Aftershock of Manhattan’s rising residential rents ripple throughout city

New York /
Apr.April 23, 2012 09:30 AM

Manhattan’s record-high rents, which are isolated from the still uneven economy, are driving several significant changes in the market, according to the New York Times. Brokers say more young people are sharing apartments, and even sacrificing a living room in the process, in order to ease the burden of rising rents. Other renters, who in the past would only consider Manhattan, are being drawn to the outer boroughs. Big landlords in the boroughs, like LeFrak Organization, report all-time high rents as a result of that demand.

Finally, some would-be renters that can secure a loan are diving into the sales market, rather than paying higher rents or shelling out a broker’s fee and other moving costs to find a better deal.

But for renters unable to secure that loan, there’s little end in sight for the surging prices. Citi Habitats President Gary Malin told the Times, unless another major financial catastrophe hits, rents would stop rising only when the supply begins ascending. But just 2,229 rental apartments are scheduled to be added in Manhattan this year, a 30 percent drop from the average number over the previous seven years. [NYT]


Related Articles

arrow_forward_ios
From left: Attorney General Merrick Garland and RealPage CEO Dana Jones (Getty, The United States Department of Justice, RealPage)
Justice Department investigating RealPage
Justice Department investigating RealPage
From left: Hudson Valley Property's Richard Lanzarone, Attorney General Letitia James, Belkind Burden Goldman’s Matthew Brett, and Kingston Mayor Steve Noble (Kingston, Belkind Burden Goldman, Getty, LinkedIn)
Kingston rent stabilization blocked, possibly for good
Kingston rent stabilization blocked, possibly for good
Equity Apartments' Sam Zell and 155 Washington St Ste A in Jersey City (Equity Apartments, 
Getty)
Sam Zell’s hard lesson about Jersey City rent control
Sam Zell’s hard lesson about Jersey City rent control
JLL Income's Allan Swaringen
JLL really wants to be a single-family megalandlord
JLL really wants to be a single-family megalandlord
From left: Peter Hungerford, Shai Segev, and Michelle Haruvi (Getty, LinkedIn, Zillow)
She wanted a piece of the Haruvi empire. She got an eviction notice instead
She wanted a piece of the Haruvi empire. She got an eviction notice instead
NYC renters going solo
More NYC renters going solo: report
More NYC renters going solo: report
Haven Realty Capital's Sudha Reddy, JPMorgan Chase's Jamie Dimon and Bella View in Atlanta, GA (Getty, Haven Realty Capital, JPMorgan Chase)
JPMorgan aims to acquire $1B in single-family rentals
JPMorgan aims to acquire $1B in single-family rentals
For the Many’s Brahvan Ranga (For the Many, Getty)
Kingston tenants score New York’s first rent rollback
Kingston tenants score New York’s first rent rollback
arrow_forward_ios

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

Loading...