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Three Cents Worth: Manhattan's Cloudy Rental Discounts

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[This week, real estate appraiser, Curbed graph guru, blogger, and podcaster Jonathan Miller charts Manhattan rental demand.]

Although we are releasing our October rental report for Douglas Elliman tomorrow, this is Renters Week on Curbed, so every day is a rental and here is the market through the end of September (3Q 12). There's a lot going on in this chart, but I repeat, this is Renters Week.

I took a look at the relationship between $ listing discount ($ difference between the original rental list price and rental price) and days on market from original list date. The cloud comments generally refer to the $ listing discount columns, but it's interesting to see how much DOM flows (line) the same way. The bigger the $ distance between market rental price and list rental price, the longer a property takes to rent. Same logic applies to the purchase market.

The surge in listing discounts after Lehman collapsed shows how soft the rental market was in 2008, 2009 and early 2010 and why landlords became aggressive with free rent until the past year when it was no longer necessary.

About that arrow?

It's amazing that excessively loose mortgage underwriting (credit) and irrationally tight mortgage underwriting result in the same thing: rising rental demand.
· Matrix [matrix.millersamuel.com]
· Three Cents Worth archive [Curbed]