Aftershock of Manhattan’s rising residential rents ripple throughout city

TRD 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
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

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

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

A new rent law is causing confusion (Credit: iStock)

Widespread confusion over preferential rents opens the door for rent hikes

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

(Credit: iStock)

Manhattan homebuyers continue “camping out” in the rental market: Elliman

441 Ocean Avenue and 1745 Caton Avenue in Brooklyn (Credit: Google Maps)

Meridian Properties buys pair of
rent-stabilized buildings for $35M

(Chart by Miller Samuel)

Cautious buyers are pushing up Manhattan rent prices

arrow_forward_ios