Three years after Lehman collapse, Manhattan and Brooklyn rents on the rise

Source: MNS

This month marks the three-year anniversary of the Lehman Brother’s collapse, September monthly rental reports for Manhattan and Brooklyn, released today by MNS, note. Rents in neighborhoods such as Tribeca, Soho and Greenwich Village have fared best during the recovery, mostly maintaining their values, the report shows, increasing by around 13 percent from 2008.

As for month-over-month increases, the report indicates a small degree of positive growth.

“As predicted, this September brought nominal growth in average rental prices compared to August, but the rental market in both Manhattan and Brooklyn continues to be strong,” said Andrew Barrocas, CEO of MNS.

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Rents increased 1.3 percent for Manhattan one-bedrooms on a month-over-month basis, 1.6 percent for two-bedrooms, but decreased by 2.7 percent for studios. Prices are up in Manhattan 0.8 percent overall compared to August, with 0.2 percent in non-doorman units and a slight decrease of 0.04 percent in doorman properties.

The average rent for a non-doorman studio in Tribeca, the most expensive area for this category, was $4,150, for a doorman studio in Soho it was $3,350. A non-doorman studio in Harlem, the cheapest area, runs $1,460, compared with a doorman studio, which costs $1,651.

For two-bedrooms, a doorman unit in Tribeca costs on average $8,375 while in Harlem it costs $3,490. Without a doorman, a Tribeca two-bedroom costs $8,375 and in Harlem, $3,490.

Overall, Brooklyn rental prices are continuing to rise, the report says, but are still lower compared to Manhattan. The best Brooklyn deals can be found in Bedford-Stuyvesant and Clinton, while Boerum Hill and Park Slope continue to see price increases. — Katherine Clarke

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