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View Poll Results: Is the rent situation in NYC just part of a bubble or cycle, or is it permanent?
Yes, its a bubble that's bound to burst or drop significantly. 9 16.07%
Yes, but it will only drop in some places, or a little overall. 11 19.64%
No, they're here to stay and will only change very little. 19 33.93%
No, they can only get higher. 17 30.36%
Voters: 56. You may not vote on this poll

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Old 04-20-2012, 03:18 PM
 
Location: USA
8,016 posts, read 9,071,260 times
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these rents are oppressive.
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Old 04-20-2012, 03:49 PM
 
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The last decade has seen a massive movement by the upper/upper middle classes from suburbs into cities, driving the rent up. But at some point that movement has to run its course, because there are only so many people who have the good jobs or family money to pay the ultra high rents. There definitely aren't enough to fill the whole city. So the whole process has a natural end, even if people don't want to see it.

It will be interesting to see what happens what people who live in "up and coming" neighborhoods will do when it becomes clear that the flood of money is over and the neighborhoods aren't going to "come up." I suspect rents in those neighborhoods will fall back to more reasonable levels. Most yuppies are not going to pay $2,000 to live in Bushwick or wherever if it starts to look like the neighborhood is going to stay pretty much the way it is.

It will also be interesting to see what will happen when we have a new mayor...
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Old 04-20-2012, 04:00 PM
 
Location: New York,NY
42 posts, read 129,841 times
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On the LES,the rents have been around $2300.00 for quite sometime.
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Old 04-21-2012, 09:29 AM
 
10,615 posts, read 20,750,046 times
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Article today The City of Sky High Rent

This is a Times article, and in case you have already gone through your 10 free articles per month, here is a small overview:


-In March, [Citi Habitats] found, the average rent in Manhattan — now $3,418 a month — surpassed the all-time high set in 2007.

The last time rents shot up similarly, they were tied to a strong economy, low unemployment and booming business on Wall Street. They are not not now. That disconnect has only increased resentment levels among many tenants. Anecdote (renter feels trapped): expensive to move, expensive to stay, can't afford to buy

-More young people are sharing, even if it means sacrificing a living room
-There has also been a surge of interest in the other boroughs, with many neighborhoods reporting record rents of their own.
-the vacancy rate in Manhattan is hovering around 1 percent.
-just 2,229 rental apartments are scheduled to be added to the market this year in Manhattan, a 30 percent drop from the average number over the last seven years.
-Landlords like to have leases signed in the spring, when they can command the highest rent because so many people are moving for work or school.

The uncoupling of the national economy from New York rents is not typical, said Jonathan J. Miller, the president of the appraisal firm Miller Samuel. “When you see rents rising, it is usually reflective of a strong economy,” he said. “That is not the case now.” Instead, he said, prices are being driven up by a tight credit market that forces people to stay in the rental market and limits new construction. (I bolded this because it relates directly to this thread)

-Rental averages are up in every category, with one-bedrooms rising the most, by 6.5 percent over the past year, to $2,747, according to the Citi Habitats report. Studios rose 3.6 percent, to $1,953; two-bedrooms climbed by 6.1 percent, to $3,865; and three-bedrooms rose 4 percent, to $5,107.
-Interest in lower-priced neighborhoods had surged. In Queens neighborhoods like Rego Park and Forest Hills, rents are surpassing peak prices from 2007
-newly renovated one-bedrooms are commanding around $1,700 a month.

-Note: the majority of apartments in the city are rent-regulated in some fashion and are not included in the averages.
-Small landlords who don't use brokerage firms may be more willing to negotiate. The data for apartments that do not go through brokerage firms are not included in the stats.
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Old 04-21-2012, 10:26 AM
 
31 posts, read 56,016 times
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In the 15 years I've been here I've had my rent drop twice. The first was in 2002/2003 after the tech bubble burst. My rent dropped to what I was paying when I first moved here in 1998.

