With a glut of high-end apartments still hitting an already overheated market in New York, billionaire real estate investor Richard LeFrak suggests rental rates likely need to dip as much as 15% for it all to be absorbed.

LeFrak spoke to reporters on Bloomberg Television, noting that developers build high-end products that need incomes that don't currently exist in the market. There's a great demand for more affordable units, though.

New York landlords are already feeling the pinch as renters take advantage of a flood of new buildings to negotiate concessions and price cuts. Rents fell last month for Manhattan apartments of all sizes, the first across-the-board decline in at least four years, as property owners compromised to keep units from going empty.

Landlords whittled an average of 3.3 percent off their asking rents in February, compared with 2.5 percent a year earlier, according to appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate. On top of that, concessions such as a free month or payment of broker’s fees were offered on 26 percent of all new leases, the second-highest share in the firms’ records.

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