NYC Apartment Rents Fell in November, Vacancies Rose

By Sharon L. Lynch

Dec. 4 (Bloomberg) -- Manhattan apartment rents fell for a fourth consecutive month in November and vacancy rates reached 2 percent for the first time in almost two years as Wall Street's financial turmoil took a toll on the housing market.

Rents dropped 2.2 percent to 4.9 percent across all sizes of apartments, with the biggest drop in the smallest flats. Studios rented for an average of $1,808, down from $1,901 in October, New York-based real estate broker Citi Habitats said today in a report.

Rents are declining as New York City is forecast to lose as many as 165,000 jobs, including 35,000 in the financial industry, as the impact of the credit crisis spreads throughout the economy. Wall Street firms including Merrill Lynch & Co. have produced mortgage-related losses and writedowns of more than $900 billion and are cutting staff as the economy weakens.