As a thriving community on the Long Island Sound with excellent schools and a healthy lifestyle, Greenwich, CT has long been a refuge for those working in New York. The sentiment holds true now more than ever as New Yorkers seek to hold on to their jobs while finding more living space, home offices, convenient services and lawns for the children to play.
Rentals are leading the sales market as demand surges and clients seek quick execution. To be sure, the Spring market is the beginning of peak seasonal demand each year. This year, the demand spike is early, sudden and strong, as evidence of the general concern for health in the world of COVID-19 and a desire to live in Greenwich. As the number and pace of rentals increases, pricing is rising as well.
Year-to-date the number of Townwide rentals are up 25% with an median sales price of $5,000 per month, a 37% increase over the same period last year. The 108 single family rentals, up 47% over last year, had a median sales price of $8,150 per month, up 59%. Greenwich proper rentals soared 70% and drove median monthly rentals to $10,500. Much of the activity and surging pricing took place in the more recent weeks.
The chart above displays for each month a marker for each consecutive rental, year to date, as compared to the same period last year. In each month 2020 rentals progressively outpace 2019 rentals. Rental prices surged in March 2020 on increasing demand coupled with some reluctance on the part of homeowners to list their homes for rent given the COVID-19 risk. In fact, available inventory has slipped 20% off last year, and new listings have declined as well.
While the trend is clear, take note that pricing is not entirely transparent. Rates may reflect differing lease terms, options and furnishings. Greenwich is predominantly a long term lease market, with few short term leases available and some are available only for the summer months. Long term leases are typically for unfurnished homes and are quoted on a monthly basis. Flexible leases may allow less than 12 month term, with most unfurnished. The limited number of summer, seasonal or three months rentals are quoted on either a monthly or an aggregate summer term basis, and as such, can be consistent pricing outliers. With all the typical terms in mind, the current market has been more flexible and creative, and more short term rentals have been available at higher price points. In any event, interest in Greenwich, CT continues and average rental rates are soaring.
Rentals in the last couple of weeks are pricing near, at or above asking price. Generally, rising demand is pushing up pricing across the board and higher priced homes are renting more readily than seen in recent years. Less obvious is the premium charged for (a) renting a fully furnished home, (b) any right of renewal, (c) any month-to-month terms and conditions and (d) general extension or hold-over risk.
Recently rented two bedroom homes priced in the $2,000 to $4,000 range and constituted 33% of rentals year to date. Three bedroom homes were predominantly priced from $4,000 to $8,000. Few homes are listed as available for rent as furnished homes. As the market and inventory is changing quickly, please keep only the trends and general ranges in mind and reach out to me directly for more color and information.
With warm virtual hugs to customers and clients… be well, be safe and be optimistic!