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Rental Woes: Tribeca, LES, and Harlem Take Their Licks

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Another day, another report showing fast-dropping Manhattan rental prices. Sure enough, The Real Estate Group's January rental report shows prices falling month-over-month in all apartment sizes and in both doorman and non-doorman buildings. More intriguing, though, are the report's very particular slams of certain name-brand neighborhoods.

1) Lower East Side: "The Lower East Side is the quintessential example of what happens to a late-comer in a hot market. While developers rushed to ?nish their projects in the Spring of 2008, hipsters helped to in?ate prices on these units. But when the market cooled in the summer, the prices dropped even faster than they rose. Doorman one and two-bedroom units now sit only above Harlem as the second least expensive units in Manhattan—fantastic opportunities for bargain hunters and those looking to be the ?rst in the neighborhood when it turns back around in the next cycle."

2) Battery Park City: "If you are looking for a picture of the Manhattan rental market, look no further than BPC. Prices in the neighborhood appeared to be steadily increasing through the summer of 2008, but fall brought prices plummeting 11% overall. Battery Park City doorman one-bedrooms are now the third lowest in all of Manhattan, making them an excellent deal."

3) Harlem: During the peak of the market, Harlem prices increased particularly rapidly as renters were desperate for bargains; however, now that rents are dropping across the board, many Manhattan residents are again looking to more centrally-located ‘hoods. This migration of tenants back downtown has signi?cantly impacted prices in Harlem. Many units are at or near their lowest price points—a trend that we suspect may continue through the downturn."

4) Tribeca: "Even TriBeCa, the symbol of expensive rents in Manhattan, has taken a hit over the past year. Rents have dropped as much as 21% in year-over-year comparisons for non-doorman one-bedrooms and 5.3% overall."

Still breathing? For more neighborhood graphs from studios to 2BRs, do download the full report. Medics are standing by.
· Market Report January 2009 [The Real Estate Group, PDF]