An article today from the manhattan-apartment-rents-soar-again/?mod=google_news_blog" target="_blank">Wall Street Journal poses an interesting scenario that could have huge implications for Manhattan’s red-hot apartment market. Rental rates still continue to climb to pre-recession levels and beyond, according to April figures. But there could be a market killer looming on Wall Street, says WSJ writer Dawn Wotapka.
In the article, Wotapka writes, “There are factors that might lessen the power of landlords over Manhattan’s apartment markets. Layoffs in the financial-services industry, which traditionally helps drive the Manhattan rental market, could put downward pressure on rents, as could competition from thousands of new units hitting the market.”
While the article retains a bullish outlook for the future of Manhattan rents, it does introduce this unfortunate possibility to the conversation. If the stock market stays in a long-term tailspin, will renters catch a break in New York? Or will multifamily owners continue to pump rents and cash in on a market that struggles to provide adequate supply to meet the robust demand? Let us know what you think by leaving a comment.