More vacant apartments, more discounts from landlords and less people moving to the area has stopped rent growth in Manhattan, a StreetEasy report said. For some specialists, rent cost in the area was overpriced in past years and it´s just logic it must slow down at some point.
Some examples reflects the slow down: rent in May 2016 was $3,280 in Manhattan, much higher than the the average rents during same month in 2015.
Manhattan rents rose 2.3% year-over-year, far less from the 6.1% growth between May 2014 and May 2015, report said.
Factors contributing to the slow-down are include rentals staying on the market for longer than they had in the past. Landlords lowering rents to catch tenants, according with an expert from the apartments finder tool StreetEasy.
Some concessions — even a free or 2 free months of rent — from landlords also fed the trend.
StreetEasy economist Krishna Rao said that; “New York renters have grown accustomed to arriving at open houses with their checkbooks in hand, for fear of losing out on a property,” “Now, in the face of record-high prices, renters are pausing to weigh their options, easing urgency for summer shoppers in both boroughs.”