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Manhattan apartment move-in incentives increase along with vacancies, reports say

Manhattan move-in incentives for apartment hunters has increased

Manhattan move-in incentives for apartment hunters has increased due to a large number of vacancies in the borough, according to two reports released on Dec. 8, 2016. Photo Credit: Linda Rosier

Manhattan apartment hunters are getting extra stocking stuffers this winter.

A large number of vacancies in the borough is forcing more landlords to offer move-in incentives, such as a free month’s rent or no broker’s fee, according to two real estate reports released Thursday.

Douglas Elliman said 25.1 percent of its rental transactions had concessions last month, which was 12 percent more than in November 2015. Citi Habitats said 27 percent of its deals in November also offered bonuses, which was more than double the amount offered during the same time in 2015.

Citi Habitats president Gary Malin said there is a disconnect with the amount that owners think their tenants can pay for rent and what renters actually can afford.

“Many people are simply at their breaking point. Building owners continue to lean on concessions to drive traffic, but these incentives have yet to lower the vacancy rate as anticipated,” he said in a statement.

The vacancy rates for Manhattan continue to drive the trend. Elliman said the rate was 2.53 percent in November, with 1,442 more rental listings than during the same period last year. Citi Habitats said the vacancy rate for their listings was 2.11 percent, a .09 percent jump from the same period last year.

Malin said the bonuses would be crucial for the borough’s market as rents continue to increase.

The average Manhattan apartment rented for $3,490 last month, according to Citi Habitats, which was $26 more than in November 2015. Elliman said average rents were $4,095 in November, $24 more than in the same period last year.


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