Manhattan had its worst Could in a decade for brand new rental leases, as residents go away town and the actual property trade stays on lockdown, based on a brand new report. 

New leases fell 62% final month, based on a report from Miller Samuel and Douglas Elliman.

May noticed the biggest year-over-year improve in new listings in practically 4 years, with the quantity residences listed for hire in Manhattan leaping 34%, to 7,420. There have been extra empty residences in the marketplace final month than at any time since actual property appraiser Miller Samuel began amassing the info in 2006.  

This means that the shutdown of the actual property market, coupled with New Yorkers fleeing town, is placing rising strain on landlords and costs. And there are indicators that June will not be significantly better. In accordance with actual property service supplier UrbanDigs, there have been solely 377 new leases signed in New York Metropolis within the first week of June — down 67% from a yr in the past.

Whereas brokers blame the declines in the marketplace shutdown — as brokers are barred from exhibiting residences or holding open homes — the rising stock suggests costs could possibly be underneath strain even when the actual property trade reopens, seemingly in late June or early July.

“The provision of obtainable rental models continues to build up,” UrbanDigs stated in its report, which checked out all 5 New York Metropolis boroughs, “hinting that renters can have the higher hand in negotiability when the market lastly reopens.”

Bigger and dearer residences are getting hit the toughest. New leases for three-bedroom residences in Manhattan dropped 71% in Could. The typical rental value for the highest 10% of leases fell by 20%.

In the meantime, landlords are making concessions. The share of recent leases in Manhattan with rental concessions — usually equal to about 1.5 months of free hire — elevated to 42% from 34%.