KEEPING PROMISES

New Year’s resolutions rarely make it past January, let alone through an entire year. But according to Reis analyst Brad Doremus, the New York apartment market followed through with its bold resolution last year: no effective rent declines in ‘10. Did that make you spit out your sugar-free, low-fat, diet ice cream?
And yet, the national average effective rent growth was positive in all four quarters as well. So is it really an accomplishment? New York effective rent growth outpaced the national average in all four quarters, usually by a wide margin. The metro’s rents climbed 5.3%in ‘10, compared to the 2.3% jump nationally. Rent levels currently stand at $2,782. But New York also took a much bigger hit during the recession than the average metro across the US. Between Q3 ‘08 and Q4 ’09, New York effective rents plummeted 7.4%, while nationwide the decline was a more moderate 3.4%. Even given the metro’s strong ‘10, effective rents are still 2.6% below the peak in Q3 ’08; nationally, effective rent is 1.1% below the peak.

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