The Real Estate Group of New York's October Manhattan Rental Market Report, released today, says rents are up .7% since last month and 5.52% compared to last year. Inventory rose by a mere whisper of .7%. What accounts for the up market? According to TREGNY, “The best news for the health of the rental market comes from employment data released early this month. It appears that the financial sector... [more]
The Real Estate Group of New York's October Manhattan Rental Market Report, released today, says rents are up .7% since last month and 5.52% compared to last year. Inventory rose by a mere whisper of .7%.
What accounts for the up market? According to TREGNY, “The best news for the health of the rental market comes from employment data released early this month. It appears that the financial sector in New York City has stopped cutting and started adding back jobs into the market." Looks like the Wall Street Journal didn't get the memo.
Last week, the Journal reported that the headcount of the city's investment banking and securities industry plunged by almost a quarter since last September. The story is locked behind the WSJ's paywall but helpfully reprinted on a StreetEasy thread discussing the pessimistic bonus and employment outlook at the city's largest banks. So whether or not the financial sector is behind September's positive rental market results, negative momentum may be coming soon to a vacancy near you.
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Response by jason10006
about 15 years ago
Posts: 5257
Member since: Jan 2009
We will see. Adjusted for inflation, rents are unchanged for over a decade in Manhattan per Jonathan Miller.
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Response by jim_hones10
about 15 years ago
Posts: 3413
Member since: Jan 2010
Jason, "adjusted for inflation" blah blah blah.....people not hearing what they want USUALLY begin as sentence along these lines "adjusted for, acounting for" and Usually end them with phrases like "according to, or says so and so".
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Response by jim_hones10
about 15 years ago
Posts: 3413
Member since: Jan 2010
Now cc is going to chime in and say something like "troll"
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Response by Rhino86
about 15 years ago
Posts: 4925
Member since: Sep 2006
Rents are inflation. You dont adjust rents for inflation, but either way they are flat in Manhattan since 2000.
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Response by cccharley
about 15 years ago
Posts: 903
Member since: Sep 2008
This is true. I pay less than I did in 2000 for a larger apt.
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Response by stevejhx
about 15 years ago
Posts: 12656
Member since: Feb 2008
"You dont adjust rents for inflation"
Yes you do. You adjust everything for AVERAGE inflation. Rents are one component of the inflation calculation, albeit a large one.
Rents were up in October slightly in my building, but they're coming back down again.
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Response by Rhino86
about 15 years ago
Posts: 4925
Member since: Sep 2006
Steve thats a pretty small distinction isnt it? Its your classic stock vs real estate argument based primarily on the idea that rents dont rise in real terms.
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Response by veyello
about 15 years ago
Posts: 24
Member since: Oct 2010
Good Rhino, now call Steve a "gay translating accountant".
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Response by stevejhx
about 15 years ago
Posts: 12656
Member since: Feb 2008
No it's not a pretty small distinction. Rents don't rise in real terms - which is why you have to adjust them for inflation to figure that out. Otherwise, if you didn't adjust them, they would appear to be rising.
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Response by Aurence
about 15 years ago
Posts: 12
Member since: Dec 2009
As a real estate professional, I keep track of apartments for rent at http://www.Rent-Direct.com. I don't know on what basis Jonathan Miller claims that rents haven't changed, but he is wrong if he is talking about Manhattan, below 96th Street. He'd also be wrong if he was talking about certain areas in the boroughs, such as Williamsburg, Astoria, Riverdale, Brooklyn Heights, Park Slope, and Clinton Hill. There are probably other pockets that have definite gone up over the past decade. But that still leaves plenty of other areas where rents have probably not changed much.
We will see. Adjusted for inflation, rents are unchanged for over a decade in Manhattan per Jonathan Miller.
Jason, "adjusted for inflation" blah blah blah.....people not hearing what they want USUALLY begin as sentence along these lines "adjusted for, acounting for" and Usually end them with phrases like "according to, or says so and so".
Now cc is going to chime in and say something like "troll"
Rents are inflation. You dont adjust rents for inflation, but either way they are flat in Manhattan since 2000.
This is true. I pay less than I did in 2000 for a larger apt.
"You dont adjust rents for inflation"
Yes you do. You adjust everything for AVERAGE inflation. Rents are one component of the inflation calculation, albeit a large one.
Rents were up in October slightly in my building, but they're coming back down again.
Steve thats a pretty small distinction isnt it? Its your classic stock vs real estate argument based primarily on the idea that rents dont rise in real terms.
Good Rhino, now call Steve a "gay translating accountant".
No it's not a pretty small distinction. Rents don't rise in real terms - which is why you have to adjust them for inflation to figure that out. Otherwise, if you didn't adjust them, they would appear to be rising.
As a real estate professional, I keep track of apartments for rent at http://www.Rent-Direct.com. I don't know on what basis Jonathan Miller claims that rents haven't changed, but he is wrong if he is talking about Manhattan, below 96th Street. He'd also be wrong if he was talking about certain areas in the boroughs, such as Williamsburg, Astoria, Riverdale, Brooklyn Heights, Park Slope, and Clinton Hill. There are probably other pockets that have definite gone up over the past decade. But that still leaves plenty of other areas where rents have probably not changed much.