Dec
02

Federal Reserve Releases Beige Book For New York

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New York-Federal Reserve Beige Book 12-2-2009

On Wednesday December 2nd the Federal Reserve released the Beige Book for the Second District–New York. Below are the report’s highlights regarding New York City.

  • The Second District’s economy has shown further signs of improvement since the last report, though the labor market remains soft.
  • Residential real estate markets have been mixed since the last report, but generally weaker, especially at the high end of the market; New York City’s sales and rental markets have been particularly weak.
  • New York City’s housing market has continued to weaken: while sales activity for existing apartments has rebounded from depressed levels, sales of new units remain very sluggish. Selling prices for existing units are reported to be down roughly 25 percent from a year earlier, with even steeper declines at the high end
  • New York City’s rental market also continues to weaken, with contract rents in Manhattan falling roughly 10 percent over the past 12 months; moreover, when concessions are factored in, the decline in effective rents has been a good deal steeper.
  • There are signs of a pickup in tourism activity in New York City.
  • Consumer confidence among New York State residents edged down in both September and October, after reaching its highest level in more than a year in August.
  • Tourism activity in New York City has picked up since the last report
  • Manhattan hotels report that occupancy rates exceeded year-earlier levels in both September and October, for the first time in more than a year
  • Hotel room rates climbed by substantially more than the seasonal norm in September and October, though they are still down 15-20 percent from last year.
  • Broadway theaters report a pronounced pickup in attendance as well as revenue

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