Rental Market Update: Landlords Happy
A: By popular demand, here is a snapshot of the New York City rental market data as of March 2007 compared to the previous month. As you will see, rental vacancy dropped significantly since February in every neighborhood with the exception of SoHo/Tribeca & UES. Heading into the summer months, expect this trend to continue as we approach the most active move-in date of September 1st, for rentals. Those considering renting out their units might want to take advantage of the tighter rental market. Those unsure whether they should rent or buy will have to monitor these trends closely to see how it might affect their decision; especially if your lease expires in the near future!
OVERALL VACANCY RATE MARCH 2007 --> 1.09% (-19% month-to-month)
OVERALL VACANCY RATE FEBRUARY 2007 --> 1.34%
Here are the charts showing rental data (Vacancy Rates / Average Rents By Neighborhood) collected by Citi-Habitats
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Conclusions: Landlords should be happy reading these reports. Vacancy rates for the most part dropped in most areas of Manhattan while average rental prices trickled higher by apartment size. Both datasets show strength in the New York City rental market and there is no reason I can think of to make this trend reverse course as we get closer to September 1st, the most popular move in date in Manhattan. Expect vacancy rates to remain where they are or trickle lower and rents to trickle higher until supply trends reverse course. Those renewing leases during the summer should expect slight to moderate rate hikes to reflect market changes; especially if the previous lease term was 2+ years.
For those considering buying, this data combined with a general summer slowdown in the sales market might make for an easier buy decision in the near future; if its economically feasible to buy and timeline to own/hold exceeds 3-4 years at the minimum.
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