Citi releases first peak season rental report
Manhattan report shows average rents dropping September 23, 2009 12:45PM
Gary Malin, president of Citi Habitats
Citi Habitats released its first-ever peak season rental report today,
analyzing Manhattan's rental market performance during the industry's
peak months: May through August.
Citi Habitats President Gary Malin said in the report that the time period is particularly significant.
"During this period, the market experiences increased activity due to
several factors, including students graduating from schools and
universities, new hires relocating to Manhattan and current renters
reassessing their housing situation," Malin said. "Additionally, many
landlords stagger leases, when possible, so as to have leases end
during this period of higher demand."
The data, compiled using Citi Habitats' closed transactions, compares
average rents in studios and one-, two- and three-bedroom units, and
shows prices dropping. Average rents across the borough -- excluding
incentives -- dropped by 8 percent or more between May and August 2009,
compared to the same four months in 2008, with studio apartments and
two-bedroom apartments showing the steepest drop at 11 percent. (See
the full Citi Habitats report below.)
Despite the drop in prices, vacancy rates during the 2009 peak season
rose less than half a percentage point from the same time period a year
before. Citi Habitats also saw a sharp uptick in its rental
transactions -- it completed approximately 5,700 deals during peak
season 2009, approximately 1,100 more than in 2008.
Meanwhile, TDG/TREGNY has released its September 2009 Manhattan rental
market report showing that increased rental activity in September is
helping to stabilize prices. Still, the TREGNY report was reluctant to
predict a market recovery. "While September did show modest
improvement, the numbers are not strong enough to indicate that the
market will rebound this year," the report says. (See the full
TDG/TREGNY report below.)
The Real Deal recently looked at the state of the Manhattan rental market in a Webcast. TRD
CitiHabitats Peak Season 2009 Report
TREGNY
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Comments
Anonymous
How is the vacancy rate assessed??? Also, this report uses gross rents and exclueds incentives which can be 10 to 20% reduction in rent.
Comment #1 Posted By: Anonymous 09/23/09
Anonymous
1100 more deals but no news on whether or not this means they did more in revenue. I suspect they did 1100 more deals and did less revenue than the year before?
Comment #2 Posted By: Anonymous 09/23/09
Anonymous
exclueds incentives = TOTALLY MEANINGLESS
Comment #3 Posted By: Anonymous 09/23/09
Anonymous
Who needs incentives, its a rental report on how many units were rented.
Comment #4 Posted By: Anonymous 09/23/09
Anonymous
#4 clearly can't read.
Comment #5 Posted By: Anonymous 09/23/09
Anonymous
# 4: INCENTIVES WOULD BE CALCULATED AS DISCOUNT. iF A LANDLORD GIVES A FREE RENT, FREE INTERNET, FREE THIS AND THAT PLUS NO BROKER COMMISSION ( WHICH WAS NON! EXISTENT TILL THE CRASH) THEN THAT WILL BE FOR ALL PRACTICAL PURPOSES RENT REDUCTION SO THE RENTAL MARKET MAY BE IN A WORSE SHAPE THAN THE REPORTS SHOW AS IT DOES NOT ACCOUNT FOR THESE TYPES OF DISCOUNTS
Comment #6 Posted By: Anonymous 09/23/09
Anonymous
What a loser this person is ref to #4
Comment #7 Posted By: Anonymous 09/23/09
Anonymous
Although very handsome, it is time for a new picture.
Comment #8 Posted By: Anonymous 09/24/09
Anonymous
For awhile landlords had a free ride with renters paying 15% of a years rent as a fee to rent an apartment. Brokers now get a one month fee which is approximately 8% of a years rent. Which means they are getting approximately half as much as the year before. Many landlords are now offering one month free rent and are paying a one month fee to the brokers. Which means they are getting 16% less then the year before. Many also have to lower asking rents. If the stock market corrects then rents will go even lower.
Comment #9 Posted By: Anonymous 09/25/09