Tough times in Manhattan may have a silver lining.
Apartment rental rates in the borough have plummeted roughly 8 percent in the busy May-August renting season compared to the same interval last year, Bloomberg News reports citing data from Citi Habitats.
The cost of a studio apartment fell 11 percent to about $1,763, according to Citi Habitats. One-bedroom apartments were down 8 percent to $2,425 and two-bedrooms fell 11 percent to $3,421.
Citi Habitats said unemployment reversed the four-year trend of rent increases.
New York City joblessness rose to 10.3 percent last month, according to a state Labor Department report published last week.
"We all knew rents had to adjust," Citi Habitats President Gary Malin told Bloomberg. "But a lot of people who work in Manhattan have moved back."
Two-thirds of Manhattan residents rent rather than own their homes, according to the U.S. Census Bureau.
The Citi Habitats report is based on signed leases. It does not consider tenant discounts such as a free month of rent negotiated with the broker.
