Manhattan Rents Reach for the Sky

In spite of a still-bleak economy, the average cost of rent in Manhattan sits at an all-time high of $3,148 a month. And with a 1 percent vacancy rate and just over 2,200 rentals slated for construction this year, landlords will continue to dominate the market.

That is, unless another financial meltdown similar to the 2008 economic crash or some other interruption occurs.

In the meantime, soaring rents are creating tense relationships between landlords and tenants. Some renters are looking to share space or shopping elsewhere in the city, where apartments are typically less expensive. Some are simply biting the bullet and paying more.

According to a report by Citi Habitats, the average cost of a one-bedroom apartment has shot up 6.5 percent to $2,747 over the past year, while a three-bedroom place rose 4 percent to $5,107. –ARK

The New York Times:

… This spring, Manhattan rental prices seem to be divorced from the larger economic picture. While the city has added jobs in recent months and growth in businesses like technology has helped make up for losses in the financial sector, much of country is still struggling.

… The uncoupling of the national economy from New York rents is not typical, said Jonathan J. Miller, the president of the appraisal firm Miller Samuel. “When you see rents rising, it is usually reflective of a strong economy,” he said. “That is not the case now.”

Instead, he said, prices are being driven up by a tight credit market that forces people to stay in the rental market and limits new construction.

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