ML-Implode News - NYC rents dip as concessions become the new normal

The use of concessions has been on the rise, particularly in Manhattan, where Douglas Elliman found that it hit an all-time high for the fourth consecutive month--now, more than 30 percent of leases include a concession. In short, it's a good time to sniff out reduced rent.
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In Manhattan, the median rent--including the cost of concessions--has been on the decline for six consecutive months, year over year, landing it at $3,259 for the month of January. (Without concessions, the median rent in Manhattan comes in at $3,369.)
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Like in Manhattan, the demand for two- and three-bedroom apartments in Brooklyn remained softer than studios and one-bedrooms, with rents falling nearly four percent from this time last year for two-bedrooms, and almost eight percent for three-plus-bedrooms. On the flip side, the median rent for studios has remained relatively stagnant from this time last year, clocking in at $2,300--way down from December's $2,409. The median rent for one-bedrooms has increased about four percent since last January, bringing it to $2,700.

Ruh-roh. And from this WSJ article:

The concessions and flattening of rents have been attributed to a surge of new rental buildings coming to market, as well as a slowdown in growth of higher-paid jobs in New York City.

Mr. Gavzie said the weakness was most pronounced in more expensive apartments. Tenants typically had less room to negotiate in lower-rent starter apartments, he said.

Gary Malin, president of brokerage Citi Habitats, said the rental market is now value-driven, with tenants willing to try new neighborhoods to get a better deal.

Relevant:

NYC rents dip as concessions become the new normal