Posted by Jonathan J. Miller -Monday, April 16, 2012, 12:01 AM
I’ll be speaking with Bloomberg’s Ken Prewitt and Tom Keene on Bloomberg Radio’s “Bloomberg Surveillance.” on Monday morning at 9am. We released our rental market report last week and we’ll be speaking about the relationship between the sales and rental market and the disparity between current peak and the last peak: credit policy between those two periods were polar opposites:
4Q 2006: Manhattan Rental Market sets a 20-year (the length of my data series) record high. Credit standards were essentially non-existent by that time in the housing boom causing prices to rise so rapidly that the lack affordability ultimately pushed buyers into the rental market.
1Q 2012: Current credit standards for mortgage lending are so tight that many potential buyers are forced to rent, competing with the existing rental pool and forcing rents to rise – they are currently just 5% short of the 4Q 2006 record.
- [Tight Credit] 1Q 2012 Manhattan Rental Report [Miller Samuel]
- Manhattan Rental Market Charts [Miller Samuel]
- Ken Prewitt and Tom Keene on Bloomberg Radio’s “Bloomberg Surveillance. [Bloomberg]