(Bloomberg) — Manhattan apartment rents unexpectedly declined in March after months of increases, though it’s unlikely to be a sign of a softening market.
New leases were signed at a median of $4,100, down 1.8% from a year earlier, according to appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate. It was the first time in four months that rents fell on an annual basis and an unusual twist at the tail end of winter, when prices tend to begin climbing toward their traditional summertime peaks.
Rents haven’t moved much since December, when the median reached $4,050. Additional small increases followed in January and February.
“I see this more as an argument about stability,” Jonathan Miller, president of Miller Samuel, said of the March decline. “The market’s relatively flat.”
One reason prices slipped last month might be that competition eased. The number of available units rose significantly – by 20% from last March – while new leases fell 1.8%. However, the vacancy rate declined, meaning there isn’t a supply surplus, Miller said.
Leasing in Brooklyn and Queens, meanwhile, surged to records. Brooklyn new leases jumped 46% from a year earlier to 3,082 deals, while the median rent rose by $2 to $3,495. In northwest Queens — the neighborhoods closest to Manhattan — 704 leases were signed, a 42% increase from last March. The median rent was down 3% to $3,200.
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