Archive for Rental Buildings
Manhattan Rental Market Overview 3Q 2009
Posted by: | Comments
Miller Samuel, an independent appraisal firm, and Prudential Douglas Elliman real estate today released the Manhattan Rental Market Overview.
The report tracks the 2549 apartment rentals in the third quarter of 2009 and compares the data to second quarter sales of this year as well as the same quarter sales of 2008 thus adjusting for seasonality.
Continued declines in rents may remove potential buyers who feel they are safer renting for a year or two while they wait for the bottom to occur in the residential sales market.
Highlights of the report include:
- The average rental per square foot was $47.84, down 9.4% from $52.80 in the prior year quarter, but an increase of 8.3% from the prior quarter result of $44.16. This suggests some easing in the rate of decline since the same metric in the prior quarter fell 17.5% year over year.
- There were 6,527 listings available at the end of the third quarter, 5.4% above the 6,191 listings in the same period last year, but 10.5 below the prior quarter total of 7,290 listings.
- Downtown had the highest rental price per square foot of the four regions and saw a modest increase over the summer, averaging $45.87 per square foot, up 2.9% from the prior quarter.
- One-bedroom apartments showed the largest gains over the summer, rising 6.3% to $46.62 per square foot from the prior quarter. Other than 2-bedroom apartments, which saw a 1% increase over the same period, all other types posted declines.
Manhattan Rental Market Report 2nd Quarter 2009
Posted by: | Comments
Miller 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.”
