Industry studies show that the average rent on Manhattan apartments has risen to a point close to pre-crash rates, according to the New York Post. Over the same period, vacancy rates dropped considerably as residents rented at near-record rates.
The average rent for Manhattan apartments was $3, 309 per month in 2011, up from $3, 046 in the previous year. Rates rose across the board, regardless of apartment type: studios and one-bedrooms saw an 8% increase in rent, while two and three-bedrooms saw a 9% increase in rent. At the same time, vacancies fell from 1.16% in 2010 to 0.96% in 2011.
This bucks the trend seen in the rental market since the average rent on Manhattan apartments hit its record in 2007 at $3,310 per month. After that, rent rates dropped consistently with each year.
Experts see the renting trend as a result of a tight mortgage market and an unstable economy. For residents uncomfortable with making a commitment to a mortgage, rentals seem like a safer option.
While rentals (where they can be found) may seem safer from a fluctuating buyer’s market in Manhattan, they aren’t immune from it: studies have also shown that landlords are less likely to make concessions like paying for the first month’s rent or paying broker fees.