Manhattan Apartment Rents Decline, Led by New Three-Bedrooms
Started by Slee
over 17 years ago
Posts: 113
Member since: Feb 2007
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July 10 (Bloomberg) -- Manhattan apartment rents fell in the first half, led by declines of as much as 16 percent for three- bedroom units in new buildings with doormen, as Wall Street job cuts and rising fuel and food prices deterred renters from moving. The average rent of a studio apartment fell 2.1 percent to $1,887 a month, according to a report today by Manhattan-based broker Citi Habitats.... [more]
July 10 (Bloomberg) -- Manhattan apartment rents fell in the first half, led by declines of as much as 16 percent for three- bedroom units in new buildings with doormen, as Wall Street job cuts and rising fuel and food prices deterred renters from moving.
The average rent of a studio apartment fell 2.1 percent to $1,887 a month, according to a report today by Manhattan-based broker Citi Habitats. Two-bedroom apartments also fell 2.1 percent, to an average of $3,769. Three-bedrooms declined 1.8 percent to $4,948. Only one-bedrooms rose, 2.2 percent to $2,623.
Manhattan residents have resisted paying higher rents amid rising household expenses and uncertainty about the economy. Gasoline topped $4 a gallon and the U.S. Department of Agriculture forecast food prices may rise as much as 5.5 percent on an annual basis, the most since 1989, this year. Wall Street firms have announced job cuts totaling about 67,000 in the Americas.
``Not a lot of people are moving right now,'' said Clifford Finn, managing director of new development marketing for Citi Habitats. ``They are either insecure about their jobs or they don't want to take on a new financial commitment.''
The rent declines are the first since at least 2002, when Citi Habitats started collecting data.
At new developments with doormen, the average rent dropped 1.2 percent to $2,721 for studios, 6.2 percent to $3,802 for one bedrooms, 2.8 percent to $6,606 for two-bedrooms and 16 percent to $9,392 for three-bedroom apartments, the broker said.
`Feeling a Pinch'
``There is no question that owners of residential properties here in Manhattan are certainly feeling a pinch,'' Citi Habitats President Gary Malin said in an interview. ``The question is how much of that can they potentially pass on to their tenants.''
In 2007, rents rose an average of 5.5 percent and in 2006 the increase was 10.4 percent, according to Citi Habitats.
``Over the last few years, landlords have been able to get unbelievable increases,'' Malin said. ``Sooner or later, prices adjust.''
At the building Dwell 95 Yoo by Starck, located at 95 Wall St. and designed by Phillippe Starck, developer the Moinian Group is offering move-in incentives including a month or two in free rent, depending on the term of the lease.
The building is Starck's first rental project and offers amenities such as Jenn-Air appliances, indoor and outdoor rooftop lounges, parking and concierge services. It has 503 units to rent ranging from $2,760-a-month studios to almost $8,000-a-month two- bedrooms.
``Even in the good times when owners brought new buildings to market, there were always incentives,'' Malin said. ``The goal is to get these buildings leased as fast as humanly possible.''
Vacancy rates are also rising in the city, increasing to 1.21 percent for June, compared with 0.76 percent a year earlier. The West Village had the lowest level of available apartments, 0.63 percent, and the Upper East Side had the highest proportion, 1.45 percent.
Brokers still advise New York apartment seekers to show up with tax documents and pay stubs in hand if they don't want competitors to scoop apartments out from under them.
``Being armed when you get here always is helpful,'' Malin said.
To contact the reporter on this story: Sharon L. Lynch in New York at sllynch@bloomberg.net
Last Updated: July 10, 2008 15:24 EDT
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Response by MMAfia
over 17 years ago
Posts: 1071
Member since: Feb 2007
Interesting- this is consistent with what I was anticipating where both rents and home prices will begin to decline. We shall see if there is confirmation and a follow-through in the coming quarters.
Thanks for the link.
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Response by spunky
over 17 years ago
Posts: 1627
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You mean rents have declined a whopping 1.8% to 2%. Sure in what part of Manhattan. Harlem, Far Upper east and Far Upper west side as well. Rest assure that rents have not decreased in Gramercy, West Village, Soho GV and Tribeca.
Kind of interesting how vacancy rates of 1.45% is shockingly high. Got love the spin of the media.
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Response by mschlee
over 17 years ago
Posts: 61
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just moved out of my one bedroom place in the west village - the rent went up 9% for the new tenents.
my apartment may not be typical, but it says to me that location and quality is very important.
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Response by mschlee
over 17 years ago
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are
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Response by julia
over 17 years ago
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This is exactly how the decline starts..people believe rents are dropping, sales are slowing, etc.
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Response by alpine292
over 17 years ago
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These rent declines are jokes... 1.8% is nothing.
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Response by EddieWilson
over 17 years ago
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> These rent declines are jokes... 1.8% is nothing.
With 4% inflation, that means a 6% decline...
Either way, thats QUITE a rationalization you've got going on, broker shill...