The second time was in 2008 after the housing bubble burst. My rent dropped to less than what I was paying in 1998.
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Old 04-21-2012, 11:06 AM
 
2,503 posts, read 3,522,162 times
Reputation: 1906
Quote:
Originally Posted by Henna View Post
Article today The City of Sky High Rent

This is a Times article, and in case you have already gone through your 10 free articles per month, here is a small overview:


-In March, [Citi Habitats] found, the average rent in Manhattan — now $3,418 a month — surpassed the all-time high set in 2007.

The last time rents shot up similarly, they were tied to a strong economy, low unemployment and booming business on Wall Street. They are not not now. That disconnect has only increased resentment levels among many tenants. Anecdote (renter feels trapped): expensive to move, expensive to stay, can't afford to buy

-More young people are sharing, even if it means sacrificing a living room
-There has also been a surge of interest in the other boroughs, with many neighborhoods reporting record rents of their own.
-the vacancy rate in Manhattan is hovering around 1 percent.
-just 2,229 rental apartments are scheduled to be added to the market this year in Manhattan, a 30 percent drop from the average number over the last seven years.
-Landlords like to have leases signed in the spring, when they can command the highest rent because so many people are moving for work or school.

The uncoupling of the national economy from New York rents is not typical, said Jonathan J. Miller, the president of the appraisal firm Miller Samuel. “When you see rents rising, it is usually reflective of a strong economy,” he said. “That is not the case now.” Instead, he said, prices are being driven up by a tight credit market that forces people to stay in the rental market and limits new construction. (I bolded this because it relates directly to this thread)

-Rental averages are up in every category, with one-bedrooms rising the m6ost, by 6.5 percent over the past year, to $2,747, according to the Citi Habitats report. Studios rose 3.6 percent, to $1,953; two-bedrooms climbed by 6.1 percent, to $3,865; and three-bedrooms rose 4 percent, to $5,107.
-Interest in lower-priced neighborhoods had surged. In Queens neighborhoods like Rego Park and Forest Hills, rents are surpassing peak prices from 2007
-newly renovated one-bedrooms are commanding around $1,700 a month.

-Note: the majority of apartments in the city are rent-regulated in some fashion and are not included in the averages.
-Small landlords who don't use brokerage firms may be more willing to negotiate. The data for apartments that do not go through brokerage firms are not included in the stats.
Hopefully due to the rent increases in Manhattan, yuppies who can no longer afford those high rents would entertain moving to the Bronx were rents are still affordable.
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Old 04-21-2012, 11:11 AM
 
1,431 posts, read 2,098,617 times
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One of the first comments on the NYT story nails it:

Quote:
These figures are not average New York City rents. They are average Citi Habitat advertised Manhattan rents, excluding rent regulated apartments (the majority of apartments in NYC) and excluding most small landlords (probably also the majority of apartments in NYC). So we're basically talking about non-negotiated rents in yuppie dorms - high rise doorman buildings owned by Rockrose etc.

Asking a real estate broker if you need to pay a lot in rent is like asking the barber if you need a haircut.

Not that all rents aren't high...but these $3500 apartments are in a different world from most of us.
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Old 04-21-2012, 11:40 AM
 
10,615 posts, read 20,750,046 times
Reputation: 8155
Quote:
Originally Posted by BinxBolling View Post
One of the first comments on the NYT story nails it:

.
You don't need to read the comments to know this information. It's in the article. It's also in the summary I provided.
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Old 04-21-2012, 04:37 PM
 
3,333 posts, read 3,284,944 times
Reputation: 2834
There are 2 main conditons driving rents higher:

- people starting families later in life and thus are open to roommates even into their 30's and 40's.

- Expensive homes in NYC make it extremely difficult for folks to come up with 20% down payments and qualify for financing.

These will not turn around anytime soon.
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Old 04-21-2012, 04:51 PM
Status: "I am in preparation mode!" (set 8 days ago)
 
5,514 posts, read 5,503,750 times
Reputation: 4210
Rent will decline when people start buying homes.
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