Prudential Douglas Elliman Releases Manhattan Rental Market Overview for Q2, 2009

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Rental activity experienced late surge in activity

After sharp drop last fall, a modest gain in number of rentals

(NEW YORK, NY) -- There were 2,346 rentals in the second quarter, down 58.3% from the 5,624 units of the same quarter last year, but up 2.4% from the 2,290 units in the prior quarter. Inventory increased 28.8% to 7,290 apartments from 5,658 in the prior year quarter, yet declined 3.1% from the 7,522 units in the prior quarter. Days on market nearly doubled to 83 days from 45 days and listing discount increased to 9.5% from 2.6%, both compared to the prior year quarter. There was a late quarter surge in rental activity in the quarter not attributable to seasonal trends. The month of June accounted for 46.3% of the total rentals for the quarter, while May accounted for 33.3% and April accounted for 20.4%. Last year at this time, each month saw a consistent number of rentals.

Rental price indicators trend lower

The average rent per square foot was down 17.5% to $44.16 from $53.30 in the prior year quarter. Because the average size of a rental unit expanded 21.7% to 1,043 square feet over the same period, the average rent increased a modest 0.9% to $3,839 and median rent slipped 3.1% to $3,100 from the prior year quarter respectively. The West Side had the highest rent per square foot at $49.64 and the lowest year over year decline at 7.6%.




Rental Market by Size








Rental Market by Location

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