Trick or Treat: The Manhattan Rental Market Summary

Manhattan Rental Market Summary:


THE BIG PICTURE: GOOD NEWS FOR LANDLORDS
75% of Manhattan real estate consists of rental properties. A loss of several thousands of rental apartments over the past few years (mostly due to conversions to condos) has generated a demand that sends prices soaring. Growth in the employment sector has also contributed significantly to rising rental prices.

Monthly rents have increased amongst all size categories. Last year, average monthly rents for studio apartments jumped 4.8% to $1, 4. 978. Prices rose 4.4% for one-bedrooms, 5.6% for two-bedrooms, and .7% for three-bedrooms. Vacancies are low: .86%.

Average monthly rent for a Manhattan...
studio: $1,965
1 bedroom: $ $2,597
2 bedroom: $3,724
3 bedroom: $4,753

A WINDOW OF OPPORTUNITY FOR RENTERS
It's Halloween season, and sometimes freaks of nature do occur. Luckily for you, the freak of nature is a decline in Manhattan rents. No, it's not a trick. Treats are on the landlord this season!

Here's some helpful info that I took from the New York Real Estate Group report:

Where Prices Decreased:

Upper West Side – This month, the Upper West Side replaced Midtown West as most affordable neighborhood for these units.

Upper East Side – Rents in all apartment sizes declined this month, with the exception of service studios, which posted a nominal increase.

Midtown - If you prefer to live in this bustling area, you’re in luck. Two-bedrooms in Midtown East fell by about $300 this month. Midtown West also saw significant price declines in most unit categories.

Gramercy Park - The doorman sector as a whole is suffering in this neighborhood, as rental prices decreased by hundreds of dollars in all apartment types. Tenants who were priced out of the neighborhood earlier this summer seem to have turned to non-doorman one and two-bedrooms and forgone luxury to remain in the neighborhood.

Greenwich Village - Although there is still demand for studios, all other apartment types here decreased in rent in October. Most noticeably, service 2-bedrooms fell by about $300.

East Village - Doorman two-bedroom rents finally dropped this month, after a steady climb since the end of the 2nd Quarter, thus signaling that even some of the strongest neighborhoods are seeing a reduction in demand at the start of the 4th Quarter.

SoHo -Two bedrooms are losing their appeal, as non-doorman two-bedroom apartment rents are maintaining their decline since January. In the doorman category, two-bedrooms continued their slide since May after briefly leveling off last month.

Lower East Side - Not surprisingly, this area continues to be the best value for doorman apartments regardless of size. Landlords cut rental rates for all properties this October even in this affordable neighborhood.

Tribeca - Landlords were forced to reduce rents in almost all units after pricing them excessively high last month. The exception are Tribeca’s non-doorman studio rents, which remained virtually the same.

Where Prices Increased

Murray Hill - A sure sign that Murray Hill continues to attract more of the young affluent crowd is the fact that regardless of service level, studios and one bedrooms are continuing to fare well.

Chelsea - One-bedroom apartments increased by about $150 in October, continuing its fluctuation only slightly from month to month. Chelsea seems to be the most realistically priced neighborhood, as this trend exhibits.

Financial District - Down below Chambers Street, new luxury developments in the Financial District keep doorman rent rolls up, rivaling prices in its sister neighboring Battery Park City. Deals can now be found in the studio and one bedroom non-doorman sector.

Battery Park City – Rental prices remained relatively stable in October, exhibiting only slight changes each month, as is typical of the neighborhood.


*information was also taken from the 3rd quarter report, 2007, CitiHabitats,

Real Estate By The Numbers

Apartment shopping, decorating, throwing a house-warming party...these are the fun things that come to mind when I think "real estate." Unfortunately, it's also essential to do some tedious number crunching in order to figure out if one can afford such fun. Luckily, there is a whole slew of pre-programmed calculators on Yahoo Finance that do all the work for you. Three cheers to the math nerd who programmed these:

Yahoo Finance Real Estate Calculator

Should I rent or buy a home?
Should I refinance my home mortgage (break even)?
How much home can I afford?
Comprehensive mortgage calculator
Compare a "no-cost" versus traditional mortgage
Should I pay extra points for a lower rate?
Compare mortgage terms (i.e. 15yr, 20yr, 30yr)
What are the tax savings generated by my mortgage?
Value of reducing or foregoing expenses
Should I consolidate my personal debt?
What is the return on my real estate investment?
How much am I spending?
How much should I save to reach my goal?
What will my loan payments be?