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Response by zorter
over 17 years ago
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Member since: Apr 2008
It makes sense that rents decline, more apartments not selling more sellers become renters. The beauty about the rental market is you only need one tennant per year.In my 2 apartments that are rentals I just got an increase from 2995.00 to 3295.00. The second one is on line for an Aug 1 tennant.I do foresee more renters in the future because as was always explained to me on this site it is cheaper to rent than to buy.
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Response by EddieWilson
over 17 years ago
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Actually, traditionally when prices tank, rents go up because of the "wait it out" shift.
This crash, we're getting a double whammy because there is pressure from all sides.... its not just folks who are shifting from buying to renting, its also folks who can't afford either now...
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Response by spunky
over 17 years ago
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"I do foresee more renters in the future because as was always explained to me on this site it is cheaper to rent than to buy."
Bingo-Well said Zorter
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Response by EddieWilson
over 17 years ago
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OMG, a moronic statement seconded by a second moron.
This quote assumes that there are the same number of folks in the market to rent OR buy. Making it nonsense. With all the layoffs, it 'aint gonna be even close....
Not to mention, even if the number stayed the same, there are TONS of stupid folk out there to make bad housing decisions... just look at everyone who bought in 2007. Just because renting was smarter didn't mean folks were going to do it.
You always have your idiots in a market situation. In NYC RE, we call 'em 2008 bulls.
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Response by dco
over 17 years ago
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The reason why rents and sales are decreasing in NYC can be summed up in one word, JOBS. Jobs are what is making both rents and sales decrease. Without a job you can't afford either. It really is that simple. Even with all these problems, if no one lost their job and/or weren't concerned about losing it, decreases in rents probably wouldn't happen. It's ironic, that the normally fantastic job market, which is credited for a strong housing market in NYC, will actually cause the demise.
JOBS, JOBS, JOBS....................Are the number one factor in rents and sales decreasing. The possibility, of one losing his/her job, is just as devastating to the RE market. Job uncertainty will prevent people from buying or renting new properties. Now ask yourself. How many people in NYC are worried about the possibility of losing their job? The answer equals lower demand. And with increasing inventories, this is why both rentals and sales will fall dramatically in the months to come.
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Response by alpine292
over 17 years ago
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I am not a broker. I once thought of becomong one, but I decided to finish high school instead.
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Response by spunky
over 17 years ago
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Okay rents are decreasing in Union Square, West Village, Greenwich Village, Soho and Tribeca. Yup, I believe that to bad those that are renting in these areas haven't been saving money on their monthly payments.
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Response by spunky
over 17 years ago
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But I do love to hear the broad based statements that rents are decreasing.
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Response by EddieWilson
over 17 years ago
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> But I do love to hear the broad based statements that rents are decreasing.
Great then... because you'll be hearing a lot of that...
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Response by spunky
over 17 years ago
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Great let me be the first to say then that all rents, no exceptions, all over the country are going down.
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Response by dco
over 17 years ago
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spunky- Your living in denial.
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Response by spunky
over 17 years ago
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dco you can continue generalizing that all rents in all Manhattan apts will and continue to decline if it makes you feel better.
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Response by EddieWilson
over 17 years ago
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We can have a 90% drop in RE across the country, but spunky's gonna call it a "strong market" because the lady who had a $50 rent went to $51 with the rent stabilization increase.
I'm not sure if its being dumb, or playing dumb, but the result is the same... these are the putzes who get killed in crashes like this.
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Response by totallyanonymous
over 17 years ago
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its ALL about location. Sure, in the financial district, you guys are fucked but in the villages, west and east, the demand side of the equation does not lie.
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Response by babsie02
over 17 years ago
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the West Village is still insane!
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Response by totallyanonymous
over 17 years ago
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"And with increasing inventories, this is why both rentals and sales will fall dramatically in the months to come."
Just a question, but have you ever bought and sold an apartment in Manhattan let alone had tenants here?
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Response by EddieWilson
over 17 years ago
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Yes, nothing says "demand" better than a decline in sales of nearly HALF. At least the financial district has neighborhood improvements to look forward to...
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Response by totallyanonymous
over 17 years ago
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i was talking about rental demand, but the only thing you ever rented out is clearly your services to your employer.
imho, the financial district will be (pardon the pun) ground zero for real estate downturn. other neighborhoods will remain stable(r).
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Response by dco
over 17 years ago
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JOBS, JOBS, JOBS....................Are the number one factor in rents and sales decreasing. The possibility, of one losing his/her job, is just as devastating to the RE market. Job uncertainty will prevent people from buying or renting new properties. Now ask yourself. How many people in NYC are worried about the possibility of losing their job? The answer equals lower demand. And with increasing inventories, this is why both rentals and sales will fall dramatically in the months to come.
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Response by totallyanonymous
over 17 years ago
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you're correct dco, as it relates to certain neighborhoods in the city. but other nabes have a pent up demand. same reason why they're more expensive to begin with.
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Response by spunky
over 17 years ago
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dco and EddieWilson apparently you guys know more about the downtown Manhattan market better than anyone on this board. I wish you both great luck and fun posting your stuff on these threads.
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Response by EddieWilson
over 17 years ago
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thank you, spunky. Glad you're finally learning that you shouldn't be getting your info from brokers anymore.
