Inventory tightens for Manhattan renters and buyers

New York /
Feb.February 07, 2012 09:00 AM

Inventory is dwindling for both Manhattan renters and buyers, according to two recent market analyses, and that’s pushing apartment rents and prices higher.

Citi Habitats figures cited by the Wall Street Journal show just 2,230 new rental units will arrive in Manhattan this year, as the construction slowdown during the recession starts to rear its head just as apartment demand is at its highest. Many people have turned to renting in the uncertain economy and the vacancy rate during the typically lax winter months currently sits at just 1.27 percent.

The rental construction that began to pick up with the market likely won’t bear fruit until late next year or early 2014, meaning conditions will stay tight for the foreseeable future, Citi Habitats said. The Journal said those conditions will reward the Related Companies and Metro Loft Management who are bringing 232 units and 418 units, respectively to 102nd Street and Park Avenue and John Street in the coming months. Rents for one-bedroom apartments in new developments average $3,984 per month, according to the data.

Meanwhile, Crain’s reported that a Vanderbilt Appraisal Company analysis shows declining inventory is stabilizing prices for Manhattan apartments. The appraisal firm said when there’s six to nine months worth of inventory prices are stable; anything less than that and prices rise, anything more and prices fall. In Midtown there’s still 15 months worth of inventory, but on the Upper West Side there are just 1,016 units on the market — a six month supply. The Upper East Side has 10 months worth of apartment supply and Downtown there exists an eight month supply. As a whole, there are 6,400 units for sale in Manhattan, down 13 percent from September, representing less than nine months worth of inventory. [WSJ] and [Crain’s]


Related Articles

arrow_forward_ios
A photo illustration of the national housing shortage (iStock)
Strapped supply turned housing shortages national before pandemic frenzy
Strapped supply turned housing shortages national before pandemic frenzy
(iStock/Illustration by The Real Deal)
Here’s where NYC rentals are available and where they aren’t
Here’s where NYC rentals are available and where they aren’t
An illustration of sad homebuyers (iStock)
Housing affordability drops to 15-year low: Zillow
Housing affordability drops to 15-year low: Zillow
(iStock, Illustration by Kevin Cifuentes for The Real Deal)
Existing-home sales slide in May as price passes $407K
Existing-home sales slide in May as price passes $407K
Where have all the sellers gone?
Where have all the sellers gone?
Where have all the sellers gone?
EisnerAmper chair of real estate services Lisa Knee (EisnerAmper)
Listings shortage could endure for years, experts say
Listings shortage could endure for years, experts say
300 West 122nd Street, Bespoke Living’s Rachel Medalie and Madison Realty Capital's Josh Zegen (StreetEasy, Douglas Elliman)
West Harlem condo gets $160M inventory loan
West Harlem condo gets $160M inventory loan
In Brooklyn and Queens, the number of homes on the market have fallen (Credit: iStock)
Brooklyn, Queens home sales grew as inventory plummeted last quarter
Brooklyn, Queens home sales grew as inventory plummeted last quarter
arrow_forward_ios

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

Loading...