Prices, incentives help move rentals, Citi Habitats says

TRD New York /
Aug.August 08, 2009 01:48 PM

Citi Habitats says it has seen an increase in Manhattan rental transactions this year despite a market that has been epically lethargic for some firms.

The number of rental deals rose year-over-year in second-quarter 2009 and in the first half of 2009, according to a Citi Habitats report released this week. The report does not cite rental transaction figures, but it does examine vacancy rate changes.

The vacancy rate across the borough dropped to 1.88 percent from 2.36 percent between the first and second quarters of the year.

“It is very clear that prices and incentives have played a larger role in the rental marketplace during the first half of 2009 than in the first half of 2008,” the report says.

Citi Habitats President Gary Malin said that a down market can encourage people to move because of a drop in rental prices.

“People are moving to get better deals,” Malin said. But, “just because there’s a lot of demand and a lot of interest doesn’t mean landlords can just jack up prices.”

In the first six months of the year, the average rent for a studio and one-, two- and three-bedroom apartments was $3,072, compared to about $3,307 at the same time last year, Citi Habitats determined, a 7.1 percent drop.

Related Articles

Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

WeWork’s side businesses are fizzling

SoftBank to take control of WeWork at less than $8B valuation

Chicago’s ice-cold office market is finally heating up. But don’t get too excited

Miki Naftali and 1045 Madison Avenue (Credit: Getty Images, Google Maps)

Naftali accused of violating zoning laws at UES development

148 East 28th Street and Governor Andrew Cuomo (Credit: Google Maps and Getty Images)

Citing new rent law, building buyer wants money back

EB-5 sees investment boost, tensions flare between brokers and StreetEasy: Daily digest