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RentHop 2020 Subway Rent Map: Rents Are Dropping at Major MTA Stops

RentHop 2020 Subway Rent Map: Rents Are Dropping at Major MTA Stops

New York’s MTA subway system is an integral part of most New Yorkers’ lives. With as many as 5.5 million riders each weekday, it truly is the backbone of the city. It should be no surprise that it is one of the first things that people consider when looking to rent an apartment. Proximity to the right trains means shorter commutes and more time spent doing what you love. RentHop’s data scientists love maps and rental data, and so we’ve mapped out rental prices by subway stop to assist in your apartment hunting endeavors.

Our key findings this year include:
  • Rents remained the same around 28 MTA stops, increased at 257 stops, and fell at 159, or 36%, stops. This number is 10% higher than in 2019.
  • As landlords were pushed to offer more concessions in response to the lackluster market performance caused by the pandemic, more stops in Manhattan this year experienced price cuts, including 28 St ($3,635, -11.3%), 34 St – Herald Sq($3,600, -7.6%) , 86 St ($2,978, -6.7%) , and Times Square ($3,299, -5.1%).
  • Even with a significant YoY decrease, Union Square continued to be the most expensive stop in the NYC metro area. Median 1BR rent at this stop currently sits at $4,750, 6.8% lower than the same period in 2019.
  • New developments continue to be a key driver of rental rates. In Brooklyn, median 1BR went up at several stops, including 36 St ($3,050, +9.1%) , Hewes St ($3,050, +9.1%), and Marcy Av ($3,150, +5.0%).

The Interactive Map Below Shows All Rents, Stops, and YoY Price Fluctuations

 

Find our map useful? Check out the static map at the bottom for a quick snapshot of the data and for easy sharing.

Major subway hubs like Union Square, Fulton Street, and Atlantic Ave/Barclay’s Center give nearby residents flexibility and convenience when traveling or commuting to different places. They also make it easy to convene and get home from anywhere after a long day of work. It’s no wonder these subway stops ranked among the most expensive stops on the RentHop subway rent map.

Median 1BR Rents at Major NYC Subway Hubs
  • Union Square 14 St (4/5/6/L/N/Q/R/W) – $4,750, YoY -6.8%
  • Times Square 42 St (1/2/3/7/N/Q/R/S/W) – $3,173, -2.4%
  • Grand Central (4/5/6/7/S) – $3,500, -2.8%
  • West 4 St (A/B/C/D/E/F/M) – $3,556, +7.9%
  • Herald Square 34 St (B/D/F/M/N/Q/R/W) – $3,600, -7.6%
  • Fulton St (2/3) – $3,824, +2.9%
  • Fulton St (4/5) – $3,800, +2.8%
  • Fulton St (A/C/J/Z) – $3,805, +3.0%
  • Jay St – Metro Tech (A/C/F/N/R/W) – $3,523, +0.4%
  • Atlantic Ave – Barclay’s Center (2/3/4/5/B/Q) – $3,364, -2.4%
  • Atlantic Ave – Barclay’s Center (D/N/R) – $3,452, +0.1%
  • Broadway Junction (A/C/J/L/Z) – $2,000, +6.7%
  • Jackson Heights – Roosevelt Av / 74 St – Broadway (7/E/F/M/R) – $1,950, +2.6%

36% of MTA Stops Experienced Rent Drops, 10% More than Previous Year

2020 has been a rough year for New York. Due to the COVID-19 pandemic, the unemployment rate in the city skyrocketed 18.3% as of May, according to City Comptroller Scott Stringer. This inevitably had a severe impact on real estate, pushing down rental rates across the city. As people relocate to other metro areas and suburbs, landlords across the boroughs are having trouble filling up the vacant apartments, especially those who own and operate luxury rental buildings.

Compared to only 115 stops in 2019, this year, 159 stops, or 36%, saw price reductions, some of which are in the wealthier neighborhoods in the city. Median 1BR rent dipped 11.3% at 28 St (6 Train), as luxury rental buildings offered more concessions to attract new tenants, including Prism at 50 East 28 Street (YoY -5.2%) and Instrata Gramercy at 290 3rd Ave (YoY -9.3%), which doubled the concessions from one month’s free to two months. Similarly, buildings around 34 St – Herald Square also increased incentives, including EOS at 100 West 31 Street and Epic at 125 West 31 Street, which in turn drove down the rents by 7.6%. Stops in the Upper East Side also experienced notable price fluctuations, with median 1BR rent decreased 8.4% around 96 St (Q) and 6.7% at 86 St (4/5/6).

Gentrification remains a key driver of NYC rental rates. Median 1BR rent jumped 10.1% at 36 St stop (D/N/R Trains), from $1,998 to $2,200. This fluctuation is likely due to the Hyland, a new development launched early this year located at 194 21 St in Brooklyn that features bike storage, gym, parking, and a modern roof deck. Meanwhile, median 1BR rent rose 9.1% at Hewes St (J/M) and 5.0% at Marcy Ave (J/M/Z) respectively, mostly driven by the DIME, a 23-story, 177-unit high-end rental building located at 275 South 5 Street, Brooklyn.

