New York City's rental market remained tight in the third quarter. Figures analyzed by Miller Samuel Real Estate Appraisers found that rents rose when consessions, like free gym memberships or one month free rent, were taken into account.
The firm's president, Jonathan Miller, said 8.6 percent of new leases have a concession — and of those that do, the average concession was the equivalent of 1.2 months.
Miller said it’s still difficult to find a cheap apartment in the city. "Tight credit on the mortgage side is keeping people in the rental market. Mortgage lending standards have actually tightened since the beginning of the year according to the Federal Reserve,” said Miller. He also blamed uncertainty for the high rents. He said people are unwilling to buy when the stock market is so volatile. It means that renters won't have much wiggle room in negotiating prices for apartments.
The third quarter analysis did see some movement in the buyers market. High end of the rental market saw large price increases and that's caused some apartment dwellers to buy an apartment instead of renting a luxury apartment.
The report also found that the number of new rentals slipped to 7,998 units from 8,593 units in the prior year quarter. Also, listing inventory fell 1.9 percent to 4,605 units from 4,693 units in the prior year quarter.
The days a rental was on that market was 58 days. That’s up from 38 days this time last year.