NYC Average Rents Drop, Rise In Long Island And Newark, Report Says
As job growth stagnated and new supply flooded the market, apartment rents in NYC declined last month, according to a report from market research and analysis firm Axiometrics.
With average rent dropping from $3,046 to $3,042, annual effective rent growth for the NYC-Jersey City-White Plains area was negative for the second straight month, at -0.3%. Occupancy (shown) was at an impressive 96.9%, a 0.2% jump from last month but a 0.1% decrease from August 2015.
More specifically, while Manhattan’s average rents dropped the most dollars wise ($4,448 in July to $4,430 in August), Brooklyn had the worst annual effective rent growth, coming in at -1.6%, particularly hash after its positive July (0.6%) and massive August 2015 (3.9%).
Despite having its average rent drop from July, Queens was the only borough to have positive rent growth (1.5%) year-over-year.
“Though job growth is moderate in New York, it’s not enough to absorb the new units coming into the market,” Axiometrics analytics SVP Jay Denton says. “With a high volume of new units coming to market, especially in Manhattan and Brooklyn, the formula for decreased rents is there.”
The average rents and rent growth were positive for Long Island and Newark, with Naussau and Suffolk counties’ rent jumping 3.7% from the same time last year and Newark jumping 2.6%. Occupancy also declined for Long Island, but remained the same for Newark.
New York’s declining rents are a stark contrast from the national average, which is growing at 2.9%, but pales in comparison to NYC’s prices, averaging $1,293.