2009 February 01 Sunday
Manhattan Rental Prices Going Down

If you are very affluent Manhattan is becoming less unaffordable.

Although it is notoriously difficult to quantify the state of the rental market, rents fell in almost every sector of the Manhattan market last year, according to the Real Estate Group, a New York brokerage. The steepest drop was in one-bedrooms, down 5.7 percent in buildings with doormen and 6.53 percent in buildings without. The only category that rose: rents for two-bedroom apartments in doorman buildings, up just a bit, by 0.61 percent. But these numbers, like most available data, represent asking rents rather than the final price. Anecdotal evidence suggests that some people are negotiating rents as much as 20 percent lower than the original prices asked by landlords. These figures also leave out incentives, like a month of free rent or a landlordís paying the broker fee, which can add up to real savings.

Still not affordable for the vast bulk of the US population.

Ms. Hsiao, 23, and her roommate, David Liu, 24, settled on a two-bedroom two-bathroom apartment in Midtown on the West Side. It was listed for $4,200. They offered $3,650 a month and were accepted. After one month free and a $2,000 signing bonus, the total came to $3,215 monthly, and they did not have to pay the brokerís fee.

The article also mentions a 3 bedroom apartment in Midtown for $7,400. That amount of money would pay the monthly mortgage on a house for over $1 million borrowed.

Share |      By Randall Parker at 2009 February 01 10:58 PM  Economics Housing


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