The Manhattan rental market is now becoming the dichotomy that the sales market has been for the last few years. The luxury rental market is surging in value due to more buyers turning into renters. While the luxury sales market has been in a buyer’s market for the last 3 years,some buyers have paused and decided to rent instead. Also, as a result of the uncertainty of the recent federal tax reform, anecdotal evidence suggests that the Manhattan luxury sales market didn’t do well in November,December as the Manhattan luxury rental market surged in January.
On the other hand, the median Manhattan rental, of $3275 is dipping in price. New inventory and the market cycle has led to nearly 50% of the apartments being rented with a concession like the owner paying the real estate broker or a free month’s rent.
The Author- Brian Silvestry , a licensed real estate broker, has been representing clients in sales and purchases of residential and commercial real estate since 1999. He has sold in every Manhattan neighborhood from Battery Park City to Washington Heights.