Rents Falling in New York City; New Supply Gets Credit

Oshrat Carmiel reports on falling rents in New York City, especially in the borough of Queens, where rents have fallen 12 percent from a year prior.

A report by appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate surveys the New York City rental market, finding renters leaving Manhattan and Brooklyn in many cases to rent in the cheaper parts of Queens. While rent dropped in Queens, the number of rental leeses actually climbed. "New leases in northwest Queens -- Long Island City, Astoria, Sunnyside and Woodside -- jumped 11 percent to 272, the firms said," according to Carmiel.

According to Carmiel, the shifts in the rental market are caused by new supply.

Landlords, who’ve accepted they need to compete to keep their units filled, are working to attract new tenants and offering sweeter renewal terms to keep the ones they have….In Manhattan, 44 percent of all new leases came with a landlord concession, such as a free month of rent or payment of broker fees. In Brooklyn, the share was 51 percent, a record for the borough.

So it's not just Queens that's seeing falling rents. Manhattan and Brooklyn Rents also fell.