Apartment rentals New York with Silver Towers

The Crunch To Come: Is the NYC Rental Market Facing A Looming Inventory Crisis?

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We'll admit it: there are better places to go for economic analysis than the Luxury Rentals Manhattan blog. Which is fine, since we're mostly about point people towards no-fee rental listings and NYC rentals and less about detailed microeconomic position papers. Everyone's cool with that. But it has been interesting, during the tenuous but ongoing comeback in the Manhattan rental market, to se basic economic fundamentals getting a real world star turn -- and behaving more or less as the textbooks say they should. If you've been reading the blog -- or even just following Manhattan real estate -- you've seen it, too. From the way that prices have spiked as vacancies have gone down to the near-disappearance of concessions and incentives on NYC rentals, Manhattan real estate has been exceptionally logical of late. Not always kind, and certainly enough to send many renters looking back wistfully at the good old days of the renter's market, but logical. But if there's something reassuring in that logic, there's also something somewhat menacing about it, considering that what looks like a possible inventory crunch in the Manhattan rental market could send prices spiking in months to come. Economic rules: can't live with 'em, can't... well, you know the rest.

Manhattan Luxury Rental Buildings: Now With More Luxury (And Market Share)

It's a trend we've written about over and over again -- with Manhattan condos seemingly a sketchier investment than in years past and still out of just about everyone's price range, more and more people are opting for Manhattan rental apartments over condos. There are, as we've also noted here at the Luxury Rentals Manhattan blog, good economic reasons for this, but there's another, simpler reason why the market for Manhattan rental apartments is surging while the condo market is stagnant. That other, simpler reason being that new construction Manhattan luxury rentals increasingly offer the same high-end finishes and fixtures, and similar suites of amenities and extras, as their condo counterparts -- and offer it without the economic anxieties that come with a mortgage, a co-op board, and all those other, less-desirable condo extras. But while it's not necessarily surprising that high-end luxury rentals are bouncing back from the Manhattan real estate downturn than condominiums, there's also more to the reason why this is so than the fact that both top-tier new construction NYC luxury rentals and high-end condos feature SubZero refrigerators and expansive suites of amenities. Although that obviously doesn't hurt.

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