RENTS JUMP 10% – CONGRATULATIONS TO OUR MANHATTAN PROPERTY INVESTORS!
Economics 101 is playing out in Manhattan as tight supply and strong demand sent Manhattan rental rates skyrocketing 10% over last year, according to Citi Habitats most recent quarterly report on Manhattan rentals.
Rent spikes hit all neighborhoods and apartment sizes during the second quarter.
SoHo and Tribeca have the top average rental rates of $5,046 per month followed closely by Chelsea and West Village which come around $4,100 per month.
A tight supply contributed significantly to the rental increase, as the Manhattan vacancy rate fell to 0.72% during the second quarter, the lowest vacancy rate on record since Citi Habitats began tracking vacancy rates in 2002.
A separate report for release by Jonathan Miller also found that Manhattan rentals are rising, but his data found that average rent levels were up 3.5% in the second quarter compared with the year-earlier period.
The New York apartment market has fully recovered from its low point in July 2009 when 60% of all Manhattan rental transactions involved landlord concessions, such as a month free rent or payment of brokerage fees. These concessions are a thing of the past!