Manhattan Apartment Sales Plummet To 6-Year Low While San Francisco Remains Most Expensive Rental Market In US

This is a syndicated repost courtesy of Confounded Interest. To view original, click here. Reposted with permission.

Reuters flashed this headline: “Manhattan apartment sales plummet in January to 2012 low” 

That is not all that surprising since 2012 marked the last time that US Core Price price growth {YoY) exceeded 2% since 2008. In other words, the last time the US had 2% core inflation.


And Manhattan’s apartments are seeing a large wave of new leases with incentives.


But Manhattan and its surrounding environs are not the most expensive rents in the USA. San Francisco has the highest rents  with San Jose in  third place. New York City is in second place.

You will notice that the highest rent cities occur on the East and West coasts where water prevents growth to at least one side and local zoning and building restrictions tend to be the greatest.


Here is a worriesome chart for those who desire a one bedroom apartment. It seems like builders like to build more expensive, multi-bedroom units rather than modest, 1-bedroom units (supply crush).


Here are the top 25 US cities in term of 1 and 2 bedroom rents. Several non-coastal cities begin to appear. Chicago is on Lake Michigan, Denver is sandwiched between the Rocky Mountains and prairie (with uber-strict land use regulations), and Scottsdale AZ in bumping up against mountains. The other cities suffer from expansive land use regulations (watch TV’s Parks and Recreation as Leslie Knope tries to build a park).


Now for the bottom 25 US cities. None of these cities are on the coasts and Ohio is represented by 4 cities: Cleveland, Columbus, Akron and Toledo (home of Tony Packo’s Cafe).


Fort Wayne, IN is notable for being the birthplace of Jenna Fischer (Pam Beasley from TV’s The Office). And she now lives in Los Angeles.


And if you visit Toledo OH, stop by Tony Packo’s Cafe for some healthy cuisine!


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