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NYC rents dropping?

dtmt

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I've always fancied the idea of living in NYC, but never really seriously considered it because of the ridiculous cost of living. However, now that unemployment in the city has skyrocketed and real estate values are in free fall, I was wondering if rents are making similar drops, or are they expected to in the next year or so?

After browsing some job postings in the area and reading some articles, I was surprised to find that my prospects for finding a job there are pretty good in spite of the overall economy. However, I am committed to staying in my current job until at least the end of this year so even if I moved it wouldn't be until sometime next year. But I was thinking that this could work in my favor if rents are on a steady downward trend for the rest of this year.... so have any of you NYC folks noticed that this might seem to be happening?
 

samblau

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If you go to a realtor they will tell you no. Reality is that rents have dropped but bear in mind that they were skyrocketing for at least 5 years and that the rental market hasn't yet fully digested what 2 years of no bonuses, mass layoffs, kids not getting money from their folks and a glut of new "luxury" rentals in "hip" (read thrown up haphazardly 50 story buildings on the far west side and uptown amongst other places) will do. Overall your assessment might be right. A lot of my friends who have hit their 30's don't see the point...couples make $150K or more combined and after taxes and student loans can barely afford a 500 sq. foot 1 bdrm and don't save a penny whereas they could spend the same $2-2.5K p/m and get a $500k house in the burbs . Next year you might see the rental market approach normality, relatively speaking, i.e. a liveable studio for $1500.
 

babygreenspots

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Originally Posted by samblau
If you go to a realtor they will tell you no. Reality is that rents have dropped but bear in mind that they were skyrocketing for at least 5 years and that the rental market hasn't yet fully digested what 2 years of no bonuses, mass layoffs, kids not getting money from their folks and a glut of new "luxury" rentals in "hip" (read thrown up haphazardly 50 story buildings on the far west side and uptown amongst other places) will do. Overall your assessment might be right. A lot of my friends who have hit their 30's don't see the point...couples make $150K or more combined and after taxes and student loans can barely afford a 500 sq. foot 1 bdrm and don't save a penny whereas they could spend the same $2-2.5K p/m and get a $500k house in the burbs . Next year you might see the rental market approach normality, relatively speaking, i.e. a liveable studio for $1500.

Nice assessment. I fear that Manhattan's status as the only place in the country with a convenient and vibrant urban space spread through the entire city will prevent rents from dropping very far. Where else can one live aside from Manhattan and not have to buy a car, shop at malls, etc?
 

Pennglock

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Rents have dropped, for sure. Some of the spots I looked at 18 months ago have come down 5% or more.

Overall I think the city is really hurting. Walk around and there are just less people dining out and hitting the clubs.

DTMT, what industry are you in with a glut of jobs? The market for Finance positions in the city is just brutal right now.
 

bant

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i believe rents in most areas of manhattan have dropped 10-20% from the peak and there is a lot more to drop when you think about the mass wall street layoffs, lack of transplants/new college grads that will be moving to nyc, etc. that said, there are more concessions these days -- no brokers fee, 1-2 months free rent etc. that lowers your effective monthly rent. supply/demand will always bouy the very desirable areas however.
 

chorse123

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Originally Posted by samblau
whereas they could spend the same $2-2.5K p/m and get a $500k house in the burbs

I always thought that the additional costs from property tax and transportation (including car + insurance + possible train station parking) added quite a lot to that.

Are there NYC suburbs where a 20-30 minute train drops you off in a walkable old "downtown," like Evanston or Oak Park in Chicago?
 

Manton

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Originally Posted by chorse123
I always thought that the additional costs from property tax and transportation (including car + insurance + possible train station parking) added quite a lot to that.

Are there NYC suburbs where a 20-30 minute train drops you off in a walkable old "downtown," like Evanston or Oak Park in Chicago?


Bronxville.
icon_gu_b_slayer[1].gif


Actually, there are a lot of villages like this is southern Westchester, but the taxes are abysmal. I can at least walk to the train, which makes a difference. Paying for a parking spot is not really an issue, because the waiting lists for spaces is usually decades.
smile.gif
 

Jack2000

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Originally Posted by chorse123
I always thought that the additional costs from property tax and transportation (including car + insurance + possible train station parking) added quite a lot to that.

Are there NYC suburbs where a 20-30 minute train drops you off in a walkable old "downtown," like Evanston or Oak Park in Chicago?


I did the westward migration from East 79th street to Montclair, NJ. It's 12 miles west of Manhattan. 30-35 minutes direct train to Penn Station. 20 minute drive at night, but it can be 1-2 hours at rush hour. It has big, old, attractive architecture. Several nice downtown areas, tons of restaurants, a great live music venue--I saw the Black Keys a couple of weeks ago. You get a lot more for your money in the burbs, but it's not cheap and it has it's own set of issues.
 

fcuknu

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I havent seen rent drop by any considerable amount. I pay about 1800 for a studio right now and I am looking to move in July and I see no difference in prices as apposed to what I saw last year. You could say that they went down 6% vs inflation if you want to be technical....
 

fcuknu

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Originally Posted by Jack2000
I did the westward migration from East 79th street to Montclair, NJ. It's 12 miles west of Manhattan. 30-35 minutes direct train to Penn Station. 20 minute drive at night, but it can be 1-2 hours at rush hour. It has big, old, attractive architecture. Several nice downtown areas, tons of restaurants, a great live music venue--I saw the Black Keys a couple of weeks ago. You get a lot more for your money in the burbs, but it's not cheap and it has it's own set of issues.

I hope you are in Upper Montclair...
 

whiteslashasian

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A friend of mine is paying a rent of $3400 a month for a 2 bedroom (I believe signed the lease back in June '08). Said he saw an ad the other day for the same layout apartment in his building for $2800...Sucks for my friend.
 

poorsod

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Originally Posted by Manton
Bronxville.
icon_gu_b_slayer[1].gif


Actually, there are a lot of villages like this is southern Westchester, but the taxes are abysmal. I can at least walk to the train, which makes a difference. Paying for a parking spot is not really an issue, because the waiting lists for spaces is usually decades.
smile.gif


I like Bronxville but the village is self is quite small. I have a friend who has a place in Bronxville and she doesn't even drive.
 

haganah

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Originally Posted by fcuknu
I havent seen rent drop by any considerable amount. I pay about 1800 for a studio right now and I am looking to move in July and I see no difference in prices as apposed to what I saw last year. You could say that they went down 6% vs inflation if you want to be technical....
You don't see it because you're at the lower end. Realtors will not only admit to it, but there are a million articles if anyone does a google with numbers. I reduced my rent by a good amount after asking my landlord and could have gone even lower had I simply moved, but didn't have the time to. Rents have dropped, landlords are often paying for broker fees, 1 and 2 months free are done quite often, and a lot of places are giving "gifts" (ie free tvs). And it's not just 6% either.
 

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