A few months ago we mentioned a Citi Habitats report stating a slight increase in vacancy rates. Well, in October the situation seems to have reversed. Ultra-low vacancy rates and high rents are the norm now.
In plain language, when vacancy rates increase, more people move and it becomes easier to find an apartment. Often (but not always), this is accompanied by a downward movement of prices.
Well, this was certainly not the case in October, if the newly issued report by Citi Habitats (summarized in this RealDeal article) is to be believed.
Vacancy rates are once again low.. very low. The West Village, for example, shows an insanely low 0.35%. The highest rate in Manhattan is in Murray Hill (1.25%) and the average on the island is 0.80%.
As one would expect, such low rates correlate with high prices. SoHo and TriBeCa lead the pack here with average rentals going for $4,316 per month (if landlords actually enforce the 45xrent income rule, you better be making over $200,000 per year to rent that coveted average apartment).