In the last two years, cost for rentals in Manhattan has slightly dropped, according to Elliman market reports. The report revealed that the average rent for the area decreased by 1 percent from February and 3 percent compared from the same time last year.
It was also reported that the median rent dropped about 2 percent from February and nearly 3 percent from the same time last year. According to Jonathan Miller who prepares the Elliman market reports, the rate of growth of rents in the area has been falling since August.
According to New York Curbed, these findings were backed up by the Citi Habitats report which state that the average rents in March 2016 remained unchanged since February. However, the report also notes that every year, the rents for one-bedroom apartments increased the most with a 4.5 percent hike, while the rents for studio units rose 2.6 percent. The prices of two- and three-bedroom apartments also rose to 2.1 and 2.4 percent, respectively.
Many real estate groups also found that a number of landlords that are offering concessions in Manhattan have also risen. Fewer people are also leaving their apartments because landlords are offering more perks like one month free rent. This is also one of the main reasons why vacancy has dropped in the past few months.
Miller said that people should not get excited about this because he believes that this trend will not continue for long, considering the area is sitting in a robust local economy. He predicted that it may move sideways for a little while, but it will definitely show stability at some point. The rent growth also remains to be the strongest in the lower half of the market and the softest at the top. This means that apartments are normally affordable and are not getting any cheaper.