WHAT'S SMALL, UGLY, INSANELY POPULAR, AND $250,000?

Your very own, tiny parking spot, no amenities included. But good luck getting one-- people are actually lined up to purchase these little hot cakes. 246 West 17th street, which isn't even built yet, has a handful of lots for $225k each and there is already a long waiting list. A complex on West 28th street sold out its $165k spots in a jiffy, and even people in Boston are paying $250k per space (snow shoveling not included). Just in case this isn't in your budget, here's a link to a great bike shop. Remember to wear your helmet though-- there are a lot of angry drivers out there who can't find a parking spot.

Planning to Jump Off Your Fabulous New York Penthouse Balcony? WAIT!! Read This First

If I had a penthouse at the top of a NY skyscraper, I would absolutely consider gliding/parachuting/jumping off (with a big trampoline to catch me, off course). I've seen this done on the Letterman show, and it looks like good fun. There's a reason that they say "don't try this at home" though-- and it has nothing to do with your safety. So, ATTENTION ALL PENTHOUSE OWNERS and FRIENDS OF PENTHOUSE OWNERS WHO MIGHT LET YOU JUMP OFF THEIR BALCONY: JUMPING OFF A BUILDING IN NEW YORK IS PUNISHABLE BY DEATH.

According the dumblaws.com, anyway. Of course, if you plan to jump off to commit suicide, all your bases are covered. Even if, by some unlikely miracle, you bounce off the doorman's shoulder on your way down and manage to survive-- don't fret. The State of New York (or the doorman, if he's still alive) will kill you.

*Note: The jumper in the photo is stuntman Dar Robinson-- he's jumping from the CN building in Toronto.

Is Yours A Haunted House?

New York is known for its sketchy characters and it's rough, edgy history. Have your ever wondered if your million dollar one-bedroom apartment in the village used to be a crack den, murder site, brothel, or speak easy? Thankfully, walls can't talk, but there is a great blog that spills the beans on infamous New York real estate. Maybe your apartment is listed....or maybe it should be. Happy Halloween season!

Don't Like Your Kids? Donate Before You Die

Perhaps you don't particularly like your offspring, and you would rather get a tax break than turn your real estate over to them in your will. Or maybe your kids have run off to be hedonists in Thailand and they want nothing to do with your unsellable estate in Montana, which they will have to pay the taxes on. No problem-- donate your real estate, land, or even time share to a good cause. Get a tax break, and call it a day. There are several organizations that will help give away your assets. Here's a good place to start: http://www.realestatewithcauses.org/

Open House NYC

If you think that the realms of brick and mortar are as dead and dull as door nails, Open House New York will change your mind. It's not to be missed. There will be over 350 sites open and free to the public, and most of them are truly unique, if not downright crazy. Here are my top picks:

For Friday night, I recommend packing a flask of whiskey and heading to Roosevelt Island at 3am to see 120 spookily illuminated white tents. Each tent has an installation and is open from 7pm-7am. Here's a description from the website:

It proposes an archaeological dig as its metaphor; the search for artifacts is replaced by the search for a collective memory of Roosevelt Island. Sokoloski (the designer) told Metro that Roosevelt Island's past, filled with hospitals, lunatic asylum and other facilities, inspired him, "When you go deep the history is so fascinating. This will be a kind of digital archaeology, a model of exchange where the community will uncover the stories of the island’s past.” He also calls it "a metaphorical, archaeological dig into the history of mental health."

If you're still on Roosevelt Island between noon and 5pm, head to Octagon & Lighthouse Park, at 888 Main St/ 12th Road. As noted on their website, "America’s first municipal lunatic asylum was restored and converted into sustainably designed apartments equipped with NYC’s largest array of solar panels. The site features an art gallery, ecological park and green building exhibit, including information on Verdant Power’s Tidal Energy Project for the East River. "

To top it all off, I'll be heading home to hear Angels & Accordions at the cemetery in Sunset Park, Brooklyn. This week-end officially starts the ghastly, spirited Halloween festivities.

For those of you who don't appreciate my suggested lunatic/cemetery itinerary (perhaps you feel that you have enough contacts with the lunatics on the subway), there are plenty of other things to see. There's a long list of wholesome, green buildings that you can tour, for example. Check out the website for a complete line-up of events.