Manhattan Rents Falling, and Fast

The seemingly irreversible slide in Manhattan rents continued into January, according to a report (PDF) released today by Citi Habitats. Rents flopped almost across the board from December, with the exception of two-bedroom apartments, which saw an insignificant $4 increase on average.

The year-over-year decline in average rents is much more pronounced, with rents falling dramatically: three-bedroom rents, now at $4,597, fell $121; two-bedroom rents, now at $3,534, fell $200; one-bedroom rents, now at $2,449, fell $116; and studio rents, now at $1,775, fell $92.

The all-important vacancy rate, sitting at 2.24 percent, remains unchanged month-over-month. Still, it is up substantially from January 2008, when it was at 1.34 percent. The vacancy rate has now been above 2 percent for three consecutive months after spending most of 2008 below 1.5 percent.

The annual drop in rents and concurrent rise in vacancy help define what a dismal year it has been for city landlords, who are struggling to attract tenants at the higher price levels they were able to charge last year.