Renting your piece of the Big Apple pie just got even more competitive and expensive as vacancy rates of 1% (or less) plague the Brooklyn/Manhattan rental scene.
“The median rent for an apartment in Manhattan rose 6.5 percent from last year, to $3,195 from $3,000”–Douglas Elliman Monthly Report
Via NY Observer:
“With supply tightening, rents are rising. According to Douglas Elliman monthly report for April, the median rent for an apartment in Manhattan rose 6.5 percent from last year, to $3,195 from $3,000. There were more transactions as well, 1.4 percent more than the previous year, for a total of 4,287 in Manhattan.
All of which points to historically high rents for this summer, smashing last year’s already record highs. Here’s what to expect, according to Bond’s Mr. Wagner: “One bedrooms in walk-ups will continue to range from $2400 to $3000 regardless of the neighborhood, and doorman one-bedrooms are starting at $3200 and ranging as high as $5500 in the most luxury developments. Two bedrooms in walk-up buildings range from $2600, with the best values on the Upper East Side, and they are more commonly $2800 – $4400 with the most expensive units located in Greenwich Village. Doorman two bedrooms can be expected to start at $3800 and mostly exceed $4500 up to $6600 in any Manhattan neighborhood below 100th Street.”
Availability is tightest and rents are highest in the West Village, and Chelsea, with TriBeCa and SoHo fast on their heels, so real estate executives advise value shoppers to look elsewhere. Mr. Wagner says better deals are to be found in Murray Hill and the Upper East Side, “where doorman two bedrooms are more commonly less than $5000 monthly.” In contrast, choice locations in the Village are asking as much as $8500 for two bedrooms, particularly close to Washington Square.
And when the lease is up, the rent goes up substantially. “Both major landlords and smaller ones are raising rents by 10-15 percent with each lease renewal,” says Andréa “Ande” Sedwick, senior vice president of NestSeekers. By way of comparison, back in 2007, lease renewals meant a 3-5% increase in rent. Nevertheless, Ms. Sedwick says, “More people are renewing. They are biting the bullet, rather than venture out into an ever more competitive market.”–New York Observer