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Rents in family-dense NYC neighborhoods grew five percent faster over the past 10 years than rents in areas with fewer families, according to a new StreetEasy study
New York, NY – Aug. 27, 2018 (PRNewswire)
Since the end of the financial crisis(i), monthly rents for New York City apartments listed on StreetEasy increased 31 percent or $653(ii), according to StreetEasy’s annual rent affordability study. While the pace of rent growth has varied widely across neighborhoods — from 15 percent in Ridgewood, Queens, to 45 percent in Ditmas Park, Brooklyn — rents are growing fastest in areas with higher shares of low-income residents and renter households with children(iii).
Rents in neighborhoods where families make up at least 25 percent of residents grew 32 percent on average, 5 percent faster than neighborhoods where less than one quarter of residents had children. Manhattan neighborhoods including Midtown, Gramercy Park, and the Financial District, where less than 10 percent of renters have children, were among the neighborhoods with the slowest-growing rents. Outer-borough areas such as Ditmas Park, Elmhurst, and University Heights, where more than a third of renters have children, were among the neighborhoods where rents rose the most.
Rent increases have also hit low-income households especially hard. In the neighborhoods with household incomes below the city’s 2010 median of $50,285, rents grew by 33 percent. Over the same 10-year period, rents in neighborhoods with an above-median income grew by just 27 percent — 6 percent slower. For a household spending $2,000 per month on rent in 2010, this 6 percent additional growth adds up to an additional $125 per month or $1,500 per year in 2018. In neighborhoods like Prospect Lefferts Gardens and Midwood, dozens of apartments now ask for rents more than 40 percent higher than at the beginning of the decade.
“Rents have risen in the city, but not all New Yorkers have felt the same effects,” says StreetEasy Senior Economist Grant Long. “Residents who already struggle to make ends meet and renters dealing with the high costs of childcare are predominantly living in areas that see the most dramatic rent growth. These are often residents who have little financial flexibility to begin with. As a greater share of their incomes goes towards rent, it’s increasingly difficult for families to save for a down payment on a home, their children’s college education, or emergencies.”
The StreetEasy study also reveals some of the impacts of zoning changes around the city. Seven of the top 10 neighborhoods with fastest rent growth were in part downzoned over the last two decades, limiting growth in the supply of housing. Meanwhile, three of the 10 neighborhoods with slowest rent growth — Long Island City, Dumbo, and the Upper West Side — were in part upzoned between 2007 and 2009. Taken together, these findings suggest that the zoning-related supply factors in some areas of the city may have played a role in mitigating or accelerating overall rent growth.
About StreetEasy
StreetEasy is New York City’s leading local real estate marketplace on mobile and the web, providing accurate and comprehensive for-sale and for-rent listings from hundreds of real estate brokerages throughout New York City and the NYC metropolitan area. StreetEasy adds layers of proprietary data and useful search tools to help home shoppers and real estate professionals navigate the complex real estate markets within the five boroughs of New York City, as well as Northern New Jersey.
Launched in 2006, StreetEasy is based in the Flatiron neighborhood of Manhattan. StreetEasy is owned and operated by Zillow Group (NASDAQ :Z and ZG).
StreetEasy is a registered trademark of Zillow, Inc.
(i) For the purpose of this analysis, StreetEasy examined rent growth between January 2010 and January 2018.
(ii) Rent growth in New York City and the 88 neighborhoods in this analysis were estimated using the StreetEasy Rent Index. More on the methodology here: https://streeteasy.com/blog/methodology-price-and-rent-indices/
(iii) The share of renter families and median income for residents in each neighborhood were estimated using the U.S. Census American Community Survey, five-year estimates.
(iv) Median asking rent based on active StreetEasy rental listings in January 2018.
Rising discounts and falling prices put power in the hands of NYC buyers, according to the Q2 2018 StreetEasy Market Reports
New York, NY – July 25, 2018 (PRNewswire) Sales inventory reached new highs across the city over the last quarter, leading to a record number of homes offering price cuts in Manhattan and Brooklyn. The share of homes with a price cut rose in every submarket across the city, led by the Upper East Side(i), where one in three homes for sale received a price cut, according to the Q2 2018 StreetEasy Market Reports(ii).
Amid higher inventory, sales prices started to cool. The StreetEasy Price Index(iii) fell 1.1 percent in Manhattan to $1,160,419 and stagnated in Brooklyn at $724,733. This drop in Manhattan home prices is the largest year-over-year decrease since the financial crisis(iv). Queens prices bucked this trend, increasing 7.3 percent to $530,556 – the highest level on record.
“The dynamics of the city’s real estate market have favored renting over buying for some time now, though the tide may be starting to turn,” says StreetEasy Senior Economist Grant Long. “New Yorkers with the means for a down payment now have more options to choose from than at any point in the past seven years — and this trend isn’t just contained at the high-end, where we’ve been seeing rising inventory for several years now. Heading into the fall, buyers are in a strong position to strike a deal and can afford to shop around, wait for the right home, and negotiate aggressively.”
See below for additional sales and rental market trends across Manhattan, Brooklyn and Queens.
Q2 2018 Key Findings — Manhattan
Q2 2018 Key Findings — Brooklyn
Q2 2018 Key Findings — Queens
The complete StreetEasy Market Reports for Manhattan, Brooklyn and Queens, with additional neighborhood data and graphics, can be viewed at streeteasy.com. Definitions of StreetEasy’s metrics and monthly data from each report can be downloaded at streeteasy.com.
About StreetEasy
StreetEasy is New York City’s leading local real estate marketplace on mobile and the web, providing accurate and comprehensive for-sale and for-rent listings from hundreds of real estate brokerages throughout New York City and the NYC metropolitan area. StreetEasy adds layers of proprietary data and useful search tools to help home shoppers and real estate professionals navigate the complex real estate markets within the five boroughs of New York City, as well as Northern New Jersey.
Launched in 2006, StreetEasy is based in the Flatiron neighborhood of Manhattan. StreetEasy is owned and operated by Zillow Group (NASDAQ: Z and ZG).
StreetEasy is a registered trademark of Zillow, Inc.
(i) The Upper East Side submarket includes Lenox Hill, Yorkville, Carnegie Hill, Upper Carnegie Hill and Upper East Side neighborhoods.
(ii) The StreetEasy Market Reports are a monthly overview of the Manhattan, Brooklyn and Queens sales and rental markets. Every three months, a quarterly analysis is published. The report data is aggregated from public recorded sales and listings data from real estate brokerages that provide comprehensive coverage of Manhattan, Brooklyn and Queens, with more than a decade of history for most metrics. The reports are compiled by the StreetEasy Research team. For more information, visit streeteasy.com. StreetEasy tracks data for all five boroughs within New York City, but currently only produces reports for Manhattan, Brooklyn and Queens.
(iii) The StreetEasy Price Indices track changes in resale prices of condo, co-op, and townhouse units. Each index uses a repeat-sales method of comparing the sales prices of the same properties since January 1995 in Manhattan and January 2007 in Brooklyn and Queens. Given this methodology, each index accurately captures the change in home prices by controlling for the varying composition of homes sold in a given month. Levels of the StreetEasy Price Indices reflect average values of homes on the market. Data on the sale of homes is sourced from the New York City Department of Finance. Full methodology here: streeteasy.com.
(iv) The StreetEasy Manhattan Price Index was down 2.3 percentage points year-over-year in May 2010
(v) StreetEasy has tracked annual changes in the Manhattan Rent Index since 2011.