While median rental prices climbed for the 21st consecutive month, the vacancy rate is the highest it's been in nine years, which means landlords are being forced to offer tenants more concessions on rentals, explains data whiz Jonathan Miller, the author of the Elliman Report.
Miller doesn’t expect to see big rent drops anytime soon since there is still a lot of “pressure” on the rental market — there’s a “robust” economy as well as tight credit and the potential of rising mortgage rates, which prevent some renters from becoming buyers.
But affordability continues to be a big issue, Miller said.
According to Gary Malin, president of Citi Habitats, Manhattan’s vacancy rates were highest in the East Village (3.2 percent), followed by the West Village (2.6 percent).
“The fact that vacancy rates are the highest in the East and West Villages is strong evidence that for apartment seekers, paying high prices for small spaces no longer adds up,” Malin said.
Malin said the “party’s over” for landlords, as inventory has been “trending upward for the past six months,” giving renters more options.