Short Term + Furnished Rental Market Report | August 2016
Short-term furnished apartments in Manhattan are densely concentrated near Manhattan’s central business district of Midtown. Of these listings, 60% are located in the submarkets of Midtown West and Midtown East. The next highest concentration of short term furnished apartments is on the Upper East Side with 55 listings or 20% of total listings. Inventory across these neighborhoods are fairly robust for all types of housing, due to high-rise residential developments and neighborhood demographics.
Despite being a business hub, the Financial District and Battery Park City comprise only 8% of Manhattan’s listings. This is matched by low inventory for long term (12 month lease) lodging and subsequently higher costs. This neighborhood has recently seen the reconfiguration of office buildings into condominiums or luxury rental apartments, this should lead to more short term units coming online as the neighborhood shifts from an office district towards a more mixed district.
Chelsea and the West Village account for only 9% of short-term listings despite being primarily residential neighborhoods. Home ownership in these neighborhoods is well over the borough average, which explains the shortfall in inventory. The Upper West Side is a similar case as it contains only 4% of the city’s total inventory. The neighborhood characteristics are not conducive for short-term rentals.