The dog days of summer usually aren't for real estate, but this summer was "a story of unrealized dreams" for Manhattan landlords, The Real Estate Group's September 2009 rental report opines. Gee, tell us something we don't know. "Many of the landlords and property managers who were eager to test the market by increasing prices and removing incentives...saw quickly that these tactics were premature." Harlem took home the prize for least expensive neighborhood in all six-categories -- studios through two-bedrooms, doorman and non-doorman -- with price drops of more than 10 percent for doorman two-bedrooms.
The good news? Manhattan "will again see a cold winter for rentals." Oh, wait. At least rental prices seem to be stabilizing, TREGNY says, thanks to more activity in September.
But there's not much to be upbeat about in TREGNY's outlook for the rest of the year:
It seems unlikely that the market will rebound in 2009. Given the depth that the market has fallen to date, significant gains are necessary for a recovery. Such increases, which would have been a stretch even for the summer market, are even more unlikely to occur during Manhattan’s slower seasons. Joining the pity party is Citi Habitats, which released its first peak rental season market report. Unsurprisingly, Manhattan peak season rents are down 8 percent for one-bedrooms and 11 percent for two-bedrooms.
·Market Reports [TREGNY]