Manhattan rental market strengthens

Manhattan rental apartments

Rent apartment in NY

By Adam Fusfeld in The Real Deal

Manhattan apartments for rent | rent apartment in ny

Manhattan apartment rentals, including no fee apartments in Manhattan.

 

 

 

 

 

In stark contrast from the various economic indicators surrounding it, the Manhattan rental market showed remarkable stability and strength in the third quarter. The price of an average Manhattan rental unit increased about 7 percent from the prior year quarter and remained consistent with the impressive levels achieved in the second quarter, according to market reports released today by residential brokerages Prudential Douglas Elliman and Citi Habitats.

“I used to see the rental market as a leading indicator of changing economic conditions because of how nimble it is,” said Jonathan Miller, CEO of appraisal firm Miller Samuel who prepared Elliman’s report. “But here the economy is struggling — or at best, is flat — and conditions are tight in the rental market.”

That’s because the economy has been so volatile that people are putting off their purchasing decision and instead choosing to rent. Even those who are inclined to buy, Miller noted, are encountering such strict mortgage underwriting standards that they’re forced to reconsider.

To wit, Elliman’s report shows rental activity during the typically active summer months slipped 6.9 percent from the same period a year ago to just 7,998 transactions, and 6.7 percent from the second quarter. Combined with the rising rents, the data suggests many renters are staying put and delaying decisions to move to another rental or buy, Miller speculated.

Factoring in concessions, the average monthly rent for a Manhattan apartment increased 6.9 percent from the third quarter of 2010 to $3,491, Elliman data shows. The rental price per square foot skyrocketed 13.6 percent in that timeframe to $50.60, according to the report.

— A personal perspective: Over here at RDNY.com, we’ve seen the market get tighter and tighter throughout the summer. We’ve seen week after week of price increases. The statistics may show overall rental prices up by 7%, but in reality, it’s more than that. At the doorman building level, prices have not gone up as much. Instead, incentives have stopped. But below the doorman level, the market has gotten a lot tighter and prices have gone up much higher than 7%. Even saying 10% feels to conservative.  My evidence is all anecdotal, but I deal with this stuff every day and I have a gut instinct about it. All in all, I’d say the market for rental below the doorman building level is up over 15% from last year. That’s my take on it.

 

Related Posts Plugin for WordPress, Blogger...

Related Posts:

Written by Lorenzo

Lorenzo has been hanging around the RDNY.com office for the past 20 years, and, in the process, has become the president of RDNY.com, Rent-Direct.com, and Acmelistings.com. His mission is to build RDNY.com into New York's largest no fee apartment rental service. Before RDNY.com, Lorenzo was a Regional Sales Manager for Time Equities, Inc., one of New York's largest converters of rental buildings to coops and condos. Lorenzo was once a part owner of Swift & Watson Real Estate in NYC's Greenwich Village.

This article has 1 comments

  1. larry Reply

    The New York Times reported, in the Sunday Real Estate Section on 10/16/11, the following: “Prices are rising all across Manhattan and for all kinds of apartments. In traditionally strong neighborhoods like Greenwich Village, TriBeCa and SoHo, rents are up 13 percent since September 2008, according to a survey of 10,000 apartments priced under $10,000 a month by the real estate firm MNS. And even in areas like Harlem, where the real estate slump was keenly felt, rents also jumped 13 percent.”

    So there it is, basically what I said above – the actual increase in rental prices has been considerably higher than the 7% reported by Citi-Habitats.

Leave a Comment

Your email address will not be published. Required fields are marked *

* Copy This Password *

* Type Or Paste Password Here *