Posts Tagged 'economy'

NY Observer: Rental Vacancy Rates and What They Mean

bedroom-21It’s no secret that Manhattan rental vacancy rates have been rising since the end of the summer. I post the Citi Habitats monthly market reports on this blog every other month (August can be found here; June can be found here and October’s stats should be coming out any day now) and the statistics show that there are more apartments sitting empty in the city than we’ve seen in a long time. But when it comes to the actual cost of these vacancies, for landlords and for the city’s economy, The Observer really spells it out: “It’s easy to forget that these are more than abstract numbers, but rather indicators with immense financial ramifications for landlords with slim balance sheets. At a 5 percent vacancy rate, a landlord with 1,000 units would have 50 unoccupied residences; now, if the vacancy rate jumped to 10 percent, the landlord would have another 50 vacant apartments. If the landlord’s apartments averaged $2,500 in monthly rent, the owner would be losing an extra $125,000 a month in income, and $1.5 million annually.” There’s no doubt that smaller landlords could be struggling and while this may be hard for rent-weary tenants to believe, rising fuel costs and the difficulty of maintaining 100 and 200 year old buildings are making it tougher and tougher for the small-time landlord with just a building or two to make any money at all. Read the full Observer article here.


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Michelle Erfer is a licensed Real Estate Salesperson in New York City.
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