Manhattan's Tight Rental Market To Get Tighter

With Manhattan rents skyrocketing and vacancies dropping, many renters are resorting to creative, and often questionable living arrangements. Builders have shied away from rentals and gone into condos while potential buyers are choosing to rent.

1 minute read

May 11, 2007, 8:00 AM PDT

By Irvin Dawid


"New York's rental market is the tightest it has been in seven years - the vacancy rate for Manhattan rentals is now estimated at 3.7 percent...It is expected to shrink to 3.3 percent by the end of this year and to 2.9 percent by 2011."

"While New York City has always had a vacancy rate lower than most other cities, rental prices jumped last year by a record 8.3 percent. Some potential buyers, scared by the national slowdown in housing sales, decided to rent instead of buy. The housing crunch has also been exacerbated by the steady growth of newcomers."

"The rents for one-bedroom apartments in Manhattan average $2,567 a month, and two-bedrooms average $3,854 a month, according to data from Citi Habitats, a large rental brokerage company, but rents tend to be far higher in coveted neighborhoods like the Upper West Side and TriBeCa."

"Because landlords typically require renters to earn 40 times their monthly rent in annual income, renters of those average apartments would need to earn at least $102,680, individually or combined, to qualify for a one-bedroom and $154,160 to afford a two-bedroom."

Thursday, May 10, 2007 in The New York Times

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