The Wall Street Journal starts the day today by proclaiming that “The apartment vacancy rate in New York City continues to be the lowest in the nation, according to a new report (by Marcus & Millichap, a real estate investment firm). That’s great news for landlords, but bad news for renters’ pocketbooks.”
Bloomberg quotes Citi Habitats as saying that rents increased 9% in July from a year ago in July. “landlords tested how high they could push prices amid few vacancies.”.
“Owners are smart, savvy individuals who are going to keep pushing their rents and pushing their rents until such time when the tenant population speaks back,” Gary Malin, president of Citi Habitats, said in a telephone interview.
“The prices are so high right now, there comes a point at which the pain threshold for tenants hits that point of ‘This is very expensive,’” Malin said. “It just gets to that level at which tenants can’t pay it anymore.”
Landlords cut back on concessions, offering deal sweeteners such as a month’s free rent in only 7 percent of new leases in July, Citi Habitats said. A year earlier, they offered incentives for 25 percent of new rental transactions.