Manhattan rental vacancy rate dips to lowest level in three years: report

New York /
Aug.August 23, 2010 01:15 PM

Manhattan continued to see a decline in its rental vacancy rate last month, according to residential brokerage Citi Habitats’ July Manhattan rental market report (see full report below).

The overall vacancy rate dipped to .88 percent, down slightly from June’s .90 percent and May’s .98 percent, according to the report, which is based on Citi Habitats’ rental transactions. July’s level marks the lowest vacancy rate seen in almost three years.

July’s vacancy rate is down almost half from the same month a year earlier, when vacancy hit 1.67 percent.

While seasonal trends likely influenced this activity — July is among the busiest months for Manhattan’s rental market — Gary Malin, president of Citi Habitats said that seasonality alone is not driving vacancy rates downward.

“Historically, you always see vacancies getting very tight in the [summer],” Malin said, in part due to the influx of recent graduates and students that traditionally hits the borough. “[But New York City’s] unemployment rate has been going down steadily over the last few months [and] the vacancy rate has been going down every month since November 2009.”

Rents, meanwhile, stayed relatively stable compared to June. Studios and one-bedrooms remained mostly unchanged, with average rents of $1,818 and $2,492, respectively. Two-bedroom unit rents declined 2 percent with an average cost of $3,404 and three-bedroom apartments climbed 1 percent month-over-month, with an average rent of $4,622.

Malin said he expects a gradual, seasonal decline in activity as the colder months descend, but noted that the economy could still have a negative effect on the market, as well.

“You hear about the financial news — ‘is there going to be a double dip recession?'” Malin said. “Obviously those are issues that are going to have a potential impact on the market.”

July 2010 Citi Habitats Report

 

Related Articles

arrow_forward_ios
President Joe Biden and New York State Senator Brian Kavanagh. (Getty, Department of Treasury)
Federal guidelines could complicate state’s rent relief rollout
Federal guidelines could complicate state’s rent relief rollout
Mack-Cali Realty CEO Mahbod Nia and a rendering of Harborside 1 (Mack-Cali Realty)
Mack-Cali Realty revamps Harborside office complex
Mack-Cali Realty revamps Harborside office complex
The reopening of NYC has created a surge of demand for apartments. (Getty)
Reopening sparks signs of a real estate rush
Reopening sparks signs of a real estate rush
Non-New York residents who worked remotely last year will still have to pay New York taxes. (iStock)
NY tax officials crack down on remote workers
NY tax officials crack down on remote workers
Cushman & Wakefield CEO Brett White (Cushman)
Cushman eyeing M&A opportunities post-pandemic
Cushman eyeing M&A opportunities post-pandemic
Donald Trump and 40 Wall Street (iStock, Sterlfilms/Wikimedia)
40 Wall’s valuation chop means tax savings for Trump Org
40 Wall’s valuation chop means tax savings for Trump Org
Google CEO Sundar Pichai (Getty, iStock)
Google’s hybrid model will allow 20% of employees to work remotely
Google’s hybrid model will allow 20% of employees to work remotely
As the economy rebounds, rental prices are following suit. With the eviction ban recently overturned, that spells trouble for tenants who are struggling to make ends meet. (iStock)
Rents rise across country as economy rebounds
Rents rise across country as economy rebounds
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...