Manhattan rental market recovered: report

The Manhattan rental market has now fully recovered to pre-downturn levels, according to Citi Habitats’ May market report released today. Just 0.69 percent of Manhattan rental units were vacant in May, the lowest level in five years. And that’s not due to lower prices. Thanks to year-over-year price gains of 8 to 10 percent across all unit sizes, the average Manhattan monthly rent jumped to $3,353, just 1.2 percent less than the 2007 peak. “The Manhattan rental market is nearing the conditions seen at the market’s peak,” said Gary Malin, president of Citi Habitats. “Apartment-seekers need to be aware that conditions are 180 degrees from where they were last year.” Perhaps the best proof of that comes in the sharp decline in the number of landlord incentives. While 60 percent of leases included some sort of concession at the depths of the downturn, and 34 percent of leases had them last May, just 8 percent of leases included concessions in May. Despite the incredible free-market demand, two-thirds of city apartments remain under rent regulation or are subsidized. TRD