Manhattan Rents Down in October

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Manhattan's Rental Market declined this month beyond expected seasonal trends. Year-over-year analysis shows that rents have significantly declined across the board, with few exceptions.

The Real Estate Group

Doorman studios are down 7.23% and doorman one-bedrooms have declined 3.21% in year-over-year comparisons. To us, this seems to be a clear indicator of downward forces beyond simple seasonality trends.

The Real Estate Group's October monthly Manhattan Rental Market Report, released today, indicates that the Manhattan Rental Market has fallen beyond the expected fourth quarter slump. Rentals across all categories were down compared to September prices, with the exception of non-doorman two-bedrooms which remained flat, exhibiting typical fourth quarter trends, but year-over-year comparison also showed a significant decline, by as much as 7.23% for doorman studios.

"It's apparent that the rental market is struggling this month," says Daniel Baum, COO of The Real Estate Group. "Doorman studios are down 7.23% and doorman one-bedrooms have declined 3.21% in year-over-year comparisons. To us, this seems to be a clear indicator of downward forces beyond simple seasonality trends."

"Even with prices falling, inventories have increased, especially in doorman buildings, as many failed condo sales have entered the market as rentals. It seems that landlords will have to do even more to lure renters into vacancies as the fourth quarter rolls on."

Other notable trends include the sustained decline in rents on doorman units across the city. Gramercy Park studios fell 7.39% this month, while Lower East Side doorman one-bedrooms saw a decline of 9.77% and Harlem doorman two-bedrooms decreased by 5.07%.

The Real Estate Group's Manhattan Rental Market Report derives its data from over 10,000 available apartment listings in four major real estate databases. It is the only report that compares changes in the city's rental prices on a month-to-month basis. The report categorizes apartments by neighborhood, service level (doorman vs. non-doorman) and size, omitting ultra-luxury property to obtain a true monthly average.

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Cassandra Stoklosa
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