Manhattan Rental Market Report 2nd Quarter 2009


Manhattan Residential Rental Report 2nd Quarter 2009Miller Samuel, an independent appraisal firm,  and Prudential Douglas Elliman real estate today released the Manhattan Rental Market Overview. The report tracks the 2346  apartment rentals that occured in the second quarter of 2009 and compares the data to first quarter sales of this year as well as the same quarter sales of 2008 thus adjusting for seasonality.

The market report shows that rental inventory year-over year was up 28.8% , there was a 17.5% year over year decline in rental price per square foot and a 58.3% decline in the number of new rentals. Interestingly, the average rental price in Q2 09 vs. Q2 08 shows a decrease of only .9%,

At the end of a very interesting article written by Jonathan Miller for the Huffington Post,  he confirms what I’ve seen is that there are a large number of first time buyers out there, and contracts are being written (and signed).

“One of the key culprits for the rental price and activity drop was the record low mortgage rates in the spring, which pulled many first time buyers out of the rental market (if they could qualify under the banks newly-found underwriting conservatism). Combine that shift with rising unemployment and there is less activity and downward pressure on rental prices.

One could therefore argue that the rental market is a leading indicator for the purchase market, at least in Manhattan. When the economy improves and the pace of unemployment begins to ease, the number of rentals should begin to rise, eventually followed by sales activity.”

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