Friday, July 8, 2011

Big rise in rental charges for NYC apartments

The Beekman Tower is one of Manhattan's newest rental buildings
Spikes of 9% to 11% seen over past year for studios and one-, two- and three-bedroom pads. Days on market are down; so, too, are landlord concessions.

By Ian Thomas

 Maybe the only thing hotter than the weather in Manhattan the past few months has been the apartment rental market, where rents have continued to rise and vacancy rates have hit a new low, according to reports released Friday.

Manhattan's apartment vacancy rate was 0.72% in the second quarter, the lowest vacancy rate that Citi Habitats, the city's largest rental residential brokerage, has seen since it started tracking vacancies in 2002. The last time the rate was nearly this low was in second quarter of 2006, when it was 0.76%.

Average rents have seen large increases across the board over the past year, regardless of apartment size. Rental prices for studios and one-, two- and three-bedroom apartments increased 9.1%, 9.2%, 10.8% and 11.3%, respectively, according to Citi Habitats.

Similar trends could be found in a report by Prudential Douglas Elliman and Miller Samuel. The firms tracked 8,572 new rentals in the second quarter, an increase of 51.5% year-over-year, with the average apartment rental on the market for 33 days, compared with 40 last year.

“People are still coming to Manhattan looking for jobs,” said Gary Malin, president of Citi Habitats, citing what he described as a vast increase in the number of first-time leasers moving into the city.

With a much higher demand than seen in previous years, landlords are no longer scrambling to find new tenants—and they're lowering concessions as a result. For instance, 11% of Citi Habitat's rental transactions in June 2011 included a concession, such as a month's free rent or payment of brokerage fees, but it was 28% in June 2010.

“The catalyst is on the purchasing side of the market,” observed Jonathan Miller, CEO of independent real estate appraisal firm Miller Samuel, noting that the slow-moving economy and still-poor credit conditions are turning more home buyers into renters.

The Douglas Elliman report noted that the average rental concession was 1.2 months of free rent or its equivalent in the second quarter, down from two months in the year-ago period. While more than 60% of new rental deals had concessions in the second quarter of 2010, just 3.4% had them in 2011 over the same time period. As a result, the average rental price increased 3.4% for tenants after concessions this year, to $3,455 in the second quarter from $3,342 in the first quarter.

Despite the rising costs for space and the fact that there are fewer available apartments, pearls can await those who are willing to search deep.

“There's still a lot of opportunity in the marketplace,” Mr. Malin said, pointing to the Upper East Side as one area that still has a lot of value for the price. “It just depends on how creative you want to be.”

20 comments:

  1. And the Rich get richer & the Working stiff gets a 10% increase in the Rent, while being asked to give up 25% on their wages.

    Yee Ha! And the Funds made 20% - Sweet.

    What does that say about McGuires lies to Judge Berman now?

    ReplyDelete
  2. DROP DEAD UNITY TEAM !

    ReplyDelete
  3. Anymember NYC District CouncilJuly 10, 2011 at 3:50 PM

    John Moose please email this factiod to dennis walsh. He could use some outside sources of info other than his clients info from 395.

    ReplyDelete
  4. Says life isn't kind to anyone. It's just the way it is.

    Tom from Saigonstay

    ReplyDelete
  5. Hey its really true that what is been mentioned in the article is really true with regards NYC Apartments...

    ReplyDelete
  6. such part of area like Denver's overall cost of living is 35% above the national average, so it's not the cheapest place to live. However, affordable apartment rentals are available, with the median price for all apartments at $700 per month. The full range encompasses basic studio apartments starting in the $400-500 range up to luxurious apartment rentals topping $2,000. How's that for variety?

    ReplyDelete
  7. When the economy is so poor these things can happen. When signing a apartment rental agreement and one doesn't see a concession it is not necessarily the landlord's fault. Things usually happen in a cascade format. The property taxes could have increased as well as the facility upkeep. One just has to look at the larger picture to understand things better.

    ReplyDelete
  8. Apartment for rent in JerusalemDecember 2, 2011 at 1:59 AM

    Interesting and important information. It is really beneficial for us. Thanks

    ReplyDelete
  9. Interesting and important information. It is really beneficial for us. Thanks

    ReplyDelete
  10. Renting over buying has been one of the debates even for those new york real estate ce professional as to what is mostly or the best option - to own a house or to rent a property instead. With a lot of people having different preferences on either owning or renting out, what matters is the everyone's interest is protected and given their chances to live a safe and sound life having a shelter to stay with.

    ReplyDelete
  11. I found this blog so great because it gives great information regarding on
    Rent Apartments Toronto, so it could be better to keep on posting!

    ReplyDelete
  12. Hello, I found this post when I was searching on internet best rentals apartments and such a loving post about it. It gives great information regarding in it.
    Apartments for rent blackfoot

    ReplyDelete
  13. Thanks so much for posting this! Do you know where I can get some more info on calgary apartment rentals?

    ReplyDelete
  14. Wow it such a nice post. I am also looking for apartment on rent at suitable price. This post really helpful for me to find apartment on rent. Thanks for sharing this information keep it up. I have also this kind of service. For more information visit our website www.rentish.com

    ReplyDelete
  15. Thank you..... :)
    your blog is very nice.
    But I am provide to the best in our city.

    Apartments to Rent in London

    ReplyDelete
  16. It is true that you’ve to have the right connection and probe deeper to get a cozy apartment in NYC as things have already been compromised so much that the area lacks accommodation for new peeps coming in everyday! But if you are worried, you can look for private apartments and rentals with APT212 at almost the same rates. Yes there’s a slight difference but very little in comparison to the other marketplaces.

    ReplyDelete

  17. There are many reasons why we love high rise condominium land in Houston. First of all, the proximity to Houston's business, commerce and excitement is unsurpassed. Most condominiums owners in Houston park the car and merely walk to their job and their entertainment destinations. Second, condominium land in Houston may be a good way to have Houston land while avoiding the pitfalls and maintenance problems with single-family homes. Condominium living in Houston is maintenance-free living at its finest! Finally, the extent of luxury and opulence offered in many downtown Houston condos and Houston condos, generally , are simply divine. From spa-inspired swimming pools to state-of-the-art fitness centers, condominium land in Houston sets the bar for opulent living.
    Luxury Apartments Galleria Houston

    ReplyDelete
  18. Great Post. Thanks for sharing with us. For apartment rent in nyc Visit my website: apartments for rent nyc cheap

    ReplyDelete
  19. Very informative and impressive post you have written, this is quite interesting and i have went through it completely, an upgraded information is shared, keep sharing such valuable information. Find the best apartments for rent nyc.

    ReplyDelete

I would ask that if you would like to leave a comment that you think of Local 157 Blogspot as your online meeting hall and that you wouldn’t say anything on this site that you wouldn’t, say at a union meeting. Constructive criticism is welcome, as we all benefit from such advice. Obnoxious comments are not welcome.