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 September 2019 Rental Market Report for Manhattan, Brooklyn and Queens. The report shows a continuation 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 sixth time in seven months, but with all price trend indicators alsofalling year-over-year.

Rental price trends in Manhattan have risen year-over-year throughout 2019, with the median rental price edging up to $3,500 in September.Prices are also steadily rising in Brooklyn where the net effective median rental price increased for the tenth straight month. The market share in concessions continued to slide in both boroughs, consistent with the results from all earlier months of the year so far.

“The strength of the rental market has allowed landlords to keep raising price this year, with the September numbers reconfirming this again,” said Hal Gavzie, Executive Manager of Leasing for Douglas Elliman Real Estate. “We’ve seen concessions inching lower and lower over the past several months, but they are still significant enough to be compelling to renters and drive strong leasing activity – especially in Brooklyn. And as long as the sales market in the region remains soft, demand in the rental market should remain strong.”

Concessions were down in Queens, just as in Manhattan and Brooklyn, but the overall price trend indicators also declined as a result of a drop-off in new development leasing activity in the borough. The sliding market share of higher priced new development rentals has skewed the overall market lower over the past several months.

“Queens continues to be an outlier in the New York City rental market, but the Manhattan and Brooklyn markets are still thriving,” said Jonathan Miller, President and CEO of Miller Samuel Inc. and the author of the report. “It’s worth noting that in addition to the lower new development rental activity in Queens, the sales market is also much stronger there than in the other boroughs which may also be contributing to this standalone effect.”

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MANHATTAN RENTAL MARKET HIGHLIGHTS
Overview

“Rising rents and falling concessions still define the rental market.”

- Median net effective median rent rose year over year throughout 2019

- Concession market share declined year over year for the eighth time in nine months

- The vacancy rate has increased year over year for three straight months

- Rents generally rose more quickly at the higher price strata

- Doorman median rent rose faster than non-doorman median rent respectively from the year-ago level

- New development median rent rose more quickly than the existing median rent

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

Key Trend Metrics (from same period last year)

(Face Rent)
- Median rental price edged up 0.1% to $3,500

- Rental price per square foot rose 4.8% to $70.36
- Average rental price increased 4% to $4,336

(Net Effective Rent – includes concessions)
- Median rental price rose 0.5% to $3,411

- Share of new rental transactions with OP or rent concessions was 34.3%, down from 37.4%
- Size of concession was 1.2 months of free rent or equivalent, down from 1.3 months

- Manhattan vacancy rate was 1.96% up from 1.51%
- Number of new leases fell 4% to 5,019

- Listing inventory slipped 2.2% to 5,299
- Days on market was 28, down from 29
- Listing discount was 1.5%, down from 1.7%

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BROOKLYN RENTAL MARKET HIGHLIGHTS

Overview

“Rental price trends continued to rise, and landlord concessions continued to slide.”

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

- Concession market share has continued to decline annually throughout 2019

- Median rent by bedroom rose annually for each size category

Key Trend Metrics (from same period last year)

(Face Rent)
- Median rental price was $3,000 up 5.3%
- Rental price per square foot rose 3.4% to $48.40

- Average rental price rose 7.6% to $3,366

(Net Effective Rent – includes concessions)
- Median rental price rose 6.2% to $2,915
- Share of new rental transactions with OP or rent concessions was 34.6%, down from 43.1%
- Size of concession was 1.4 months of free rent or equivalent, unchanged

- Number of new leases rose 8.7% to 1,506

- Listing inventory fell 19.9% to 1,688
- Days on market was 26, unchanged
- Listing discount was 0.9%, down from 1.2%

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QUEENS RENTAL MARKET HIGHLIGHTS

Overview
[Northwest Region]

“Despite the decline in market share of landlord concessions, overall price trend indicators drifted lower.”

- All price trend indicators and new leases fell year over year

- Net effective median rent stabilized after falling year over year in the prior two months

- The market share of landlord concessions fell year over year for the sixth time in seven months

Key Trend Metrics (from same period last year)

(Face Rent)
- Median rental price declined 1.7% to $2,875
- Rental price per square foot declined 1.4% to $51.95

- Average rental price slipped 1.3% to $3,056

(Net Effective Rent – includes concessions)
- Median rental price was unchanged at $2,789
- Share of new rental transactions with OP or rent concessions was 33.6%, down 55.6%
- Size of concession was 1.5 months, up from 1.4 months

- Number of new leases fell 9.6% to 283

- Listing inventory declined 31.9% to 297
- Days on market was 24, up from 23
- Listing discount was 1.1%, down nominally from 1.3%

- New development market share was 31.8%, down from 39.3%

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.