Manhattan renters opt for smaller spaces

Due to failing economy
March 19, 2008 3:22:50 PM PDT
The worsening economy has spread into the rarefied world of Manhattan apartment rentals. The Real Estate Group released a report Wednesday that says the average price of one- and two-bedroom apartments in Manhattan went down over the last month. But the price of studio apartments went up.

Real Estate Group Chief Operating Office Daniel Baum says that anticipated job cuts and the sagging dollar "have planted seeds of doubt in the minds" of many New Yorkers. He says they are responding by sacrificing space and service for cheaper apartments.

But Manhattan apartments still don't come cheap. The average price of a one-bedroom in a doorman building in SoHo will still run you $4,100.