For months we've been writing about the soaring capacity of luxury apartment buildings in New York City and it looks as though that capacity influx is starting to take a toll as the percentage of rental inventory offering landlord concessions soared to 23.9% in October, more than double the 10.4% recorded last October.
The market continues to be softest at the top. Luxury median sales price declined 10.9% to $7,792 over the same period and the largest decline in more than 4 years. The market share for landlord concessions more than doubled to 23.9% from the same period last year to the highest share in 6 years this metric has been tracked. As a result, net effective median rent fell 1% to $3,322 from the same period last year. Days on market, the number of days from the original list date to the lease date, expanded by 6 days to an average of 46 days. Listing discount, the percentage from the original list price to the rental price, rose to 3.1% rom 2.3% in the same month a year ago.
The percent of rental inventory granting landlord concessions has surged in recent months as building owners attempt to fill new apartment capacity. As Bloomberg points out, with several buildings still under construction, the surge in new high-end capacity shows no signs of abating at any point in the new future.