These stops saw some of the largest rent drops on one-bedroom apartments
  • 28 St – 6 Train – $3,635, YoY -11.3%
  • 62 St – D/N – $1,550, YoY -8.8%
  • 96 St – Q – $2,839, YoY -8.4%
  • Fort Hamilton Parkway – D – $1,800, YoY -7.7%
  • 34 St – Herald Sq – B/D/F/M/N/Q/R/W – $3,600, YoY -7.6%
These subway stops saw some of the most drastic rent jumps
  • 36 St – D/N/R Trains – $2,200, YoY +10.1%
  • Hewes St – J/M – $3,050, YoY +9.1%
  • West 4 St – A/B/C/D/E/F/M – $3,556, YoY +7.9%
  • 161 St – Yankee Stadium – 4/B/D – $1,995, YoY +7.8%
  • Beverly Rd – Q – $2,041, YoY +7.4%

Methodology

To calculate the median net effective rents for the map above, we used RentHop’s rental data for one-bedroom apartments from March 16 through June 15, 2019 & 2020, MTA Lines and Stops data, and GIS data for subway stops compiled by CUNY – Baruch College. To get accurate prices near the subway stops, we looked at least 50 non-duplicated rental listings within half a mile of a subway stop and then calculated the median rents. If there were less than 50 non-duplicated listings, we expanded the distance to 1 mile of a subway stop.

Condensed Map for Easy Sharing – Click on the image for the full map!

Click on the Map For High-Resolution Map

Published at Tue, 23 Jun 2020 16:30:25 +0000

RentHop NYC Market Report: Rents Are Going Down in New York City and Manhattan Is Losing Renters

The COVID-19 pandemic has dramatically altered life in New York City. The MTA system grapples with billions of dollars of deficits with historically low ridership, and many people, who once called New York City home, are now breaking their leases and leaving the epicenter due to concerns over a potential second wave, burden of high living costs amplified by unemployment, and changes in company remote working policies.

After a few painful weeks with severe declines in leasing activities and high vacancy, the NYC rental market seems to finally see the light at the end of the tunnel. While still slow compared to previous years, the rental market has shown some signs of recovery in the past month, including more inventory hitting the market. In this report, we will analyze the current state of the rental market and offer some insights for people who are looking to move in the coming weeks.

For the First Time in Years, Rents Are Dropping

Calculated using thousands of listings advertised in the past 30 days (May 12 to June 11), the median 1BR rent in New York City currently sits at $2,645.3, down 1.3% from $2,681 during the same period in 2019. This downward pressure is largely caused by reduced demand and an increasing amount of rental concessions offered by landlords grappling with tenant retention and high vacancies. The anemic demand and competition for tenants are forcing some landlords to double their incentives, going from 1 month free to 2 months free on certain units and lease terms.

We are also seeing a growing number of no-fee apartments on the market, whether advertised by rental agents or directly by landlords. Prior to the pandemic, around 58% of the listings on RentHop were no-fee. This number has since increased to 64%.

For those who are staying in the city with expiring leases, now might be a good time to start your apartment search. We expect that the rental trends will continue as New York City struggles with unprecedented job losses, an outflow of residents, and the economic turmoil due to the coronavirus lockdown.

Inventory Flows Back In, Approaching the Pre-Pandemic Level

While April has historically been the beginning of busy real estate sales and rental seasons, the market has been flat this year. Due to the COVID-19 lockdown and pause of real estate showings, the number of active listings on RentHop dropped dramatically within a week after the start of the stay-at-home order. By mid-April, the number of active listings on RentHop had lowered 20% to just around 20,000 on average each week.

Since then, inventory has been growing steadily. The number of active listings first peaked the week of May 4 to May 10 since COVID-19 and has generally been trending upward. This implies that inventory is now flowing back, and renters now have more options to choose from.

Renter Inquiries Recovered to the Pre-Pandemic Level

Unsurprisingly, the coronavirus outbreak exerted downward pressure on the rental market in the city of New York. Daily inquiry count started dropping exponentially in early March, and by March 20, the day when the PAUSE order was announced, the daily renter inquiry count had fallen over 60% below the pre-pandemic daily average.

But things quickly started to turnaround by early April. This upward trend continued through May, with May 12 being 26% higher than the daily average prior to the COVID-19 outbreak. And while the recent BLM protests have had an impact on market activities, generally speaking, the number of renter inquiries is reaching the pre-pandemic level. We expect this upward trend to continue in the coming months, driven by pent-up demand as people who have held off moving are now restarting their apartment search process.

Leads, however, seem to be shifting from Manhattan to Brooklyn. As shown in the chart below, the top 5 most inquired neighborhoods last year were all Manhattan neighborhoods, such as Hell’s Kitchen, FiDi, and the East Village. The rankings changed drastically this year. Four out of the top five neighborhoods are located in Brooklyn, and the fifth one is Astoria, Queens. This shift might be evidence that the city may be seeing an outflow of residents from Manhattan to more affordable and less populated neighborhoods in outer boroughs.

Published at Tue, 16 Jun 2020 14:00:37 +0000