Year-End Report: Manhattan Rental Market Resilient, though Not Invincible in '07

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The Real Estate Group Releases 12-month Round-up of Rental Prices and Trends in the Big Apple for 2007.

On the other hand, significant rental declines in some areas of the city and all-around softening prices in the fourth quarter of '07 may be foreshadowing declines in '08.

The Real Estate Group New York (TREGNY) released today their first Year-End Manhattan Rental Market Round-up. The study, which synthesizes data from all of TREGNY's 2007 monthly Market Reports, evaluates the state of the Manhattan rental market based on its performance throughout the year. Intended as a guide for renters, owners and developers alike, TREGNY's Year-End Report examines notable trends, average asking rents and price changes that occurred from January through December to provide insight on the health of the city's rental market across different neighborhoods, apartment sizes and service levels.

According to the report, the Manhattan rental market remained relatively strong throughout 2007, despite the ongoing credit crunch and housing fallout. Citywide price gains across most categories averaged between 2.2% and 6.5%, with the exception of non-doorman two-bedroom buildings, whose rents climbed by an impressive 14.1% since this time last year. Individual Manhattan neighborhoods, however, experienced more dramatic gains--and in some cases--losses.

"The citywide numbers we're seeing do indicate healthy growth, which suggests that Manhattan real estate has so far managed to weather the nervous conditions of a weakening U.S. housing market," says Daniel Baum, co-founder and COO of The Real Estate Group. "On the other hand, significant rental declines in some areas of the city and all-around softening prices in the fourth quarter of '07 may be foreshadowing declines in '08."

A comprehensive update on year-end price changes in Manhattan neighborhoods can be found in the Neighborhood Price Trends section on pages 9-11 of the Year-End Manhattan Rental Market Report. Link to the Year-End Manhattan Rental Market Report in PDF: http://www.tregny.com/pdf/year_end_report_2007.pdf

Numbers in The Real Estate Group's Year-End Manhattan Rental Market Report were calculated using data from the company's twelve 2007 monthly Manhattan Rental Market Reports. TREGNY's month-to-month Manhattan Rental Market Reports are specifically compiled to track the price path of average asking rents throughout Manhattan's 14 neighborhoods below 100th Street, omitting ultra-luxury property to obtain a true monthly average. The data is sorted by service level (doorman vs. non-doorman), neighborhood and number of bedrooms. The Manhattan Rental Market Report is based on data cross-sectioned from over 10,000 currently available listings aggregated from the TREGNY proprietary database and sampled from a specific mid-month point to record current rental rates offered by landlords that month. It is then combined with information from the REBNY Real Estate Listings Source (RLS), On Line Residential (OLR.com) and R.O.L.E.X. (Real Plus).

Access all archived issues of the Manhattan Rental Market Report at http://www.tregny.com/content/rental_market_reports/.

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