Manhattan Rents Drop for Fifth Straight Month

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The decreases in median apartment rents in Manhattan continued into the new year, with rents dropping for the fifth consecutive month. 

The median rental price slipped 1.1 percent year-over-year to $3,114 in January, according to the latest report from Miller Samuel prepared for the Douglas Elliman, the brokerage. 

Although rental price declines remained small, they've been dropping since last September. On the other hand, incentives from landlords -- one month of free rent or its equivalent -- increased to a 13.1 percent market share from five percent in the same period last year. 

January's vacancy rate increased to 1.81 percent from 1.54 percent the prior year. However, it was lower than the near record high of 2.79 percent the previous month, according to the report. 

The number of new rentals fell 36.6 percent to 2,999, mostly because "more tenants signed lease renewals rather than trying elsewhere," the firm states.

In Manhattan, larger units, including those in new development and luxury rentals outpaced the overall market. The median rental price for new apartments increased 16.6 percent to $4,475 and 5.3 percent to $8,000 for luxury apartments, compared to the same period last year. 

The same report highlighted the rental market in Brooklyn, which experienced a 33.5 percent increase in new rentals. This reflects tenant resistance to increasing rents, according to the report. 

The median rental price in Brooklyn increased 12 percent to $2,830 in January, compared to the previous year.