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REZI Releases Q1 2022 NYC Apartment Rental Market Insights

Occupancy-as-a-Service Pioneer Analyzes NYC Rental Market Rebound

NEW YORK, May 18, 2022 /PRNewswire/ -- REZI, the pioneer of the "Occupancy-as-a-Service" model to guarantee leasing performance for property owners, today releases the Q1 data and analysis of NYC's rental market through real-time borough performance metrics.

(PRNewsfoto/REZI)

Using over 100 data points per rental unit 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 costs to provide a complete view of NYC's rental market in Q1 2022.

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, renter move-in delays, and placement fees.
  • Listing Rent: represents the monthly net-effective rent / the amount of rent collected adjusted for vacancy cost.

REZI's NYC Q1 Rental Market Report

Overview - State of the Market

As we look at the state of New York City's rental market at the end of the first quarter, we see the market's rebound continue as listing rents grow and days on market continue to decrease.

The growth in days on market appears to be accelerating as we see a drop of over 44% compared to this time last year, compared to a 32% drop when we looked at the December market performance. The below table show NYC's total average performance as of March 2022:

Days on Market

Listing Rent

Vacancy Cost

26

$3,481

$8,860

-44.7% change from 3/21

26.2% change from 3/21

-0.8% change from 3/21

-18.8% change from 12/21

0.6% change from 12/21

-1.4% change from 12/21

Seasonal trends and market demand have driven Average Days on Market down - from 50 days in March '21 and 32 in December '21

Average Listing Rents have seen an impressive increase of over 26% from $2,759 in Q1 last year - though there has been little change in the lead-up to spring leasing season.

Despite seeing demand pick up and rents rise, Average Vacancy Costs have remained steady, driven almost entirely by significant decreases in Manhattan.

Borough Level State of the Market as of March 2022

Days on Market

Listing Rent

Vacancy Cost

Brooklyn

21

$3,111

$7,407

-36.36% change from 3/21

+24.7% change from 3/21

+7% change from 3/21

-12.5% change from 12/21

+2% change from 12/21

+3.5% change from 12/21

Brooklyn saw a significant decrease in Average Days on Market from last March's 36 Day average, with seasonal trends slowing the decrease in Q1.

As Days on Market dropped, we saw Listing Rents rise by $616 on average over the year.

Despite the citywide average for Vacancy Costs staying relatively stable, Brooklyn's average grew by 7% over the past year. 

The Bronx

36

$2,273

$6,533

-2.7% change from 3/21

+13.1% change from 3/21

+11.9% change from 3/21

-2.7% change from 12/21

+9.7% change from 12/21

+11.6% change from 12/21

Average Days on Market in the Bronx remained consistent over the year and past quarter, in contrast to the decreases across other boroughs.

Average Listing Rents continued to rise from $2,009 in March 2021, with a significant portion of that growth occurring in the past quarter. 

The Bronx saw the highest growth in Average Vacancy Costs as the only borough with growth surpassing 10%.

Manhattan 

30

$4,226

$11,312

-53.1% change from 3/21

+33.2% change since 3/21

-6% change from 3/21

-21.5% change from 12/21

+3.5% change from 12/21

-1% change from 12/21

Manhattan's rebound continues, as the borough saw the most significant drop in Days on Market of any borough, falling from a 64-day average last March. 

Average Listing Rents saw the highest growth and continue to lead the city average, though seasonal trends slowed growth in Q1. 

Manhattan was the only borough to see Average Vacancy Costs decrease, effectively balancing out the growth across other boroughs.

Queens

23

$2,546

$6,229

-25.8% change from 3/21

+19.3% change from 3/21

+7.7% change from 3/21

-14.8% change from 12/21

+4.7% change from 12/21

+6.3% change from 12/21

Queens saw a smaller decrease in Days on Market than Manhattan and Brooklyn over the past year.

Average Listing Rents continued to grow from $2,135 last March, with Queens seeing higher growth than average in the first Quarter.

Average Vacancy Costs continued to grow, with significant growth in the past quarter, increasing 6.3% since December 2021.

Average Listing Rent  
While rents remained well above last year's averages, we saw slight shifts in Listing Rents throughout the quarter. Across the board, we see costs starting to increase in line with seasonal trends.


Brooklyn

Bronx

Manhattan

Queens

Mar

$3,111

$2,273

$4,226

$2,546

Feb

$3,085

$2,162

$4,249

$2,501

Jan

$3,043

$2,097

$4,199

$2,531

Q1 Days on Market  
We saw Brooklyn replace Queens with the lowest Days on Market throughout the quarter, . Manhattan saw the most significant drop as leasing season starts to pick up. While most boroughs showed a relatively steady drop, the Bronx had greater fluctuations.


Brooklyn

Bronx

Manhattan

Queens

Mar

21

36

30

23

Feb

22

29

34

23

Jan

25

36

39

24

Q1 Vacancy Cost 
Vacancy costs varied by borough, with some fluctuation as the citywide average fell by 1.4%. Manhattan remains 50% higher than other boroughs, though it saw the largest decrease over the Quarter, falling by 10% - compared to 5% in Brooklyn.


Brooklyn

Bronx

Manhattan

Queens

Mar

$7,407

$6,533

$11,312

$6,229

Feb

$7,446

$5,716

$11,932

$6,119

Jan

$7,645

$6,027

$12,482

$6,275

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

Media Contact:  
Loren Pomerantz  
917-902-0219  
loren@combined-forces.com 

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SOURCE REZI

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