NYC Up, but Suburbs Are Down

DALLAS, TX--(Marketwired - January 23, 2015) - New York City's apartment market continued its late 2014 surge in December, while most of the Tri-State Area's suburban markets suffered from a season letdown at the end of the year, according to Axiometrics, the leader in apartment market research and analysis.

The New York-Wayne-White Plains Metropolitan Division experienced 4.5% annual effective rent growth in December, the first time the market surpassed 4% since the 4.9% of February 2013. The figure was an 82-basis-point (bps) increase from November's 3.7% and a 572-bps rise from the -1.2% of December 2013.

The average New York renter is paying $3,373 per month, $217 more than the $3,156 charged one year ago. The city's 97.3% occupancy is 114 bps higher than the 96.1% of December 2013.

Effective rent growth in the Long Island and New Jersey suburbs declined in December:

• Long Island rents grew at an annual rate of 2.7%, a 61-bps decrease from November's 3.3%, but a 528-bps increase from one year ago. Long Island rent averaged $2,105 in December, $140 higher than December 2013. Long Island's December occupancy of 95.7% was a 142-bps increase from the 96.3% of December 2013.
• The Newark-Union Metropolitan Statistical Area's (MSA) effective rent growth was 0.5% in December, down 158 bps from the 2.1% of November and down 177 bps from the 2.3% of December 2013. The average Newark rent was $1,600 in December, $82 less than one year earlier, though occupancy was stable at 96.7%.
• The Edison, NJ, MSA's rent growth of 3.1% was an 87-bps decrease from November, but a 52-bps increase from the 2.5% of December 2013. The average rent of $1,320 was $67 higher than one year ago. December occupancy of 96.1% was 54 bps higher than the 2.5% of December 2013.

The Connecticut suburbs in the Bridgeport-Stamford-Norwalk division saw annual effective rent growth of 1.6%, a 34-bps increase from November's 1.3% and a 72-bps rise from the 0.9% of December 2013. Average rent was $2,297, and occupancy was 95.5%, a 117-bps increase over the 94.3% of one year ago.

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