Manhattan rents end record streak as Brooklyn notches new high

"Median rent for a new, brokered lease in Manhattan last month fell to $4,600, according to the monthly rent report from Douglas Elliman and Miller Samuel. That's a 2 percent decline from the peak reported in July. So ends a period of record-high prices that began in February. The numbers reflect the forces beginning to moderate rents in the city, including falling mortgage rates. But just because rents aren't rising, doesn't mean they're likely to fall significantly, according to report author Jonathan Miller."

"Manhattan rents in August were still the third-highest in history and have increased more than 8 percent in a year. Pretty significant price growth is being maintained, said Miller. Thirty-year mortgage rates fell to their lowest level since October last month. When those rates come down, that entices would-be renters to consider buying a place of their own and, in turn, removes some demand from the rental market."

"But it's still fairly surprising that a new record wasn't set in August, considering it's typically a high-demand season, according to Miller. Rents started banging against the wall of records beginning in January, he said. That's what makes this year so unusual is that it's had a defiance of seasonality. The Federal Reserve is widely expected to cut interest rates at its meeting next week, which could moderate mortgage rates and potentially rents further."

Median rent for a new, brokered lease in Manhattan fell to $4,600 in August, a 2 percent decline from July's peak. Rents in August remained the third-highest in history and rose more than 8 percent year-over-year. Falling thirty-year mortgage rates, which reached their lowest level since October, are enticing some renters to buy and reducing rental demand. The Federal Reserve is widely expected to cut interest rates, which could moderate mortgage rates and potentially rents further. The FARE Act banning broker fees charged to tenants went into effect in June. Listing inventory fell 10 percent month-over-month in Manhattan and 13 percent year-over-year as brokers and landlords adjust. The Elliman data covers only new leases and does not capture other market movements.

Read at therealdeal.com