NYC Housing shocker: Rents are declining What happens when the market is allowed to work

Crain's New York Business reports:

After years of stories about rising rents in New York City, there’s a new dynamic as supply has caught up to demand. Three headlines paint the picture.

New York Housing Is Getting (Gasp!) More Affordable said The Wall Street Journal earlier this month as it reported that the latest comprehensive housing and vacancy survey by the U.S. Cenus Bureau showed a record number of units at 3.47 million, an increase of 117,000 since 2011. The vacancy rate inched higher to 3.63% and household income rose faster than rents.

Manhattan landlords race to fill apartments in declining market blared a Thursday story from Bloomberg News. Rents in Manhattan fell below the year-ago level for the third consecutive month and half of new leases involved concessions like rent discounts and free months, Wi-Fi or parking.

For you rookies out there: supply is an upward sloping curve...