Manhattan rents fell as much as 7 per cent in the year ended Dec 15 as the recession helped some tenants move up to larger apartments for less.
Rents for studio apartments dropped 7 per cent to an average of US$2,247 a month in the period, the Real Estate Group of New York said on Tuesday. One- bedroom apartments fell 5.6 per cent to US$3,262. Both figures are for buildings with doormen.
‘The biggest difference between this year and last year is the amount of inventory,’ said Andrew Barrocas, chief operating officer of the Real Estate Group of New York.
Rents in Manhattan are falling as unemployment climbs. Seasonally adjusted joblessness in New York City rose to 10 per cent in November, the state Labor Department reported on Dec 17.
The city lost 25,200 finance-related jobs, including banking, securities and commodities, in the year ended Nov 30, including 700 last month.
In buildings without doormen, studio apartments fell by 3.8 per cent to US$1,921, while one-bedrooms fell less than one per cent to US$2,636.
New luxury rental buildings with amenities such as doormen include the 1,359 unit Silver Towers on West 42nd street as well as 808 Columbus, part of a five-building complex in development on the Upper West Side, Mr Barrocas said.
Source: Business Times, 24 Dec 2009