Manhattan rents dip for the fifth month in a row: Report
Manhattan rents may have decreased over the last five months, but the honeymoon for apartment seekers probably won't last forever.
A report released Wednesday by real estate group Citi Habitats found that the average rent for an apartment in the borough fell by $23 from December to last month to $3,211.
Gary Malin, Citi Habitats' president, said although the decrease has been good for home hunters, rents are still historically high for this time of the year.
"You won't see a huge drop in rents. You'll see incremental drops in rent. There's not a lot of production coming in the rental front," he said.
Malin credited the seasonal real estate trend as a major factor in the rent dip and also noted Manhattan's 1.37% vacancy rate was a factor as well. The rate was unchanged from December but it was 7% higher than the same time last year.
Some of the neighborhoods that had the lowest vacancy rates include SoHo, which had a 0.76% rate and Gramercy which had a 1.04% rate, according to the report.
Malin said there aren't too many new apartments popping up in Manhattan and even though the economy is getting better, home hunters are being careful with their cash.
"Some people may not be able to afford an apartment yet so they're waiting," Malin said.
Despite the urge to wait, Malin warned that low inventory will make it difficult in the spring when rents are expected to increase, said Malin. He did note that there are some key places to get a good deal, including the Upper East Side close to the East River.
He added that renters also shouldn't side away from checking out homes in the outer boroughs.
"People are starting to realize, outside of Manhattan there are better deals as well," Malin said.