Economic Recovery Might Make You More Broke
The economy is improving in New York, so prepare to feel poorer!
Because the real estate market has grown stronger recently, Manhattan rents are expected to balloon from 6 to 12 percent, DNA Info reports.
The data, from residential brokerage firm BOND New York , suggest that high rents have returned and "will only climb higher."
Landlords will try to pocket 6 to 10 percent more from their current tenants. And it's worse if you're looking for a new place to live in Manhattan, where empty apartments are going for 8 to 12 percent more than in the past, according to website.
In 2011, studios shot up 8 percent from $2,174 to $2,929 monthly, DNA Info notes. Three-bedroom apartments swelled 15 percent -- to $5,577.
It's a confidence issue, really: More apartments are occupied, so landlords know they can get more cash. (Retail rents also seem to be swelling, as Fifth Avenue rates might soon hit $3,000 per square foot.)
The only good news (which is still shitty) -- the market isn't volatile, so the big changes will take place over time, not in short periods such as months or quarters.
"The trend is that year over year, rents are up. Quarter over quarter, they were relatively flat and stable," says Gary Malin, president of Citihabitats, one of New York's largest residential brokerage firms. "It's been in the landlords' favor -- occupation has gone up and vacancies have gone down, and they're not making concessions."
Ultimately, Malin says, the upward shift in rent holds steady.
"The message is that the overall market performed incredibly well," he tells the Voice. "If you were an owner, you were seeing all the metrics going in your favor."
So there you have it: Economic recovery makes the City even more of an unlivable moneysuck.
Get the ICYMI: Today's Top Stories Newsletter
Catch up on the day's news and stay informed with our daily digest of the most popular news, music, food and arts stories in New York, delivered to your inbox.