Report: Manhattan Rental Prices Soar To Record Heights
A new report shows rental prices in Manhattan have hit a record high, with the priciest pads located in SoHo, TriBeCa and the West Village. NY1's Jill Urban filed the following report.
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Manhattan rents are higher than ever, according to a new report released by Citi-Habitats.
"Rents are at an all time high. They have surpassed the numbers of 2007," said Citi Habitats Executive Vice President and Director of Rentals Gordon Golub. "On average the rents are $24 greater than they were in 2007 and they are the highest they have ever been since they started tracking these numbers in 2002."
Golub says the new data shows rents in every building category and apartment type have increased across the board.
The report finds the highest average rents were found in Soho, TriBeCa and the West Village and the lowest were in Washington Heights, Harlem and the Upper East Side. The largest price increases are being seen in one and two bedroom apartments where the average rents jumped about six percent from this time last year.
"Rents for studios are close to $2,000 on average; one bedrooms are $2,700; two bedrooms are $3,800; and three bedrooms are around the $5,000 price range," Golub noted. "And the numbers differ depending on the style of building from walk up to luxury doorman buildings."
Overall, Manhattan’s vacancy rate remains at about one percent depending on the neighborhood and many expect things to get even tighter.
"We don’t see any relief in sight because there is not a lot of new product coming to the market on the rental end. There are about 2,200 new units coming to the market in new developments and that’s down from years past where we usually see typically 3,000 to 4,000 units coming to the market.
There are also fewer concessions. With few exceptions, the days of months of free rent or paid brokers fees are gone.
So with rents so high and interest rates so low, that rent versus buy debate could be swaying. If you’ve got the down payment and good credit, many agree that now is a golden opportunity to buy.
But for many, that’s not an option. So if you are looking to rent, Golub says be prepared. Landlords can afford to be selective so you need to make sure you are a qualified candidate. Also, you may need to manage your expectations and be willing to make some sacrifices during your search.