Recently, we’ve seen numerous signs that the housing market in one of the world’s biggest bubbles, London, has likely popped. It appears New York City isn’t too far behind.
From Bloomberg:
Manhattan apartment vacancies reached their highest level in more than nine years, a sign that the post-recession run-up in rents may begin to cool.
The vacancy rate in November was 2.87 percent, up from 2.31 percent a year earlier and the highest since August 2006, according to a report Thursday by appraiser Miller Samuel Inc.and brokerage Douglas Elliman Real Estate. Landlords eager to fill empty units lured tenants with the most concessions since 2011.
“We’re reaching the point where things can’t go up as much,” Miller said in an interview. “The economics don’t make much sense anymore.”
The number of newly signed leases climbed 7.7 percent in November to 3,082, Miller Samuel and Douglas Elliman said. Fourteen percent of those deals came with some kind of sweetener, such as a month’s free rent or the landlord’s payment of the broker fee — the biggest share since March 2011. Last November, only 4.8 percent of new leases came with concessions.
The luxury-apartment market, the top 10 percent of all rentals by price, was the only category with a decline in prices. The median rent in November fell 1.4 percent to $8,537.
For related articles, see:
Luxury London Real Estate Prices Plunge 11.5% Year-Over-Year
Luxury London Home Sales Plunge 26% – Has this Mega Real Estate Bubble Finally Burst?
Introducing Ghost Skyscrapers – NYC Real Estate Goes Full Retard
In Liberty,
Michael Krieger
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