Prometheus 6   

Well, they did exclude NYC, so maybe it's true

Apartment Glut Forces Owners to Cut Rents in Much of U.S.
By DAVID LEONHARDT

MEMPHIS, Nov. 25 � Renting an apartment in much of the country these days can feel a little like waking up on your birthday.

Waiting for the tenants in some building lobbies around Memphis every morning are free cups of Starbucks coffee. In the Atlanta suburbs, people who move into one garden-style apartment building receive $500 gift certificates to Best Buy, the electronics chain. In Cleveland, Denver and many other cities, landlords have been giving new tenants gifts worth $1,000 or more: one, two or even three months of rent-free living.

While rents have continued to rise in many big cities on the coasts, including New York and Los Angeles, they are falling in more than 80 percent of metropolitan areas across the country. Low interest rates in recent years have persuaded many families to move out of rented apartments and buy their first homes at the same time that developers have been putting up thousands of new rental buildings, leaving many landlords desperate to fill apartments.

The portion of apartments sitting vacant this summer rose to 9.9 percent, the highest level since the Census Bureau began keeping statistics in 1956.

"I've been doing this for 30 years, and this is the worst rental climate I've ever seen," said Leonard Richman, president of the Sunshine Corporation, which manages almost 4,000 apartments in Memphis. "Rents have gone down to where they were about three or four years ago."