The Real.Est List
TREGNY October rental report: Rents are up, but why?
The Real Estate Group of New York's October Manhattan Rental Market Report, released today, says rents are up .7% since last month and 5.52% compared to last year. Inventory rose by a mere whisper of .7%.
What accounts for the up market? According to TREGNY, “The best news for the health of the rental market comes from employment data released early this month. It appears that the financial sector in New York City has stopped cutting and started adding back jobs into the market." Looks like the Wall Street Journal didn't get the memo.
Last week, the Journal reported that the headcount of the city's investment banking and securities industry plunged by almost a quarter since last September. The story is locked behind the WSJ's paywall but helpfully reprinted on a StreetEasy thread discussing the pessimistic bonus and employment outlook at the city's largest banks. So whether or not the financial sector is behind September's positive rental market results, negative momentum may be coming soon to a vacancy near you.