The New York Rental Market Continues to Rise…

The New York rental market continues to rise, reports the New York Times.  Reflecting back on 2011, the number of apartment units decreased while rental prices increased.  And there is no indication that this trend will change in the near future.  In fact, the decreased inventory has actually set new rent records, with tenants bidding up rents especially in unsuspecting neighborhoods like the Financial District and Midtown West.  The New York Times reports that fewer new buildings are scheduled to open this year, which means that this pressure will inevitably trickle down to the lower end of the market.  Part of the reason for this decreased inventory is that construction financing has been tight and the number of building permits issued by the city fell drastically after 2008.  Time will tell if potential tenants will feel this decrease in availability.