Manhattan Rents Keep Going Up

Manhattan Rents Keep Going Up

Residential News » North America Residential News Edition | By WPJ Staff | September 12, 2013 11:12 AM ET

Rents for Manhattan apartments continue to rise, as increasing interest rates, tight credit and high prices make tenants hesitant to buy.

The median rental for an apartment in August was $3,150, a 3.6 percent increase from July and 1.8 percent higher than a year, according to a new report from Douglas Elliman. Rental prices in Manhattan have now increased for 26 consecutive months, the firm said.

The high prices are driving some renters to Brooklyn, where the median rent is 4.6 percent higher than a year ago at $2,850 a month, a five-year high.

In Manhattan, prices are going up even though there are more apartments available. The number of new rentals increased 44.9 percent from a year ago, but that was primarily the result of tenants unwilling to pay higher rents at renewal, the report concludes. The vacancy rates increased to 2.56 percent from 2.05 percent a year ago, which represents a more "normal seasonal pattern after last year's torrid rental price growth threw year-over-year comparisons out of sync."

Concessions from landlords are "rare," the report says, with only 2.5 percent of deals including some sort reward, typically one month's rent.

The median rental rate for a loft stands at $4,943, 27.2 percent increase from a year ago. At the other end of the spectrum, rents for apartments in the super-luxury category rose 27.5 percent in the last year to $10,827 a month.

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