A report from real estate appraisal firm Miller Samuel and Prudential Douglas Elliman indicates the median effective apartment rent in Manhattan rose to $3,121 from $2,849 over the past year, Bloomberg reports.
Rents reportedly climbed 9.5 percent in the final quarter of 2011, which the report attributes to landlords deciding to cut concessions and raise rents despite that quarter traditionally being the slowest period in terms of leasing activity. This would not have been successful without high demand, underscoring the level of interest in rental properties at this time.
According to the research, the pace of apartment rentals is the second-fastest on record, with 17 years of data. Units spent an average of 37 day on the market, compared to the fastest average of 33 days during the second quarter.
NYC property management companies and property owners are likely pleased with that pace, as well as the abnormally high demand during the fourth quarter. It is unclear whether the factors which led to that state of affairs are stable enough to sustain the current multifamily sector performance. Even if business slows, however, the market may remain in a strong position.