how is the rental market doing?

some statistics for September 2007

Percent mean citywide increase since January 2007:

* Doorman studios + 3.2%
* Non-Doorman studios + 10%
* Doorman 1-bedrooms + 7.4%
* Non-doorman 1-bedrooms + 5.8%
* Doorman 2-bedrooms + 8%
* Non-doorman 2-bedrooms + 20%
The following has been quted by the NT Real Estae Group who follows the rental market
If sales of Condos and Co-Ops begin to slip, Wall Street bonuses dwindle as are anticipated and interest rates climb, we could very well see an even stronger rental market. Prospective buyers will take shelter in rental apartments until the market turns once again in their favor. However, if the Fed continues to keep interest rates low, the sales market sustains current levels or even dips slightly due to reduced demand, and the financial companies are not affected by the sub-prime fallout to the extent many believe today, the rental market could show signs of more substantial weakening in 08 as many continue with plans to purchase in lieu of continued renting.

I personally don't see the latter occuring even if sales pick up. The fact that mortgages may get more difficult acquire and people are getting gun shy may in fact create a build up of renters thus creating even more demand for rentals in the City.

'Prospective buyers will take shelter in rental apartments until the market turns once again in their favor.' And what makes you think that all of the prospective or current sellers won't decide to rent out their apartments thus creating increased supply of rental properties...you can finish the rest....

and what makes you think they haven't already and rental inventory is still low

And what makes you think that all of the prospective or current sellers won't decide to rent out their apartments thus creating increased supply of rental properties...you can finish the rest...

Those who own a co-op which comprises most of the city dwellers have ridiculous restrictions on renting out their coops so that would put a limit if sellers can't sell.

anyone else out there have thoughts about the rental market? am referring to condo rentals, curious to see whether the credit crunch has affected rental especially high end ones (condo units in new development) since sellers might choose not to sell at the moment.

People keep mentioning rental inventory, but how about a recession? If we are hit with job losses, there will be less employed people to rent at the rates. Also, rent can't go too high or most people (except the i-banker, lawyers and other well paid people that wants to live in NY regardless of price) will move across the river to save some money. I think the high rent is due to strong job market in NY. If the job market turns, the rental market will take a hit. Remember 9/11. You could have rented a doorman 1 bed for $2.5k per month. It took a few years for that to work itself out.

my studio at 95 Christopher street went up 30%

my rent did not increase at all this year.

I beleive the rental increases started around August of this year. Therefore if you signed a lease prior to that date than of course you would not of experienced an increase. Once your lease does expire and the market conditions remain the same as they are now you can for sure expect a rental increase of anywhere from 5 to 30 %.

I had an increase of $200, less than 10%. Sounds bad, but to be honest, I expected worse. paying 3100 now for a 900 sft JR4 with 1BR/1BTH in full service DRMN bldg.

I know similar units are asking a few hundred more. Nothing major fancy though, just good location.

Ours tried to raise us nearly 15% for Sept 1 renewal, but we got them to come down to 10% (3 yr tenants). So we're now paying $3250 for 695 sq ft 1bd/1bath in full service doorman building

no surprise on anon3

as anon3 = mafia

and is all about doomsday

Hello everyone, haven't been on the board in a while and today/this blog thread, is a good time to check in. Current market factors made me decide to take my co-op off the FSBO market last weekend and put it up for rent instead, for 2 reasons: handsome buyer man I mentioned in a previous dialogue turned out to be all talk/no action (sigh) and Bernake Buyer Bonus on the 18th seems to have been overshadowed by the doom-and-gloom-don't-buy-now-crowd who ironically, will probably never get out of the "NOW?" "Not now!" "NOW?" cycle.

Anyway, I posted it on Craigs List as a no fee rental Monday, had 52 inquiries by Wednesday, did credit checks on 5 folks (www.citicredit.net is a phenominal service!) and submitting prospective tenant paperwork and process info today.

Future status: HER RENT minus my mortgage + maintenance = positive cash flow $773.00/month in pocket.

Gotta run, have an appointment to submit her paperwork at 4:30pm.

Have a great weekend everyone.

Interesting ShareShare--where is your apartment located? How long have you owned it for. What type of apt (1 or 2 bdrm). What did you rent it for?Thanks in advance for your replay.

ShareShare-that is great news, but I hope you factor these two items. 1) Tax free sale if you live in the apartment 2 out of the last 5 years. If you rent for more than 3 years, you lost this valuable benefit. 2) Reinvestment returns. If you own for several years, you should have positive cash flow. You need to factor out what you will net from the sale (purhcase price - mortgage - other cost), and rate of return on this. Maybe you will earn $1,000 per month if you put your net from the sale in a safe high interest money market fund. Just my two cents.

also, keep in mind that her rent = income to you that you must report to the IRS. If that is not taken into account in your formula you're actually underwater renting it. If her rent is $1000, it really is only $500 that you pocket.

you must also take in account her rent is paying down the mortgage, putting money in her pocket and letting her sit on an asset for however long she wants too and it's appreciating over the long run as well.

Underwater renting it because your paying taxes on income after covering your costs? anon3, please read an accounting book or something will you? You don't make any sense.

ShareShare - congrats, great story

Oh I forgot over the years rents do increase as well which is yet another bonus.

"If her rent is $1000, it really is only $500 that you pocket." anon3
Aanon3, That statement in itself confirms your stupidity.

We live at 100th and riverside. Last year a 2BR/2 bath (1100 sq ft) in our non-doorman bldg went for $3500 and an apt. the same size just went for $4500 (think it was a little nicer/newer though). So, seems to be fine up north.

Anon3, If you wanna get technical, you should also factor in:
1) You can depreciate your asset lowering your annual taxes
2) You can also deduct your mortgage interest, rental expenses, taxes, common charges

(Wow this offsets the extra amount you pay in taxes)

Hmm come to think of it, this is one of the FEW deductions you can take if you suffer from AMT...
hmm interesting.

thanks for the info Share. what neighborhood is your apt? I am in a similar situation. I was going to put our UES apt for sale but have seeing very weak foot traffic at the O/H's since the mortgage crisis and our building was on fire since December. We are considering renting for a two years and re listing before we lose our tax exemption. Rents are very high but seem lower this month. We would hate to rent again but lack of inventory may force us to do just that. We are also hearing the new condos on the UES are having issues despite the fake press. See number of active listings in completed developments in the Cielo, One Carnegie hill and 170 east end which were supposedly near all sold out.

Not well. I have lost 100 % of the money I invested in my various rental apartments for the last 8 years.

Rental market in Manhattan will continue to go up 38.75% for the entire year.
It will be 9.15% increase for Queens, 12.85% for Brooklyn, 4.725% for Staten Island and 3.145% for Bronx.
Source: New York City Real Estate Journal.