August rents dropped as much as 10% in a year

The residential rental market has continued its lackluster trend, according to the Manhattan monthly market report for August from the Real Estate Group.  While summer is typically a booming rental season, this year’s hottest months didn’t do much to help landlords.

Rents were once again nearly flat again, with the largest changes in non–doorman two–bedroom units, which fell 1.75%.

Year–over–year reports continue to be bleak for landlords: Rents were down by as much as 10.02% in doorman one–bedroom units, though non–doorman and doorman vacancies fell. It was the largest overall month–to–month decrease in inventories since September of 2008 (3.45%) and the fifth straight month of declines for doorman units. Doorman units decreased 4.39%, while non–doorman units, which have seen mixed results this year, slipped 2.36%.

“This month has been a bit of a power struggle between renters seeking value and property managers trying to capitalize on summer demand,” the report says. “The summer peak has been considerably muted this year.”

A recent Manhattan rental report from Prudential Douglas Elliman showed that rental transactions were down nearly 60 percent for the second quarter of 2009, the Real Deal noted.

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Malcolm Carter
Licensed Associate Real Estate Broker
Senior Vice President
Charles Rutenberg Realty
127 E. 56th Street
New York, NY 10022

M: 347-886-0248
F: 347-438-3201

Malcolm@ServiceYouCanTrust.com
http://www.ServiceYouCanTrust.com

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