What goes up, must come down — and in New York City that has led to a decline in the luxury market and higher prices in less expensive areas.
Those areas were the only ones to show "pockets of rent growth," in the January 2017 StreetEasy Market Reports. All others experienced month-over-month declines, with only Upper Manhattan, South Brooklyn and East Brooklyn median rents continuing to rise. The report also showed both Manhattan and Brooklyn starting the year off with declining monthly median rent for the first time since 2010, according to StreetEasy data.
“Manhattan and Brooklyn renters could finally be catching a break in 2017,” said StreetEasy economist Krishna Rao. “Over almost a decade, rents in both boroughs have had strong growth and consistently hit new highs time and time again. Over the last few months the landscape has shifted. The luxury decline seems to be affecting the market in a big way, as the most expensive areas see the greatest rent declines, while competition remains relatively heightened in less expensive areas like Upper Manhattan and South Brooklyn.”
For more on the report, visit here and check out the charts below.