The hottest leasing season of the year comes to a close and many multifamily owners and managers in Manhattan don't have much to show for it.
According to a Bloomberg report, landlords wrapped up the summer season with no rent growth - a sign the market has hit its ceiling. With a 40% jump in listings, the median monthly rent in August stagnated at $3,399, just a dollar below the year prior.
New York leasing typically jumps from May through August as new college graduates move to take jobs in the city and families settle down before the start of the school year. That demand was still there, but this time it didn’t translate into higher rents as it has in years past, said Jonathan Miller, president of Miller Samuel. Competition from a surge of newly built towers is forcing landlords to grant more tenant breaks to keep their apartments from going empty.
“The price growth is not there because of the new product that’s coming on,” Miller said in an interview. “At least over the next year or two, we’re challenged by excess supply.”