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Manhattan Rental Market Finally Feels the Headwinds

After enjoying high rental rates for the past few years, landlords in the Big Apple are finding it necessary to reduce rates and offer concessions.

By Sule Aygoren Carranza | Updated on August 22, 2008

NEW YORK CITY-It seems like the lagging economy and slow job growth figures are putting downward pressure on the Manhattan apartment market. Despite the sagging for-sale market, multifamily properties in the Big Apple aren’t seeing the rent growth that most would have expected, found the Real Estate Group in its most recent Manhattan Rental Market Report.

For its August study, the locally based firm compiled data from more than 10,000 listings for apartments below 155th Street and priced under $10,000. TREG found that average rents in the borough decreased across the board. Studio units in doorman buildings saw rates drop from $2,561 unit July to $2,507 in August, while units in non-doorman buildings saw rents go from $2,115 to $2,100. For one-bedroom units in doorman buildings, the rent went from $3,692 to $3,638 over the month, though non-doorman properties saw a $5 uptick to $2,765 in August. And rents for two-bedroom units in doorman buildings dropped from $5,560 to $5,542, and their non-doorman counterparts saw rents decline from $3,896 in July to $3,844 in August.

Further, August 2008 prices were all lower than the rates landlords were getting 12 months earlier. The largest declines were seen in non-doorman two-bedroom units and doorman studios, by 5% and 4.8%, respectively. Rents for studio units in doorman buildings were also down 2.1% over the year.

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