Manhattan Rents Decline 6-9% Year-Over-Year

Weakness in the job market continued to put pressure on apartment rents in Manhattan, driving them down 6 (3 bedroom)-9% (studio) year-over-year.

Manhattan apartment rents fell as much as 9 percent in October from a year earlier as unemployment cut demand and landlords lowered rates, according to Citi- Habitats Inc.

Average rents dropped for all apartment sizes and the vacancy rate rose 0.15 percentage point to 1.86 percent, the highest since November 2008, the New York-based property broker said today in a report.

“As soon as the economy shifted and people got laid off and got no bonuses, landlords had no choice but to reduce asking prices,” Gary Malin, president of Citi-Habitats, said in an interview. “We expect rents to decrease in the next few months and vacancy rates to creep upward.”

[via Bloomberg]

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