Rental Prices Continue to Fall in 3rd Quarter
Life’s gotten a little easier for the renting crowd, according to a new report from Brownstone Homes (a firm we’ll admit to never having heard of). In the third quarter, which is the period of biggest turnover, more than half of new leases in Brownstone Brooklyn were done at lower prices than the preceding period….
Life’s gotten a little easier for the renting crowd, according to a new report from Brownstone Homes (a firm we’ll admit to never having heard of). In the third quarter, which is the period of biggest turnover, more than half of new leases in Brownstone Brooklyn were done at lower prices than the preceding period. In Brooklyn Heights and Park Slope, the reductions were as much as 15 percent. Not surprisingly, apartments are sitting on the market longer, resulting in a correspondingly higher overall vacancy rate. All fine and good, but we’d like to know something about the number of data points.
Brooklyn Rents Down, Apartment Vacancies Up [Brooklyn Eagle]
Leases Up, Rents Still Down in Brooklyn [Curbed]
DIBS – No doubt, If Thompson is elected I give it 2yrs before the wheels come totally off the bus….then people will be rudely and clearly reminded why they are called the ‘bad old days’ in NYC
BHO;
How about that fabulous endorsement President Obama gave to Thompson yesterday????
fsrq…BHO will get what he wants if Thompson is elected. What a hack.
“I guess the other half of rents that are rising are considered ‘exceptional data points so as not to skew.'”
Survey says…ehhhh! I said, they said, they REMOVED exceptional data points. The other half obviously remained unchanged with maybe a few slight exceptions (otherwise they would have mentioned it). Your example would be in the removed data (congrats by the way for that exceptional number).
Properties sold for below 10 X annual rent during the 90’s. Clinton Hill floor-throughs were going for $1,200/mo. $1,200 X 4 (floors) X 12 (mos) X 10 = $576,000. Guess what? Brownstones there, even move-ins, were going for less than that from ’95 to ’00. Trust me!
***Bill Thompson for Mayor***
BTW – while I agree prices will continue to slide for some time I still can think of no greater endorsement for Michael Bloomberg on this site then the fact that the person who is predicting massive deflation of NYC RE (i.e. NYC being relatively less desirable) – is the same guy who supports Bill Thompson for Mayor so strongly that he puts it as a signature to each and every post!
The only thing he needs to point to is Tishman Speyer over at Cooper Village. If they did it, EVERYBODY did it. No data needed. Common sense.
***Bill Thompson for Mayor***
Posted by: Brownstones Half Off at October 21, 2009 10:22 AM
EVERYBODY??? ROTFLMMFAO
Stupidity is showing.
“BHO again on the lunatic fringe.”
This lunatic called everything: Stock crash, RE crash AND rental drops. I’m also calling a continued downward spiral on brownstone prices well beyond New Years. Take that you little hedge fund manager!
Brokedeveloper is all up in your asses, DIBS and ‘dope. The only thing he needs to point to is Tishman Speyer over at Cooper Village. If they did it, EVERYBODY did it. No data needed. Common sense.
***Bill Thompson for Mayor***
I cant say re: Brooklyn but in the Bronx Rent Stabilized market – (market) rents are only very slightly softer (if at all) and renting is still strong.
In terms of holding apartments vacant, again I cant speak what someone in an underwater situation would do (my guess is whatever would give them more leverage with the bank – which isnt clear) but for the vast majority of leveraged (but not over leveraged) buildings – some rent is far far better than no rent – I wouldnt let an apartment sit for more than 3 weeks without lowering the asking (and frankly it is rare) – also as a side note – LL are loath to lower ‘rents’ prefering to give concessions because the building’s value is tied to the RR and a concession doesnt generally show up on the RR (well it would when a RE person examines RR because they’d probably be smart enough to ask for collectibles – but Banks often arent that smart – as we all found out)
BHO, only half the rents are falling. I guess the other half of rents that are rising are considered “exceptional data points so as not to skew.”
BTW, when was the last time Brooklyn properties sold for 10X annual rent?