We All Pay the Same Manhattan Rents Now
Jim Hanas July 8, 2011, 11:19 a.m.
As it turns out, we’re all screwed (except uptown)—the latest second-quarter data from Douglas Elliman and Miller Samuel shows there isn’t much discrepancy between rents on the East Side, West Side and downtown in Manhattan. And the net rates just keep on rising.
The average monthly rents currently are as follows: $3,511 on the East Side, $3,594 on the West Side, $3,598 downtown and $1,772 uptown. And what’s an extra $80 per month when you’re already shelling out thousands? Unless, of course, you take the thrifty route and pick a place in Inwood, Washington Heights or Harlem.
This neighborhood data, however, does not include landlord concessions, subleases or other strange deals (you know the ones—five people in a three-bedroom, the guy who rents a mattress in the converted closet, and then disappears into the ether come winter). The average rent for a Manhattan apartment (without concessions) seems to have dropped compared to last year, but the net cost of rent is actually rising. Taking concessions into consideration, the average price of a Manhattan apartment overall rose 3.5 percent compared to the same quarter last year, to $3,455 up from $3,342.
And landlords can afford to tighten their grip on potential renters because, despite increasing demand for Manhattan apartments (new rental activity expanded 51.5 percent this year), the market saw an 11 percent drop in the number of rental listings available.
All of that means it’s going to be harder to find an apartment in a decent location, and by the time you ink a deal with a landlord the net cost will be probably be higher because of a lack of concessions. Welcome to Manhattan! The economic recovery comes with a price, especially in real estate.