Luxury rentals in Manhattan are this fall’s hot commodity. They are flying off the proverbial shelf faster than Apple’s iPhone 5. Major New York real estate periodicals are saturated with daily listings of new apartments vying for the attention of potential tenants. Those looking to rent an apartment in Manhattan better act quickly, for a home’s lifespan on the market is brief. With such a burgeoning industry, renters may be inclined to take their time in choosing the perfect place. However low interest rates and other economic factors have dwindled the waiting period, contributing to this renting frenzy.
According to DNAInfo.com, an apartment only stays on the market for an average of 39 days. This swift turn around is the fastest the market has seen in 20 years. These numbers are surprising considering the price for rentals in Manhattan rose to $3,778 a month--a 9 percent increase from last year. Two-bedroom apartments are even more expensive, topping out at $4,686 a month. Jonathan Miller, a real estate expert, has been tracking the market and weighed in on the issue, saying, “Rents have been rising at a brisk rate for more than a year now.”
Why the sudden change? Miller attributes the gains to tight credit and New York’s strong job growth. Indeed, the real estate market responds almost immediately to leaps in employment. Thanks to lower interest rates, the market is expected to remain on this course until the beginning of 2015. Tenants are hitting the rental market at a furious pace, leaving frustrated competition to search for homes in Brooklyn or Hoboken. The Executive Vice President of Prudential Douglas Elliman, Yoval Greenblatt, reiterated this claim. “I had someone who lost an apartment because another applicant, equally qualified, showed up the same time and brought a deposit.”
There is no time to waste when it comes to the rental market. The holidays are coming and brokers will try to cash in on the season. As we’ve previously reported, rent is rising and it shows no signs of stopping anytime soon. New Yorker’s must bring their A-game if they hope to be one of the lucky few who have the pleasure of renting in Manhattan. This mean answering the door when opportunity comes knocking. Renters better hurry though. Opportunity is impatient and may wind up on the doorstep of their next door neighbor.
