Record Number of Deals Offer Free Rent to Woo Tenants in NYC, Studies Say
(DNAINFO) Amy Zimmer | December 8, 2016 — Landlords are offering more incentives such as a free month’s rent, reports find. But is it enough?
Though the holiday season is often the best time to find a deal in the rental market, this year there are even more deals out there as inventory continues to rise.
Renters aren’t necessarily biting though, experts say.
Concessions — such as giving a free month’s rent or paying the broker’s fees — are at record high numbers in Manhattan and Brooklyn, according to Douglas Elliman’s analysis of November deals.
More than 25 percent of Manhattan transactions had some sort of concession from the landlord to sweeten the pot, the report released Thursday said. That record was up from 13.5 percent a year ago.
Brooklyn’s share of rentals with incentives from owners also hit a record.
More than 15 percent of deals had some sort of carrot to lure renters, which was more than double the 6.6 percent of such transactions last year.
Though the number of rentals with concessions spiked, the actual size of the concessions barely budged.
In Manhattan, the incentive averaged about 1.2 months of free rent, and in Brooklyn, it was about 1.6 months.
“The market share for concessions is broader, but the amount itself being offered doesn’t seem to be expanding,” said Jonathan Miller, the real estate expert who authored the report.