According to Douglas Elliman’s latest market report, landlord concessions (covering broker’s fees, offering free months’ rent, doling out $1,000+ giftcards) have doubled over the past year for Manhattan and Brooklyn rentals, coinciding with a roughly 30 percent increase in inventory in both of the boroughs.
Jonathan miller, author of the report, told DNAinfo, “There’s just been more product brought into the market through more development. More inventory has brought more concessions, more modest price growth and kept vacancy rates elevated. This has been a five-year development boom. It’s already having an impact.”
Looking specifically at Manhattan, in July of last year, 5.3 percent of new leases were afforded concessions, whereas this year that number rose to 11 percent. And listing inventory rose to the highest it’s been in more than seven years, hitting 7,681, compared with 5,893 last year. Similarly, the vacancy rate of 2.5 percent is the highest for the month in nine years.
In Brooklyn, 9.5 percent of new leases came with concessions this year as compared to 5.6 percent last year. Listing inventory also hit a seven-year high of 2,424.
Read through the full Douglas Elliman report (pdf) here.
CityRealty.com has been tracking concessions in all of New York’s major buildings in all five boroughs. The below map highlights where potential leasers can find the best bargain opportunities.