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NYC Average Rents Drop, Rise In Long Island And Newark, Report Says

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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.

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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.

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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.”

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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.