Manhattan Rental Market Implodes: Median Rent Plunges Most Ever As Vacancies Hit Record High
July 10, 2020 Jordan Financial
Manhattan Rental Market Implodes: Median Rent Plunges Most Ever As Vacancies Hit Record High It’s nost just Manhattan’s housing market that is getting crushed in recent weeks: the city’s rental market is also starting to show the damage from a pandemic-fueled exodus.
According to Douglas Elliman Real Estate and appraiser Miller Samuel, the borough’s apartment-vacancy rate in June rose to the highest on record. Available listings surged 85% from a year earlier to 10,789, an all-time high for a single month.
Predictably, all that excess inventory has put a dent in pricing with the median rent tumbling 6.6% to $3,242, the first decline in 18 months and the biggest in data going back to October 2011, according to Jonathan Miller, president of Miller Samuel.
“It does give context to the scale of the movement out of Manhattan during the crisis,” Miller said in an interview with Bloomberg, which notes that “many New Yorkers have lost their taste for dense city living while the coronavirus raged, shuttering office buildings and giving people few reasons to stick around.”
The delayed response is because apartments vacated during the three- month lockdown were heaped onto the market at the end of June, when the state lifted the ban on in-person real estate showings.
New lease signings jumped 45% last month from May, with 3,171 apartments finding takers, Miller Samuel and Douglas Elliman said. To get those tenants, landlords had to offer average rent discounts of 2%, more than double what they were giving last year. They also piled on sweeteners, such as free months and payment of broker fees, in 45% of deals.
Even with all that, the vacancy rate still climbed to 3.67%, a record in data going back to August 2006. The rate had never before topped 3%, according to Miller.
“We’re in for a summer season that is going to be all about supply,” he said.
Poster Comment:
Charts at source.
#1: NeoconsNailed To: BTP Holdings (#0)
Once again, Manhattanites have only themselves to blame for any actual realty drama going on. All the media giants and a great deal of the political power that sold us on the corona HOAX are headquartered there. They live in a bubble of libdem unreality, so just believed what establishment dished out at them.
NeoconsNailed posted on 2020-07-10 09:54:27 Reply Private Reply
#2: Lod To: NeoconsNailed (#1)
A better description, imo.
Lod posted on 2020-07-10 13:05:33 Reply Private Reply
#3: NeoconsNailed To: Lod, Ada (#2)
https://nypost.com/2019/10/05/why-manhattans-property-price-bloodbath- is-a-reason-to-cheer/
NeoconsNailed posted on 2020-07-10 13:28:50 Reply Private Reply
#4: Ada To: NeoconsNailed (#3)
If you are not sure of your job, you will hesitate to renew your apartment lease.
Ada posted on 2020-07-10 20:38:16 Reply Private Reply
#5: NeoconsNailed To: Ada (#4)
NeoconsNailed posted on 2020-07-10 21:47:36 Reply Private Reply
#6: Ada To: NeoconsNailed (#5)
Ada posted on 2020-07-11 09:34:06 Reply Private Reply
#7: Lod To: Ada, NN, all (#6)
Which is effectively a 17% rent reduction.
Lod posted on 2020-07-11 10:02:53 Reply Private Reply
#8: noone222 To: BTP Holdings (#0)
Nonsense !
Think "MAD MAX" or"ESCAPE FROM NEW YORK" ... the homeless will be shooting up Fentanyl in what were once the offices of the High and Mighty - Wall Street and Goldman Sachs ... All over America will witness the evacuation of unnecessary work spaces due to being able to work from home which is curerently being beta tested.
noone222 posted on 2020-07-11 10:47:26 Reply Private Reply
#9: BTP Holdings To: noone222 (#8)
My Mom was on dialysis for a number of years. She was taking this pain med called Dilaudid.
I knew a kid that was working with sheet metal. He would do it in his bare feet.
He cut this foot on that sheet metal and was in pain. I gave him one of those pills and he told me it worked like a charm. ;)
BTP Holdings posted on 2020-07-11 11:01:01 Reply Private Reply
#10: NeoconsNailed To: Ada (#6)
Can you remember any of the others? Not trying to put you on the spot.
NeoconsNailed posted on 2020-07-11 11:04:48 Reply Private Reply
#11: NeoconsNailed To: BTP Holdings (#9)
NeoconsNailed posted on 2020-07-11 11:06:21 Reply Private Reply
#12: noone222 To: BTP Holdings (#9)
We need a drug that will ease the pain of finding out that everything we ever learned or we told about relevant history was a big fat lie !
noone222 posted on 2020-07-11 11:11:50 Reply Private Reply
#13: Cynicom To: noone222 (#12)
Their school population is now 84 per cent people of color.
Cynicom posted on 2020-07-11 11:33:34 Reply Private Reply
#14: Esso To: Cynicom (#13)
Dreamy.
Esso posted on 2020-07-11 11:40:15 Reply Private Reply
#15: noone222 To: Cynicom (#13)
Well, don't get me to expressing some agreement with the "BELL CURVE" but the thing that's crazy is how much more they spend in NY to NOT EDUCATE the kids !
noone222 posted on 2020-07-11 11:41:12 Reply Private Reply
#16: BTP Holdings To: noone222 (#15)
I know a woman in NYC with an 8 y/o boy. She had him in private school and was working two jobs. Now she has lost both jobs and has no savings. She is worried if she cannot pay rent she might be evicted. It can and does happen. But it takes time to do it.
She asked me to buy her boy Amazon card but I have no money to do that. :-/
BTP Holdings posted on 2020-07-11 13:04:10 Reply Private Reply
#17: BTP Holdings To: NeoconsNailed (#11)
It dulls the pain. Getting pain under control is a big part of the healing process.
One time at night when out on snow and ice when working for State Highways, I stopped at Osco Drug and picked up a bottle of Aspirin.
I told the black guy at the register, "I feel like I been beat up."
He was laughing, but it was true. ;)
BTP Holdings posted on 2020-07-11 14:01:24 Reply Private Reply
#18: noone222 To: BTP Holdings (#16)
noone222 posted on 2020-07-11 15:00:50 Reply Private Reply
#19: Lod To: noone222, all (#18)
You'll never go broke.
Lod posted on 2020-07-11 16:21:50 Reply Private Reply
#20: Ada To: NeoconsNailed, Lod (#10)
Incentive for lease renewal would be upgrading the apartment with, say, new carpet or appliances.
For new renters in a tough market the landlord might offer to pay the broker's fee or reduce or even forego the security deposit. Landlord prefers to do business this way rather than give a large rent reduction.
Ada posted on 2020-07-12 10:01:44 Reply Private Reply
#21: NeoconsNailed To: Ada (#20)
NeoconsNailed posted on 2020-07-13 04:53:20 Reply Private Reply