August 26, 2010 was filled with interesting surprises! For the last two years, the rental market in New York has been favorable toward renters, but now that has apparently changed. According to The Wall Street Journal, rental activity levels in Manhattan continue to heat up. 
The article mentions Harlem and reports that prices on studios with doormen are on the rise in Harlem. They’re up around 5 percent. Wow. How did that happen? What happened to the double dip recession? I guess it bypassed the NY rental market!
After I read that article, I turn around and read an email from a reader telling me Marcus Samuelsson released photos on his website about the latest construction happenings with Red Rooster. Along with the pictures, Samuelsson states he is “super excited for the opening and it feels like the community is sharing in the excitement too!” Awh…that’s nice. I just hope the opening of Red Rooster is soon!
See what happens in a course of a day. The rental market heats up and Red Rooster pictures appear! Only in New York…right?
Why did rental prices on doormen studios go up in Harlem? It has nothing to do with MISSING the recession but everything to do with BEING in a recession.
In any market, more demand with less inventory will increase prices. This current recession means:
1) More people are seeking studios because they can no longer afford bigger apartments.
2) More people are moving to areas like Harlem because they can no longer afford the UWS/UES/downtown
3) People who are moving from more expensive neighborhoods tend to seek out doormen buildings in Harlem because of security concerns. Crime in the Harlem precincts has gone up this year, and there has been quite a lot of widespread publicity of that fact.
If you look at family-sized apartments–2 bedrooms or more–and non-doormen buildings, I don’ t think you’ll see that kind of an uptick. Doorman studios are not a good indicator of a rising market, but rather a declining market where people are making tough decisions regarding size, security, and location.