REZI Releases NYC Rental Market Insights: July-December 2021

NEW YORK, Feb. 15, 2022 /PRNewswire/ -- REZI, the pioneer of the "Occupancy-as-a-Service" model to help property owners minimize vacancy costs, today releases the results of their latest Market Insights Report, an analysis of NYC's rental market trends through real-time neighborhood performance data for the last six months of 2021.

Using over 100 data points sourced from a collection of proprietary and public resources, REZI compares borough and neighborhood-level data across average rental price, days on market, (DoM), and average vacancy loss for all currently marketed apartments to provide a complete view of NYC's rental market.

Key Terminology:

• Days on Market (DoM): represents the amount of time a vacant unit has been marketed.
• Vacancy Cost: represents the amount of income lost due to vacancy — inclusive of Days on Market, tenant move-in delays, and placement fees.
• Listing Rent: represents the monthly net-effective rent / the amount of rent collected adjusted for vacancy cost.

Topline Findings for an Average NYC Apartment:

From Average Days on Market and Average Listing Rent, it's clear to see that the New York City rental market is undoubtedly rebounding from the peak of the COVID-19 pandemic.

Despite this progress, there is still more improvement to be made to return to true pre-pandemic levels, especially for Avg. Listing Rent and Avg. Discounts — which are still performing worse than December 2019 levels throughout several neighborhoods across the city:

• Average Days on Market: 32
• Average Listing Rent: $3,509
• Average Vacancy Cost: $8,987

Borough Breakdown:

• Borough with best Year-over-Year Improvement: Manhattan, with Days on Market down by over 35% and Listing Rents up by 37.0%
• Best Performing Borough: Brooklyn, with the lowest Days on Market at an average of 24 days.
• Worst Performing Borough: The Bronx, with the smallest Year-over-Year change in Days on Market and Listing Rents and second-highest Days on Market at 37 days on average.

Listing Rent Findings:

Manhattan is the top-performing borough regarding improvement in Average Listing Rent over the past year — where the borough saw a 37% increase YoY.

While some neighborhoods like SoHo - Tribeca saw +55% improvements in Avg. Listing Rent — that success wasn't evenly distributed across the entire borough. Throughout all of Harlem, Washington Heights, and Inwood Avg. Listing Rent increased by less than 10% YoY and is still largely below pre-pandemic levels and expectations.

Likewise, all neighborhoods throughout The Bronx saw a similar performance, with one neighborhood — Kingsbridge - Riverdale — seeing a YoY increase of only $16.

Jamaica, Queens, was the only neighborhood across all of New York City that saw a decrease in Average Listing Rent — although it was minimal by only $21 from $1,824 in December 2020.

The most expensive Listing Rents were found in SoHo - Tribeca in Manhattan at an average of $7,452, followed by Chelsea - Union Square at an average of $5,236.

The cheapest Listing Rents were found in Jamaica, Queens, at an average of $1,803, followed by Bensonhurst - Bath Beach in Brooklyn at an average of $1,810.

Days on Market Findings:

Manhattan saw the largest decrease in Days on Market at the borough-level, with the Lower East Side at the neighborhood-level seeing a 50% decrease Year-over-Year — down by 42 days from 68 in December 2020.

Additionally, 6 of the top 10 neighborhoods with the largest decreases in Days on Market were located within Manhattan.

Despite this, Manhattan's West Village and Morningside Heights neighborhoods were tied for having the longest Days on Market across all of New York City at an average of 47 days.

The shortest Days on the Market was found in Queens' Bayside - Whitestone neighborhood at an average of just 13 days, followed closely by Bushwick in Brooklyn at an average of 15 days.

Further out neighborhoods in Brooklyn saw the worst Days on Market performance, with Gravesend - Midwood seeing a 50% increase in Average Days on Market and Bensonhurst - Bath Beach seeing a 35% increase.

Only 8 neighborhoods across all of NYC saw a Year-over-Year increase in average days on market and 5 (62.5%) of them were located in Brooklyn, 2 in Queens, and 1 in The Bronx.

Vacancy Cost Findings:

With increased Listing Rents throughout the city, all boroughs saw broad increases in Average Vacancy Costs, although several neighborhoods were able to leverage substantial decreases in Average Days on Market to drive down Vacancy Costs.

Fordham in The Bronx saw the largest % decrease in Average Vacancy Cost in 2021 — down by $2,205 from $6,518 in December 2020.

Meanwhile, Long Island City in Queens saw a significant increase in Average Vacancy Cost — up by $1,706 from $5,597 in December 2020.

The highest vacancy costs in the city are found in SoHo - Tribeca at an average of $22,497, followed by the West Village at an average vacancy cost of $15,444 — driven by relatively high Days on Market (45 days and 47 days respectively) and increased Listing Rents ($7,452 and $4,872 respectively).

The lowest vacancy costs in NYC are found in Jamaica, Queens, at an average of just $4,113 — largely driven by a low Average Listing Rent ($1,803) and a decent Average Days on Market (24 days).

*For the full report, please visit https://leasing.rentrezi.com/market-insights/new-york/12-2021-report 

About REZI
Founded in 2017, REZI leverages state-of-the-art leasing and financial technology to improve and optimize the renting experience for tenants and increase effective rental prices for property owners. REZI is a privately held company based in New York City.

Media Contact:
Loren Pomerantz
917-902-0219
[email protected]

SOURCE REZI