Manhattan Apartments: Free Rent But Still Not Cheap

Posted by: Chris Palmeri on September 25, 2009

manhattan apt.jpg

The analysts at the investment firm Sandler O’Neil recently did a tour of the Manhattan apartment market with some of the biggest publicly-traded management companies including Avalon Bay and Equity Residential.

The news is that rents are off approximately 15%, much as in other parts of the country. The vancancy rate is up to 6%. In the past, Manhattan apartment buildings were almost always fully leased.

New tenants are demanding at least one month free rent. In some cases landlords are also paying the real estate agent’s fee—typically a month and a half’s rent. Tenants in New York used to get stuck paying that in the past.

The concessions are keeping traffic high, Sandler O’Neil says, as some chronic “deal shoppers” look for the best rent. The lower rents have also attracted some tenants from the Boroughs and New Jersey to move to Manhattan. Some tenants have traded down to smaller units or taken on a roommate to reduce their expenses.

Keep in mind we’re still talking about expensive apartments. A 1 bedroom that rented last year for $4,400 is only down to $3,700 now.

Reader Comments

kandice nielsen

September 25, 2009 11:04 AM

i really like this article:_))-

Andrea

September 25, 2009 2:48 PM

Who the hell wants to live in this trashy and ugly city filled with unemployed and desperate people. Go and see the world it is time for Manhattan junkies to leave the city and see the beautiful world filled with love and life and not only with criminals called bankers.

I wouldn't even stay there if I would get paid for it.

Justin Samuels

September 26, 2009 12:24 PM

It depends on what part of Manhattan. I've personally known people to rent two bedroom apartments in recent days in Manhattan for under $2000 a month.

Strategery

September 27, 2009 1:54 AM

A real estate agent to rent an apartment? Why?

Juan

September 27, 2009 6:51 AM

You could start advertsing here: www.holidaysbyowner.com . It worked for me!

KLA

September 27, 2009 5:28 PM

wow...I don't know anything about Manhattan but I wasn't not expecting those kind of prices. By the picture I was thinking like $400 a month. hahaha And here I was complaining about a $2000 house payment. At least I get a 4 bedroom with 2-car garage, but I understand it's all about the area. So each to their own.

REINA G FIALLOS

September 28, 2009 1:23 PM

I AM LOOKING A TWO BEDROOM APARTMENT.ANY WHERE IN MANHATTAN.

steven

September 30, 2009 1:36 PM

Rent 750 mth, 210 wk, 36 day
Rebate 25 off first rent payment
Security deposit None
Category Room for Rent
Listed by Owner

Berlin
Mitte-
Available 9/29/09 (flexible) to Open
Renew lease Yes
Rental type Apartment
Bedrooms One, Available 1
Bathrooms 1

Location : Brunnenstr./Rosenthaler Pla Map Brunnenstr 10117 Germany

1450mth 600wk 95d


Listing Summary: 750 per month furnished room for rent in 1 bedroom 1 bath Apartment for rent in Kreuzberg, Friedrichshain-Kreuzberg, Berlin, Fuerbringer Strasse, W Zossener Strasse posted by Owner.

Guestroom in "art noveau" (old builidng) with an extensive living-room with a confortable bed (160x205).Fully equipped kitchen with electric stove, fridge, dishes from wine glass to frying pan, cutlery, coffee machine, microwave, toaster serves the fast breakfast as well as an extended and delightful dinner. Bathroom with shower, enough storage place. Towels and bed-clothes are incl.

The building is only few mintues away from city east or west. From here you can catch all cultural events, re Contact for more details

Paul

October 26, 2009 7:42 PM

PostGrad Apartments

December 21, 2009 10:38 AM

Rents are definitely down in Manhattan and it's worth trying to find a good deal. Buildings are throwing in crazy perks like free cable/internet and free gym memberships. If you're thinking about moving, now is definitely the time!

http://www.postgradapartments.com

melike erhun

January 11, 2010 2:49 PM

hello, i live in sweden & i'm going to move to new york , but i am still looking for an apartment. And i am looking for something cheap not expensive , can someone help me with that ?

riktigamelikke

January 18, 2010 3:16 PM

d där va nt ja som skrev ?
asso vem skriver sånt i mitt namn.. ? ; s

andre

February 18, 2010 3:28 PM

If there is anybody looking for a apartment in the city give me a call 862-596-9301. Ill find one for you in your budget range.

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About

BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.

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