Manhattan rental market showing signs of stability, report shows

TRD New York /
Nov.November 30, 2009 11:50 AM

While year-over-year rental prices have continued to lag, figures month-over-month have remained relatively stable, according to the November monthly Manhattan rental market report released today by TDG/The Real Estate Group of NY (see the full report below).

Rents dropped just .03 percent this November, compared to the month before. This figure is cause for some optimism, according to the report, because a more dramatic seasonal decline is typically seen during the month.

Daniel Baum, CEO of TDG/TREGNY, said that November’s strong showing was unexpected.

“We were actually somewhat surprised to see that November [prices] were [so stable],” Baum said. He attributed the unseasonally strong numbers to a delay in spring Wall Street hirings. Many Manhattan employers have actually begun taking on new hires this fall, according to Baum, which has created an uptick in demand.

Inventory also showed improvement in November compared to October, according to the data, with overall Manhattan rental inventory dropping 5.36 percent and non-doorman inventory down 11.94 percent.

Still, some neighborhoods continued to struggle. Soho prices continue to decline, according to TDG/TREGNY, a trend that Baum attributed to a continued focus on conservative spending among renters.

“There are still a lot of mixed signals in the marketplace,” Baum said.

Despite some economists’ outlook, he said that many consumers are concerned that the financial downturn many continue. Elevated unemployment figures in Manhattan have caused many renters to doubt the economic stability, Baum said. “A lot of people are still wondering how long this [financial downturn] is going to take.”

This translates into fewer high-end buildings — and doorman buildings — garnering renters, Baum said.

Baum said that he doubts the overall Manhattan rental market stability will continue, as seasonality catches up with the industry.

If rental prices drop in December, Baum said, “it wouldn’t surprise me at all.”

Market Report


Related Articles

arrow_forward_ios
(Credit: iStock)

The city’s rental growth is slowing

47 Greene Street and President & CEO of Acadia Realty Trust Kenneth F. Bernstein (Credit: Google Maps)

Acadia plows ahead with $122M retail investment in Soho

WeWork leases in Soho and Flatiron could be in trouble, according to a report (Credit: iStock)

WeWork leases in Soho, Flatiron most at risk: report

The massive meeting held in a suburban casino outside of Utica came at a time when the real estate industry is asking itself some tough questions. (Credit: iStock)

Meet the 400 landlords that are taking rent laws into their own hands

From left: 47-49 Greene Street, 129 West 46th Street and 457 Broome Street (Credit: Google Maps and Meridian Investment Sales)

Here’s what the $20M-$30M NYC investment sales market looked like last week

Olivia Gamber, the farmer-in-residence at Staten Island Urby’s Rabbit Garden

The Staten Island rental that’s luring in renters with tomatoes and hot peppers

Portland, Maine (Credit: iStock)

The states with the biggest share of vacation rentals aren’t where you’d think

Landlords are exploring “creative” ways of mitigating the impacts of the new rent law. (Credit: iStock)

How NYC landlords are trying to get around the new rent law

arrow_forward_ios