Apartment market levels off
The apartment market may be reaching a peak, with signs of a slowdown, or at least a flattening, in many major markets, such as New York City and San Francisco, where apartment owners previously had a license to print money.
In Manhattan, for example, 12.6 percent of new apartment leases signed in May included concessions — up from only 1.6 percent in May 2015, according to The Elliman Report. And rents appear to have leveled off in May as well, with the average rental price down 2.2 percent from the previous month, to $4,030 per month, and the median rental price down 0.4 percent from April, to $3,400 per month. The report notes: “Price trends are expected to move ‘sideways’ over the coming months, following a two-year trend of rising rents that ended in March.”
Major apartment landlords also are signaling concern the market is flattening. Equity Residential recently lowered its 2016 same-store revenue and NOI guidance ranges. In a statement, the RE