New York rents are growing at a record pace

Although residential property prices in New York have fallen, rental prices across the city have been increasing at the fastest pace since 2016, according to a market survey.

The rent index rose in every neighborhood in Brooklyn, Manhattan and Queens, with the most significant growth observed in some of the most expensive parts of each district, writes Streeteasy. For example, in northwestern Brooklyn there is the fastest growth rate of rents in the city: from last year it grew by 3,5% to 3115 dollars. Monthly rents increased by 100 dollars per year: this is a sign that demand for rental in expensive areas remains high, as potential buyers decide to rent rather than buy.

The rent index in Manhattan and Queens rose to record highs - to 3,0% and 3,5%, reaching 3309 and 2198 dollars, respectively. As in Brooklyn, the most expensive areas in both boros showed the largest increases in rents. Rents in Lower Manhattan (the most expensive area in the city) rose by 2,8% to a new high of 3809 dollars. Rental rates in Northwest Queens, the most expensive in this borough, rose by 2,9%, reaching 2318 dollars.

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As rents reached new highs, sales in some parts of the city declined rapidly, while in others they slowed. In Brooklyn, the StreetEasy Price Index fell by 2,4% to 691 224 dollars, the most significant drop since the 2012 of the year. The rise in prices in Queens slowed down, which was not observed for more than 5 years, while prices remained at the level of 514 233 dollars, while the Manhattan market continued to weaken with a fall in prices by 4,9% - to 1 098 104 dollars.

Key August 2019 Results: Manhattan

• Rental rates have grown at the fastest rates in more than 3 of the year. StreetEasy Manhattan's rental index rose by 3,0%, which was the largest annual increase since February 2016, and rents reached 3309 dollars.
• The rent for a one-bedroom apartment has increased significantly and averaged 233 dollars (by 7,5%) more than last year - or 3350 dollars.
• Housing prices have fallen. StreetEasy Manhattan price index fell by 4,9%, to 1 098 104 dollars, which corresponds to the price levels in April 2015 of the year.
• Supply growth slowed. The number of houses on the market in the area increased by 5,9%, the slowest rate since March 2018.

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August 2019 Key Results: Brooklyn

• Rental rates have grown the most since March 2016. The StreetEasy Brooklyn index rose by 3,5% to 2695 dollars, which was a new record for the area.
• The rental price for a one-bedroom apartment in North Brooklyn has increased - for the first time, the rental price of such an apartment in this area has crossed the threshold of 3000 dollars from 2016 of the year and amounted to 3200 dollars (15,9% more than a year ago).
• Property prices have declined at the fastest pace since 2012. The StreetEasy price index plummeted by 2,4% to 691 224 dollars. This is the biggest decline in prices since August 2012.
• Supply grew at the slowest pace in 2019. In August, there were 13,6% more houses on the market compared to last year - the smallest annual increase at the moment.

August 2019 Key Results: Queens

• Rental rates have risen in all parts of the district. The StreetEasy Queens rental index rose by 3,5% to 2198 dollars. Rent in the most expensive part of Queens (in the northwest) increased by 2,9% - to 2318 dollars, a new high for this area.
• In Northwest Queens, rents for one-bedroom apartments have risen to $ 2195, an increase of 7,1% from last year and higher than the asking rent for similar apartments in Upper Manhattan.
• Prices for the purchase of real estate remained the same. Prices in Queens have not changed — the average remained at the level of 514 233 dollars. Since 2013, prices in the region have been steadily increasing, but August of this year was the second month in a row, when prices remain at the same level.
• Supply in the market has increased. Compared to last year, more 244 (7,6%) more homes were sold in the area.