1.5%

______________________________________________________
BROOKLYN RENTAL MARKET HIGHLIGHTS

Overview

“Price trends continued to set new records despite each month in 2019 saw a year over year drop in concession market share.”

- New development concession market share remained double that of existing rentals

- Studio median sales price reached a new record

- Net effective median rent rose year over year for the ninth straight month

Key Trend Metrics (from same period last year)

(Face Rent)
- Median rental price was $3,015 up 2.2% [record]
- Rental price per square foot rose 2.3% to $47.97

- Average rental price rose 8.4% to $3,507 [record]

(Net Effective Rent – includes concessions)
- Median rental price rose 2.5% to $2,919
- Share of new rental transactions with OP or rent concessions was 38%, down from 42.1%
- Size of concession was 1.4 months of free rent or equivalent, unchanged

- Number of new leases slipped 0.7% to 1,655

- Listing inventory fell 11.9% to 1,688
- Days on market was 25, down from 26
- Listing discount was 1%, unchanged

______________________________________________________
QUEENS RENTAL MARKET HIGHLIGHTS

Overview
[Northwest Region]

“Price trends continued to weaken despite the sliding market share of landlord concessions.”

- The market share of landlord concessions fell year over year for the fifth time in six months

- Net effective median rent fell annually this month for the third time in 2019

- Median rental price has fell year over year for studios and 1-bedroms while rising for larger apartments

Key Trend Metrics (from same period last year)

(Face Rent)
- Median rental price declined 1.2% to $2,960
- Rental price per square foot declined 3.1% to $49.45

- Average rental price rose 0.4% to $3,089

(Net Effective Rent – includes concessions)
- Median rental price decreased 1.9% to $2,866
- Share of new rental transactions with OP or rent concessions was 36%, down 38.6%
- Size of concession was 1.5 months, up from 1.1 months

- Number of new leases fell 20.5% to 311

- Listing inventory declined 14.7% to 360
- Days on market was 29, up from 22
- Listing discount was 0.6%, up nominally from 0.4%

- New development market share was 33.4%, up from 23.5%

About Douglas Elliman Real Estate

Established in 1911, Douglas Elliman Real Estate is the largest brokerage in the New York Metropolitan area and the second largest independent residential real estate brokerage in the United States by sales volume. With more than 7,000 agents, the company operates approximately 120 offices in New York City, Long Island, The Hamptons, Westchester, Connecticut, New Jersey, Florida, California, Colorado, Massachusetts and Texas. Moreover, Douglas Elliman has a strategic global alliance with London-based Knight Frank Residential for business in the worldwide luxury markets spanning 60 countries and six continents. The company also controls a portfolio of real estate services including Douglas Elliman Development Marketing, Douglas Elliman Property Management and Douglas Elliman Commercial. For more information on Douglas Elliman as well as expert commentary on emerging trends in the real estate industry, please visit elliman.com.