A report on the Manhattan rental apartment market for the Fourth Quarter 2009 by Miller Samuel Inc. for Prudential Douglas Elliman Real estate found that the average rental price per square foot was $47.02 compared to $49.30 for the prior year quarter, a 4.6 percent decline.
It said that the number of rentals in the same period increased from 2.456 from 1,665. a 47.5 percent increase and that the listing inventory declined to 5,225 from 6,640, a 21.3 percent decline.
The Miller Samuel study found that the average rental of studios decline 1.8 percent over the year to $2.253. the average rental of one-bedroom units declined 6.8 percent to $3,026, the average rent of two-bedroom units declined 0.6 percent to $5,228, the average rent of three bedroom units declined 19.9 percent to $7,515 and the average rent of four-bedroom units declined 32.3 percent to $12,749.
Geographically, the report noted that downtown average rents declined 5.7 percent over the year to $3,737 while on the East Side the decline over the year was 7.8 percent to $3,774. On the West Side, however, the study found that the average rent increased 4.5 percent to $4,153 but the uptown average rent declined 15.1 percent to $1,860.
The Miller Samuel report found that the average rent for doorman building declined 2.3 percent over the year to $4,198 while the average rent for non-doorman buildings declined 6.4 percent over the year to $3,091. Luxury apartments held fairly steady over the year at minus 1.5 percent, or $10,239 while loft units declined 6.5 percent to $6,608.
A separate report by Citi Habitants was also issued today with slightly different figures. It found that its firm was involved with 12,900 rental apartment transactions in 2009, a 23 percent increase over 2008. According to the company's president, Gary Malin, "prices on average are approximately 7 percent lower than in 2008 and this adjustment does not include landlord incentives such as free rent, which, when factored in, would make price reductions greater." He said that the Manhattan rental market "had found its footing in terms of pricing" and that "vacancy rates which historically increase during this period actually decreased slightly over November's rate, indicating positive absorption in the market."
The report indicated that in the Fourth Quarter the highest average rent for studio, one-, two- and three-bedroom units were in the SoHo/TriBeCa area, $2,130, $3,145, 5,042 and $6,898, respectively, In the same quarter, the report said that average rents in new developments with doormen for studios, one-bedrooms, two-bedrooms and three bedrooms were $2,434, $3,573, $5,972 and $8,396 while in older doorman buildings those figures were $2,144, $3,054, $4,402 and $5,659 and in walk-ups the figures were $1,602, $2,041, $2,686 and $3,910.
The discrepancies between the two reports reflect the fact that each company deals with slightly different markets and that residential leases are not publicly recorded.
It said that the number of rentals in the same period increased from 2.456 from 1,665. a 47.5 percent increase and that the listing inventory declined to 5,225 from 6,640, a 21.3 percent decline.
The Miller Samuel study found that the average rental of studios decline 1.8 percent over the year to $2.253. the average rental of one-bedroom units declined 6.8 percent to $3,026, the average rent of two-bedroom units declined 0.6 percent to $5,228, the average rent of three bedroom units declined 19.9 percent to $7,515 and the average rent of four-bedroom units declined 32.3 percent to $12,749.
Geographically, the report noted that downtown average rents declined 5.7 percent over the year to $3,737 while on the East Side the decline over the year was 7.8 percent to $3,774. On the West Side, however, the study found that the average rent increased 4.5 percent to $4,153 but the uptown average rent declined 15.1 percent to $1,860.
The Miller Samuel report found that the average rent for doorman building declined 2.3 percent over the year to $4,198 while the average rent for non-doorman buildings declined 6.4 percent over the year to $3,091. Luxury apartments held fairly steady over the year at minus 1.5 percent, or $10,239 while loft units declined 6.5 percent to $6,608.
A separate report by Citi Habitants was also issued today with slightly different figures. It found that its firm was involved with 12,900 rental apartment transactions in 2009, a 23 percent increase over 2008. According to the company's president, Gary Malin, "prices on average are approximately 7 percent lower than in 2008 and this adjustment does not include landlord incentives such as free rent, which, when factored in, would make price reductions greater." He said that the Manhattan rental market "had found its footing in terms of pricing" and that "vacancy rates which historically increase during this period actually decreased slightly over November's rate, indicating positive absorption in the market."
The report indicated that in the Fourth Quarter the highest average rent for studio, one-, two- and three-bedroom units were in the SoHo/TriBeCa area, $2,130, $3,145, 5,042 and $6,898, respectively, In the same quarter, the report said that average rents in new developments with doormen for studios, one-bedrooms, two-bedrooms and three bedrooms were $2,434, $3,573, $5,972 and $8,396 while in older doorman buildings those figures were $2,144, $3,054, $4,402 and $5,659 and in walk-ups the figures were $1,602, $2,041, $2,686 and $3,910.
The discrepancies between the two reports reflect the fact that each company deals with slightly different markets and that residential leases are not publicly recorded.
Architecture Critic
Carter Horsley
Since 1997, Carter B. Horsley has been the editorial director of CityRealty. He began his journalistic career at The New York Times in 1961 where he spent 26 years as a reporter specializing in real estate & architectural news. In 1987, he became the architecture critic and real estate editor of The New York Post.
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