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Manhattan Apartment Rents Tumble Some More

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By Oliver Haydock

October 1, 2008 | 11:25 a.m.

Daniel Baum.

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Manhattan apartment rents stayed flat in September, on par with average rents in the summer and substantially lower than those from early autumn 2007. Rents are down by around $200 across the board since September 2007, in fact, for both doorman and non-doorman buildings, according to a new report from The Real Estate Group New York (PDF). (The report analyzes rents south of Washington Heights.)

The average rent for a doorman one-bedroom, for instance, dropped from $3,881 in September 2007 to $3,692 in July, and then dropped further through September. For two-bedrooms in doorman buildings, the September average was $5,529, down from the summer and down from the same month last year.

The report's analysis alludes to the effects the financial crisis could have on the Manhattan apartment market. According to Daniel Baum, TREGNY's chief operating officer and the report's author:

As Congress debates a credit market fix, Manhattan property owners have created their own “rental market fix.” Making a concerted effort to lower vacancies and prices, inventories have fallen for the second consecutive month. This much needed correction is giving Manhattan a fresh breath of stability, which is good news for both renters and property owners alike.

Even with this good news however, I would caution property owners to remain conservative with asking rents. As we move into the fourth quarter, which historically has been the slowest time for the rental market, property owners should proceed with caution to avoid sending inventory levels rising again.

Translation: Now may be the best time in a long time to apartment hunt in Manhattan.