A rise in vacant apartments and discounts from landlords slowed rent growth in Manhattan and Brooklyn, according to a market report StreetEasy released on Friday.
The median rent in May was $3,280 in Manhattan and $2,873 in Brooklyn, both higher than the the median rents in May 2015.
Manhattan rents rose 2.3% year-over-year, down from the 6.1% growth between May 2014 and May 2015, the report found.
In Brooklyn, rents rose 1.2% between May 2015 and May 2016, 3% less than the growth rate the year before, according to StreetEasy.
Several factors contributed to the slow-down, including rentals staying on the market for longer than they had in the past and landlords lowering rents to entice tenants, an expert from StreetEasy said.
An increase in concessions — such as a free month’s rent — from landlords also fed the trend.
“New York renters have grown accustomed to arriving at open houses with their checkbooks in hand, for fear of losing out on a property,” StreetEasy economist Krishna Rao said in a statement. “Now, in the face of record-high prices, renters are pausing to weigh their options, easing urgency for summer shoppers in both boroughs.”
The rental concessions were so great that 30% of Manhattan rentals and 33% of Brooklyn pads were discounted in May, according to the report.
In Manhattan, the area above 110th Street had the highest rent growth between May 2015 and May 2016, with 2.9%, while downtown had the slowest, with 1.9%.
South Brooklyn saw an 8.3% drop in rents during that same time period while the northwest section of the borough had the greatest rise in rents with a 4.6% jump, according to StreetEasy.
