Wealth Finance

Manhattan rents are through the roof.

With the economy improving and a lack of financing making it difficult for some to purchase, rentals are back in vogue, according to real estate reports.

The average rent for a one-bedroom in the city hit $2,672 during the spring, up 9.2% compared with last year and up 5.5% from the first three months of 2011, reports real estate brokerage firm Citi Habitats.

Rents increased by more than 10% in many apartment categories. Large apartment seekers witnessed the biggest hikes compared with last year, with the average price of a three bedroom surging 11.3% to $4,985.

“Currently, the city’s rental market is experiencing a perfect storm,” said Citi Habitats’ President Gary Malin. “There is high demand and low vacancies. Owners are able to increase asking rents, often dramatically.”

Manhattan’s vacancy rate dipped down to .72% in the second quarter, compared with .97% a year ago.

Landlord concessions such as a month’s free rent or payment of a broker’s fee – popular during the recession – have become a thing of the past. “Rent concessions have basically disappeared, with the exception in new projects, where it is common for landlords to offer concessions to expedite absorption of units,” said Yuval Greenblatt, executive vice president at Prudential Douglas Elliman.

Some neighborhoods have become almost untouchable. Manhattan’s most sought after – SoHo/Tribeca – saw the average rent for a one-bedroom reach $3,454. At 55 Thompson St., a SoHo building developed by Manhattan Skyline, remaining two- and three-bedroom units start at $18,000 a month, according to Prudential Douglas Elliman.

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