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Manhattan Rents Still Headed Up, With No Sign of Stopping

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Remember those dark days of the recession, landlords? It probably seems like a dream now, especially in light of the second quarter rental reports that are out this morning. For landlords, the quarterly stats are even better than croissants for breakfast. For renters?well, you might want to splurge on that pastry.

According to Prudential Douglas Elliman's second quarter report, median face rents are once again down compared to the second quarter of 2010, this time by 3.5 percent. (The median rent, $2,896, is the same as in the first quarter.) But that percentage doesn't factor in the concessions that made the rental market a little more tenant-friendly over the past few years. Concessions are still drying up?the average concession is about 1.2 months of free rent, compared to 2 months last year?so when they're included in the numbers, Manhattan's median net effective rent is actually 7 percent higher than it was at this time last year. There were 11 percent fewer rental listings on the market, and they're spending an average of 33 days on the market, compared to 53 last year. And since we've got rent checks to write, we're going to go back to thinking about pastry now. Who's with us?
Citi Habitats also released its second quarter rental market analysis at the stroke of midnight, and the report contains a few stats on vacancy. Manhattan's vacancy rate was 0.72 percent during the second quarter, down from 0.97 percent a year ago?and in fact, the Q2 number is the lowest vacancy rate Citi Habitats has seen since it began collecting that data in 2002. Citi Habitats also recorded rental prices up significantly for studios through 3BRs, but that doesn't entirely agree with the Elliman data. Which is as follows:

· Market Reports [Elliman]
· Rental Market Reports coverage [Curbed]