Tuesday, March 01, 2011

Whoa Boy, 8% Rent Increase 2010-2011!

While we're grateful for all the little signs that the national economy is perking up, the inevitable rise in New York City rents is starting to creep upon us as well.

This Crains New York article references a report put out by The Real Estate Group of New York, a respected brokerage. (You can see the full report here: http://www.tregny.com/manhattan_rental_market_report)

The report's analysis shows that rents have risen 8% year over year. If it didn't feel that bad, it might be because they have been flat over the past 2 months or so.

Also mentioned is the fact that current rent levels are actually very close to where they were in 2008. So they dipped a bit and New Yorkers got a reprieve, but they are on their way back.

Which makes sense when you think about it: all those new buildings and apartment renovations were done when rents were at all time highs. Landlords have been eating it for a while, and they want to get back to their projected profits as soon as possible.

What does this mean for the rest of 2011? If you have a lease renewal coming up, expect the rent to go up, though probably not as high as 8% - those apartments were the ones that went vacant.

As always, whether to renew, try to find something bigger/smaller or in a different location is a personal decision depending on your life. But be ready.

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