Manhattan Rents Down, Inventory Up This Month

The Real Estate Group released its "Manhattan Rental Market Report" today and found that October rents were, as expected, lower: "As we are entering into the historically sluggish fourth quarter, we normally expect to see a seasonal slowdown. In step with these trends, rents are down across the board this month and inventories, which had previously been in a two–month decline, are back up sharply." Overall, the report finds that rents have fallen many unit types--rents have fallen 7.23% in doorman studios since last year (non-doorman studio rents are down almost 2%)-- and though some landlords are offering concessions, "this effort does not seem to be enough to right a market that is being heavily influenced by economic factors, above all being unemployment." More facts and figures here.

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By Jen Chung in News on October 28, 2008 9:00 AM

Comments [rss]

NannyState

Rents in NYC went up how many percentage points in the last 10 years? That's how far things need to drop. Right now, it's business as usual.

Novanglus

Does this mean brokers will start reducing their ridiculous fees?

kissel

everyone has obama tunnel vision. i think the poster may also be talking about Bloomquin talking about significantly raising property and income taxes which both affect renters and owners - something renters don't think about,but is baked into their cost.

everyAframe

^ ah, even better still! yeah, it kind of amazes me how folks making 50k a year in red states are afraid of Obama hiking their taxes. Its like they're saying if I walked up to them and offered them a check for 325 thousand dollars, but would ask a 3% agent commission, they would refuse my offer.

Politburo

everyAframe: Actually the extra 3 points doesn't kick in until ~$375k (in 2009, individual). If you're in the $200k-$375k range (individual) your taxes will still go up, but only by 1 point. And let's not forget these are marginal rates and they only apply to the income in that bracket. Although I shouldn't be, I'm surprised at how few people understand how our income tax actually works.

everyAframe

^ Mmmore like three moths from now...this is nyc, it'll be over in a year. Put it this way: in 2001 two 110-story buildings were flattened by terrorist attacks and that neighborhood had rent deals for about fourteen months and then it was business as usual again.