Manhattan Vacancy Rate At Five-Year Low
NEW YORK — If you think rental apartments are becoming scarce and more expensive, you’re right.
Nationwide, apartment vacancies dropped to a 5-year low last quarter to 5.6 percent, according to research firm Reis.
In Manhattan, it’s less than 1 percent.
Research also showed a corresponding rise in effective rents, or what tenants pay after landlord concessions are included, year over year in 81 out of the 82 metropolitan areas.
Bloomberg reported: “San Jose, California, led with 5.5 percent growth in effective rents from a year earlier, followed by San Francisco at 4.5 percent and New York at 3.7 percent, Reis said. Only Las Vegas experienced a decline in rents.”
Of course, that figure represents all five boroughs: Manhattan, Brooklyn, Queens, Staten Island and the Bronx.
Forecasts of record-high rents earlier this year have largely been realized.
“There’s also concern more consumers will take on roommates to cut costs, something last seen following the financial crisis. Should that increase the vacancy rate, landlords could be forced to bring back profit-eroding freebies such as a month or two of free rent,” wrote The Wall Street Journal.
Those “freebies” include no-fee apartments, which means the landlord pays the 15 percent broker’s fee.
Such concessions are becoming increasingly rare since apartment vacancy rates hit a 22-year high — back in July 2009.