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Average Manhattan rent drops below $3,000
The average rent in Manhattan has dropped below $3,000 a month for the first time since 2011.
NEW YORK - The average rent in Manhattan has dropped below $3,000 for the first time since 2011.
According to a report from StreetEasy, a record-high number of rent cuts contributed to the average asking rent in Manhattan dropping to $2,990 in the third quarter of 2020.
Discounted rental listings on StreetEasy rose to a record high of 44.7% as landlords attempt to attract tenants.
Available apartment listings in Manhattan increased by 69.8%, with 72,267 listings available during the third quarter, almost 30,000 more than in 2019.
“Renters are no longer willing to pay the commute premium of living in Manhattan when they do not need to commute to an office five days a week,” said StreetEasy Economist Nancy Wu.
While Manhattan saw the largest spike in discounts, the city’s outer boroughs weren’t far behind. Brooklyn and Queens saw the number of discounted rental listings rise to record highs of 30.7% and 26.6%, respectively.
According to StreetEasy, the third quarter of 2020 marked the first time in their records, dating back to 2019 that all three boroughs saw their rents fall. Rent in Manhattan fell 7.8%, in Brooklyn it fell 2.5% and in Queens it fell 2.2%.
“Landlords across the city, but particularly in Manhattan, have to be willing to face some really hard hits if they want to fill their units. They’re being forced to cut the location premium out of their asking price in order to compete with larger and more affordable apartments in the outer boroughs,” Wu said.