Are rents expected to decrease?

There was a recent report by one of the real estate companies (or a related entity) that indicated that rents have come down a bit. It's hard to say if it was seasonal or the economy. It also depends on the neighborhood.

Interestingly, an economist interviewed by the Real deal (therealdeal.net)indicated that he thought uncertainty in the sales market might drive rents up in 2008.

So, it is hard to say. Seems like they are a little bit down now.

I saw an article that said studio apts in doorman bldgs renting for $2500 have dropped $500...i doubt that it's across the board.

Rents in luxury doorman buildings on the upper east side are way down in the last 6 months. 2 bed 2.5 bath apartments that had been going for $6000 per month 6 months ago are now listed for $5400 per month with a free month thrown in on top with a 1 year lease. 1 bedroom luxury doorman apartments that had been listed at $3800 per month are now down to $3200 a month.

I have been getting the same rents in my buildings as this time last year, but obviously not as much as summertime.

MAV, thanks for your comment. Do rents generally increase in the summer?

I think its as simples as: If layoffs continue in wallstreet.. rents will come down.

waiting for more shoes to drop (bond insurers?, more companies admitting to holding the toxic waste)

I saw an real estate ad and it has been on and off for a while for a 3 bedroom duplex unit, around 1,200 sq.ft near Central Park in Manhattan, the owner has Psychotic Disorders and is willing to rent it out desperately for $1,800 per month.

Also, there has been a spate (and will likely be many more) of higher-end condo rentals. If that's your market, prices for these luxury units will be relatively cheap. There still will be fewer and fewer affordable apartments, particularly as many units are nearing the "luxury" market deregulation rate of $2000 per month. Just like all property in the city, residential sales and rental and commercial leasing, there's alot at the higher end, but little to none at the reasonable. The reasonable will, ironically, probably become more expensive as there is such a lack, while the expensive may become more reasonable as there is an increasing amount. NYC is crazy.

Excellent question, and one that the press is certainly trying to wrangle out of us almost daily. For those of you who may be unaware we publish the only MONTHLY rental market report here in Manhattan (http://www.tregny.com/reports.jsp), and after tracking the market for the last year+ I can tell you with certainty that prices have been and do look to continue coming down. As for the question asked, I just read in Crain's yesterday that "Wall Street provided 23% of all income on a little less than 5% of total jobs". So my conclusion would be as follows; I expect rents to continue to decline due to all of the economic uncertainty, at least for the short term, but how far they will go depends more on how much of Wall Streets income generation effects employment in other sectors across the city, rather than employment in finance alone.

Rents are decreasing..my friend just rented a one bedroom elevator (no doorman) on east 18th street for $1,850..I saw it and was shocked that it really is a one bedroom.