Back HomeFirst Quarter Overview
The first quarter of 2016 demonstrated the result that comes from tension in the markets. As Manhattan rents and vacancies had hit a high, landlords needed to act accordingly to compensate for that loss.
The CitiHabitats quarterly report states that “average rents for all apartment sizes were relatively unchanged, while the borough’s vacancy rate declined, reflecting an uptick in demand for rental housing” (1). The demand for housing increased when Manhattan property Mangers and Landlords began giving concessions for those who rented and people who signed the lease on the building.
These incentives could come in the form of free utilities or a free month’s rent. “Other goodies can include free use of the gym for a limited time, iPads and gift cards for brokers” (2). Many landlords were setting the president to make their properties more attractive, given the rise in Manhattan rentals over the past few years.
In order to “be competitive” with outer boroughs, the concessions provide a way for Manhattan landlords to still be an option to those looking in Brooklyn and Queens. Josh Barbanel of the Wall Street Journal writes, “The rise in concessions followed a bump in the vacancy rate last fall. Together, the two factors suggest a further weakening of the Manhattan market” (2).
(1) CitiHabitats Quarterly Report
(2) WSJ
