February was an excellent time to be an apartment-hunter in Manhattan and Brooklyn: Rents dipped across both boroughs, but inventory dropped, too.
The Corcoran Group recently released our Manhattan and Brooklyn Rental Market Analysis for February 2021. Rents declined overall in both boroughs – most notably in Manhattan. However, the vacancy rate fell to the lowest level seen in 5 months, and the prevalence of move-in incentives continues to diminish. While the market may continue to strengthen as 2021 progresses, great values remain for New York renters.
During the month, Manhattan rents were down overall when compared to January. Pricing for studios fell 14%, while one-bedroom rents declined 3%. Meanwhile, rents for two-bedroom apartments were down 13%. In contrast, the three-bedroom average rent rose 10%.
In Brooklyn, February pricing trends also varied by apartment type. Average rents for studio and one-bedroom units remained relatively unchanged when compared to the preceding month. For two- and three-bedroom apartments, rents declined 1% and 3%, respectively.
The vacancy rate declined in February to the lowest level since August 2020 – falling to 4.36% from 4.74% in January. However, available inventory remains substantially higher versus the same period last year. In February 2020, 1.11% of apartments were vacant.
Owners’ use of move-in incentives continued to slow in February 2021. During the month, 43% of rental transactions brokered by The Corcoran Group offered a free month (or more) of rent and/or payment of the broker fee to entice new tenants– down from 48% in January.
Additional relevant findings of the February 2021 Corcoran rental report are outlined below.
- In February 2021, the average monthly rental price for a Manhattan studio was $1,577. For one-bedroom homes, it was $2,585. For two-bedroom units, the average rent was $3,341, and the average three-bedroom apartment rented for $5,366.
Brooklyn studio apartments (in the 14 neighborhoods studied) rented for $2,227 per month on average. For Brooklyn one-bedrooms, the average rent was $2,673 – while rents for two- and three-bedrooms clocked in at $2,982 and $3,175, respectively.
- The most expensive Manhattan neighborhood for renters in February was SoHo/Tribeca with a median rent of $3,750. Midtown East was the second-priciest area – with a median rent of $3,200.
For Brooklyn, DUMBO was the most expensive neighborhood in February with a median rent of $3,777 – followed by Boerum Hill, which had a median rent of $2,956 per month.
- With a vacancy rate of 3.28%, Midtown West was the Manhattan neighborhood with the least inventory in February 2021, followed by Gramercy at 3.33%. On the other end of the spectrum, the vacancy rate was highest during the month in the East Village (at 8.01%) and Midtown East (at 7.99%).