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Manhattan rents drop for first time in two years; may be close to plateau

…The median monthly rent dropped 3.1 per cent from a year earlier to US$3,095, the first such decline since June 2011, according to a report by appraiser Miller Samuel and broker Douglas Elliman Real Estate….

…Manhattan home purchases jumped to the highest level since 2007 in the third quarter, Miller Samuel and Douglas Elliman said in a report last week….

…”Where did those people come from? They came from the rental market,” Jonathan Miller, president of Miller Samuel, said in an interview….

…The number of new leases signed in September jumped 36 per cent from a year earlier to 3,445 as some renters sought cheaper deals, Miller said.

Manhattan units available for rent took an average of 45 days, or 16 per cent longer, to find tenants than they did a year earlier, while landlords agreed to discounts of 3.9 per cent, compared with 2.3 per cent a year ago, Miller Samuel and Douglas Elliman said….

…A limited supply of new multifamily properties will prevent rents from decreasing dramatically, Miller said….

…”There’s an affordability issue right now because the economy isn’t robust like it is in 2006,” Miller said….

…Across the East River in Brooklyn, rents soared 10 per cent in September to a median of US$2,800, the second-highest in five years of record keeping, as tenants flocked to the most populous borough in search of more affordable options, Miller Samuel and Douglas Elliman said….

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