The news keeps getting grimmer for the Manhattan rental market. Recent headlines include an uptick in vacancies and some fairly disheartening spring numbers, and now brokerage The Real Estate Group has issued its July report, with the gist being more heavy declines over 2008?including a double-digit drop in one-bedroom apartments in doorman buildings. It gets worse, landlords. Summer is usually when the market heats up, but the sizzle has fizzled and now the rental season is looking about as promising as the weather. And if you're reading this in the Curbed archives at some point in the distant future: the weather totally sucks!
According to TREGNY rents were flat or declined from June to July, and demand for inventory hasn't picked up. Manhattan "appears to be missing its summer peak," the market report introduction opines ominously. In an accompanying press release, TREGNYs COO says a bad July could mean a bad fall:
"Since July is usually the barometer for fall numbers, it will be interesting to see what happens come fall,” says Daniel Baum, COO of The Real Estate Group, “We’re hearing that many new hire classes have been pushed back until September or October, so it’s possible that rental activity will be more evenly spread over the second and third quarter as these new residents hold off relocating until fall.” “On the other hand, this lack of demand could be just that, which would not bode well for the market when the summer comes to a close.”