Manhattan Apartment Rents Fall as Landlords Offer Breaks | Bedford Corners Homes
Manhattan apartment rents fell for a fourth month in December and the share of new leases with landlord concessions jumped to an almost three-year high as potential tenants were lured to the surging homebuying market.
The median monthly rent dropped 1.6 percent from a year earlier to $3,100, according to a report today by appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate. Incentives such as a month’s free rent were offered on 13 percent of new agreements, up from 4.3 percent in December 2012 and the biggest proportion since March 2011.
Rents began dropping in September after 27 months without a decrease, giving tenants more negotiating power. A spike in mortgage rates from near-record lows in May drove buyers to act before purchases could become costlier. In the fourth quarter, sales of co-ops and condominiums in Manhattan reached the highest total for the period in 25 years of record-keeping, Miller Samuel and Douglas Elliman said last week.
“The rental market is cooling off a little bit,” Jonathan Miller, president of New York-based Miller Samuel, said in an interview. “It’s not an indication that the market is weak, they’re just off this frothy activity we’ve had for two years.”
The apartment vacancy rate was 2.79 percent in December, up from 1.77 percent a year earlier and the the second-highest since Miller Samuel and Douglas Elliman began tracking the data in August 2006. The number of new leases fell 27 percent to 2,109 agreements, the fewest since September 2011. The average landlord discount was equivalent to about one month’s rent, the firms said.
http://www.bloomberg.com/news/2014-01-09/manhattan-apartment-rents-fall-as-landlords-offer-breaks.html
The median monthly rent dropped 1.6 percent from a year earlier to $3,100, according to a report today by appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate. Incentives such as a month’s free rent were offered on 13 percent of new agreements, up from 4.3 percent in December 2012 and the biggest proportion since March 2011.
Rents began dropping in September after 27 months without a decrease, giving tenants more negotiating power. A spike in mortgage rates from near-record lows in May drove buyers to act before purchases could become costlier. In the fourth quarter, sales of co-ops and condominiums in Manhattan reached the highest total for the period in 25 years of record-keeping, Miller Samuel and Douglas Elliman said last week.
“The rental market is cooling off a little bit,” Jonathan Miller, president of New York-based Miller Samuel, said in an interview. “It’s not an indication that the market is weak, they’re just off this frothy activity we’ve had for two years.”
The apartment vacancy rate was 2.79 percent in December, up from 1.77 percent a year earlier and the the second-highest since Miller Samuel and Douglas Elliman began tracking the data in August 2006. The number of new leases fell 27 percent to 2,109 agreements, the fewest since September 2011. The average landlord discount was equivalent to about one month’s rent, the firms said.
http://www.bloomberg.com/news/2014-01-09/manhattan-apartment-rents-fall-as-landlords-offer-breaks.html
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