There's no stopping Manhattan’s rent mania.
High demand and limited inventory pushed the average Manhattan rent
to a new record high of $3,429, blowing past March’s previous record of
$3,418, according to brokerage firm Citi Habitats.
April’s rents are about 3% above where they were in April 2011.
“A desirable apartment can be rented within hours of it hitting the market, and sometimes even less,”
Citi Habitats President Gary Malin told the Daily News.
The borough’s vacancy rate during April was a narrow 1.16%. That’s
down from March’s rate of 1.25%, but up from April 2011’s rate of 0.94%.
Landlord concessions — a free month’s rent and/or payment of the
broker’s fee — were included in just 9% of rental transactions brokered
by Citi Habitats.
A key factor stoking Manhattan’s sizzling rental market is lack of
new inventory. Citi Habitats estimates that just 2,230 new rental units
will hit the Manhattan market during 2012, the lowest level in seven
years.
Don’t expect relief any time soon. The borough’s escalating rents
come just as we are entering the busiest rental season of the year.
“I suspect rental prices will continue to escalate for the
foreseeable future,” Malin said. “Rents may stabilize or even retract
slightly after the summer season, but I don’t predict any massive price
declines.”
While prices on average are sky high, those willing to settle for
less than glam apartments might still be able to find something they
can afford.
The average price of an apartment in a walkup building was $3,199
in April, more than 40% below the average rent in a new doorman
building, Citi Habitats said.
In this kind of competitive market it pays to act quickly, Malin advised.
“When you see an apartment you like, you will need to put down a deposit immediately, in most cases,” he said.
“In this market, the first person that can give the landlord the money and paperwork, wins.”