The wealth of Manhattan real estate comes with a wealth of Manhattan real estate reports. Reports from the most recent quarter showed activity in the market, but at slower rates than the previous quarter and last year, and with pricier trends. So indeed, that chorus of renters' sighs heard around the city this past Friday came from a usual suspect: the rental market report.
Manhattan rental market reports show rents going up in the third quarter this year, while the number of new luxury Manhattan rentals continues to fall. They also indicate that NYC landlords are taking the glitter-out-of-the-envelope in terms of concessions. And as rent goes rises across the board, The New York Times reports that many tired Manhattan tenants with end-of-the-run leases have received stark demands for higher rent, and are consequently shopping around for more affordable options.
According to statistics, the median Manhattan apartment rental price is $2,995/month, which is a 3 percent increase from the second quarter. Unfortunately complementing the glossier price tags is the fact that NYC apartment hawks have a smaller array of luxury Manhattan rentals available to choose from. Elliman shows a 6.7 percent drop in the number of new Manhattan rentals from last quarter, and an increase in the length of time that listed apartments have stayed on the market. Concessions like free rent that can impact this kind of slump have substantially resigned from the game, as only 8.6 percent of new leases offer concessions this quarter, compared to 45% of leases a year ago.
With less competition and concessions on the market, there seems to be less in the way of rents toeing up--and that also affects Manhattanites without bedrooms. The average rental price of a Manhattan apartment studio is up 8.3 percent from second quarter. Most drastically, multi-bedroom NYC studios have seen rent increases— in some cases by 200 percent from last year. The median rental price of four plus bedrooms in Manhattan is $19,000-- a 184.6 percent increase from the second market quarter.
With the slim vacancies in Manhattan luxury apartments, less developments going up, and more apartments hawks, good steals are taken fast. In an atmosphere void of any real incentive for competitive rents, Manhattan tenants are bearing the burden of rising prices. According to statistics from City Habits market report, rents have gone up by 13 percent since September 2008 in traditionally strong areas like Greenwich Village, TriBeCa and Soho. But despite these unfortunate rent woes, tenants seem to find the benefits of living in the city worth the struggle. Maybe persistence is the best tool in a renter’s love-hate relationship with NYC real estate. We will keep you up to date with developments when the final rental market for the year is released. In the mean time, as Halloween approaches, our fingers are crossed for some treats. We’ll take stale Ju-Ju’s, anything, really, than another hike.
