NEW YORK
,
Dec. 16, 2020
/PRNewswire/ — New York City rents have fallen more this year than they did during the Great Recession, according to StreetEasy’s
November 2020
Market Reports.
Driven by the Covid-19 pandemic,
Manhattan
rents dropped the most out of the three boroughs analyzed — falling a whopping 12.7% year over year
i
. In
November 2020
, the median asking rent in
Manhattan
reached a 10-year low of
$2,800
. During the Great Recession,
Manhattan
rents decreased by about 10%.
In
Brooklyn
, rents dropped 6.3% year over year, and the median asking rent was
$2,400
. After the 2008 financial crisis, rents in
Brooklyn
fell by around 5%
.
Meanwhile,
Queens
saw a 5.7% annual decline in rents in November. This was a record large drop for the borough, where rents remained
relatively stable
during the Great Recession. The median asking rent in November was
$2,100
.
Prior to the pandemic,
NYC
rents had been steadily rising for about a decade. But the
economic fallout
from Covid-19 has taken a severe toll on the market. Our recent
2021 predictions report
noted that a weak economy results in a weak rentals market, which is reflected in the latest data.
While rents plummeted, rental inventory continued to pile on. In November, there were more than double the number of rental units available than at the same time last year in
New York City
— a net increase of nearly 37,000 homes.
“We expected the rental market to match the weakness seen during the Great Recession, but the fact that the market has surpassed that level in less than one year shows how serious the crisis caused by the pandemic has been,” said StreetEasy Economist
Nancy Wu
.
“The rollout of COVID-19 vaccines and plenty of great rental deals will be the catalyst for many to return to the city, but we’re still a long way from the city’s return to normal. Until that happens, inventory will remain high and renters will continue to enjoy deals that were unheard of a year ago.”
See below for additional market trends across
Manhattan
,
Brooklyn
, and
Queens
.
One in Three Midtown Manhattan Rentals Were Discounted in November
The share of apartments that had a rent cut in November increased in all five submarkets in
Manhattan
, but Midtown
ii
led the way, with 30.7% of landlords discounting the monthly rent on their units. That was an increase of 8.4 percentage points from last year. Boroughwide, the share of rent cuts rose by 5.9 percentage points year over year, to 27.2% in Manhattan.
Brooklyn Rents Fell Furthest in the Most Expensive Neighborhoods
The median asking rent in
Northwest Brooklyn
iii
, the borough’s most expensive submarket, was
$2,800
— the lowest it’s been in eight years. Compared to last year, rents were down 5.1% in these neighborhoods. There were 21,670 rentals on the market in
Brooklyn
in November, an increase of 134% from last year.
Queens Saw the Slowest Growth in Rental Inventory
Rental inventory across the borough was 75% higher than last year in
Queens
. While this was a sharp increase, it was the smallest of all boroughs analyzed.
Queens’
population tends to be more stable and less transient, which is why housing metrics do not fluctuate as much as in other boroughs. Mirroring the rest of the city,
Queens
rents did fall year over year, but at the slowest rate in the city, at 5.7%.
View all
StreetEasy Market Reports
for
Manhattan
,
Brooklyn
, and
Queens
, with additional neighborhood data and graphics. Definitions of StreetEasy’s metrics and monthly data from each report can be explored and downloaded via the
StreetEasy Data Dashboard
.
About StreetEasy
StreetEasy is reimagining the way people buy, sell, and rent homes in
New York City
and
New Jersey
. Used more than any other local real estate platform, StreetEasy’s website and mobile apps provide vetted and verified listings, plus intuitive search tools and data-driven guides to help people unlock the opportunity of living here. Consumers and real estate professionals can stay up-to-date on the latest real estate trends through
StreetEasy’s Market Reports
and explore and download market data for free on the
StreetEasy Data Dashboard
. Launched in 2006 and based in NoMad,
Manhattan
, StreetEasy is owned and operated by Zillow Group (NASDAQ: Z and ZG) and is a registered trademark of Zillow, Inc.
i
The StreetEasy Rent Indices are monthly indices that track changes in rent for all housing types and are currently available from
January 2007
in
Manhattan
,
January 2010
in
Brooklyn
, and
January 2012
in
Queens
. Each index uses a repeat-sales method similar that used to calculate the StreetEasy Price Indices. The repeat method evaluates rental price growth based on homes in a given geography that have listed for rent more than once. More details on methodology
here
.
ii
The Midtown submarket includes
Roosevelt Island
, Midtown, Central Park South,
Midtown South
,
Midtown East
,
Midtown West
,
Murray Hill
,
Sutton Place
, Turtle Bay, Kips Bay,
Beekman
, Hudson Yards, Hell’s Kitchen.
iii
The
Northwest Brooklyn
submarket includes
Downtown Brooklyn
, Fort Greene, Brooklyn Heights, Boerum Hill, Dumbo, Vinegar Hill,
Red Hook
, Gowanus, Carroll Gardens, Cobble Hill, Columbia St. Waterfront District,
Clinton Hill
.
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SOURCE StreetEasy