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Interesting- this is consistent with what I was anticipating where both rents and home prices will begin to decline. We shall see if there is confirmation and a follow-through in the coming quarters.
Thanks for the link.
You mean rents have declined a whopping 1.8% to 2%. Sure in what part of Manhattan. Harlem, Far Upper east and Far Upper west side as well. Rest assure that rents have not decreased in Gramercy, West Village, Soho GV and Tribeca.
Kind of interesting how vacancy rates of 1.45% is shockingly high. Got love the spin of the media.
just moved out of my one bedroom place in the west village - the rent went up 9% for the new tenents.
my apartment may not be typical, but it says to me that location and quality is very important.
are
This is exactly how the decline starts..people believe rents are dropping, sales are slowing, etc.
These rent declines are jokes... 1.8% is nothing.
> These rent declines are jokes... 1.8% is nothing.
With 4% inflation, that means a 6% decline...
Either way, thats QUITE a rationalization you've got going on, broker shill...
It makes sense that rents decline, more apartments not selling more sellers become renters. The beauty about the rental market is you only need one tennant per year.In my 2 apartments that are rentals I just got an increase from 2995.00 to 3295.00. The second one is on line for an Aug 1 tennant.I do foresee more renters in the future because as was always explained to me on this site it is cheaper to rent than to buy.
Actually, traditionally when prices tank, rents go up because of the "wait it out" shift.
This crash, we're getting a double whammy because there is pressure from all sides.... its not just folks who are shifting from buying to renting, its also folks who can't afford either now...
"I do foresee more renters in the future because as was always explained to me on this site it is cheaper to rent than to buy."
Bingo-Well said Zorter
OMG, a moronic statement seconded by a second moron.
This quote assumes that there are the same number of folks in the market to rent OR buy. Making it nonsense. With all the layoffs, it 'aint gonna be even close....
Not to mention, even if the number stayed the same, there are TONS of stupid folk out there to make bad housing decisions... just look at everyone who bought in 2007. Just because renting was smarter didn't mean folks were going to do it.
You always have your idiots in a market situation. In NYC RE, we call 'em 2008 bulls.
The reason why rents and sales are decreasing in NYC can be summed up in one word, JOBS. Jobs are what is making both rents and sales decrease. Without a job you can't afford either. It really is that simple. Even with all these problems, if no one lost their job and/or weren't concerned about losing it, decreases in rents probably wouldn't happen. It's ironic, that the normally fantastic job market, which is credited for a strong housing market in NYC, will actually cause the demise.
JOBS, JOBS, JOBS....................Are the number one factor in rents and sales decreasing. The possibility, of one losing his/her job, is just as devastating to the RE market. Job uncertainty will prevent people from buying or renting new properties. Now ask yourself. How many people in NYC are worried about the possibility of losing their job? The answer equals lower demand. And with increasing inventories, this is why both rentals and sales will fall dramatically in the months to come.
I am not a broker. I once thought of becomong one, but I decided to finish high school instead.
Okay rents are decreasing in Union Square, West Village, Greenwich Village, Soho and Tribeca. Yup, I believe that to bad those that are renting in these areas haven't been saving money on their monthly payments.
But I do love to hear the broad based statements that rents are decreasing.
> But I do love to hear the broad based statements that rents are decreasing.
Great then... because you'll be hearing a lot of that...
Great let me be the first to say then that all rents, no exceptions, all over the country are going down.
spunky- Your living in denial.
dco you can continue generalizing that all rents in all Manhattan apts will and continue to decline if it makes you feel better.
We can have a 90% drop in RE across the country, but spunky's gonna call it a "strong market" because the lady who had a $50 rent went to $51 with the rent stabilization increase.
I'm not sure if its being dumb, or playing dumb, but the result is the same... these are the putzes who get killed in crashes like this.
its ALL about location. Sure, in the financial district, you guys are fucked but in the villages, west and east, the demand side of the equation does not lie.
the West Village is still insane!
"And with increasing inventories, this is why both rentals and sales will fall dramatically in the months to come."
Just a question, but have you ever bought and sold an apartment in Manhattan let alone had tenants here?
Yes, nothing says "demand" better than a decline in sales of nearly HALF. At least the financial district has neighborhood improvements to look forward to...
i was talking about rental demand, but the only thing you ever rented out is clearly your services to your employer.
imho, the financial district will be (pardon the pun) ground zero for real estate downturn. other neighborhoods will remain stable(r).
JOBS, JOBS, JOBS....................Are the number one factor in rents and sales decreasing. The possibility, of one losing his/her job, is just as devastating to the RE market. Job uncertainty will prevent people from buying or renting new properties. Now ask yourself. How many people in NYC are worried about the possibility of losing their job? The answer equals lower demand. And with increasing inventories, this is why both rentals and sales will fall dramatically in the months to come.
you're correct dco, as it relates to certain neighborhoods in the city. but other nabes have a pent up demand. same reason why they're more expensive to begin with.
dco and EddieWilson apparently you guys know more about the downtown Manhattan market better than anyone on this board. I wish you both great luck and fun posting your stuff on these threads.
thank you, spunky. Glad you're finally learning that you shouldn't be getting your info from brokers anymore.