[Jpierpont]

Seems to be going HAM. Even the Becker building is at 88% capacity.

New Haven Has Nation's Lowest Vacancy Rate | New Haven Independent

PAUL BASS PHOTO
Nicotra.
A national ranking released this week affirms what local developer Chris Nicotra has been seeing around town: “The biggest problem we have with apartments in the city is that we don’t have enough.”

Nicotra (pictured), president of Olympia Properties on Temple Street, made those remarks Thursday, the same day that a report from the real estate research firm Reis Inc. found that the New Haven area has the lowest apartment vacancy rate in the nation.

Only 2.1 percent of New Haven area apartments are vacant, according to the firm. New York had the second-lowest rate, with 2.4 percent.

The rate is for the New Haven “market area,” which includes a rather large swath of Connecticut including Waterbury and Meriden.

New Haven vacancies “stem from constant demand for a small inventory of market rate rentals, fueled by the education sector,” observed Reis Head of Research Victor Calanog.

The news comes as the nationwide vacancy rate fell to 5.2 percent, the lowest rate in 10 years, according to the firm.

“This is good news,” responded Mayor John DeStefano in an emailed statement Thursday. “Low apartment vacancies translate to a strong property tax base to pay for important city services, and population growth that helps support business growth and job creation. It also challenges us to develop more housing, especially worker housing to keep rents from rising disproportionately.”

Nicotra said his firm has long believed “the demand has far exceeded the availability of apartments in the city.”

That’s why “we have secured several prime locations within the city for future development of apartments,” he said.

Olympia has bought up three downtown properties for future plans, which include a 26-story apartment tower on State Street.

Before moving ahead with those plans, Nicotra said his firm was “sitting back and watching the success of 360 State Street” as a gauge of the market. The 32-story complex, which opened a year and a half ago, is now 88 percent filled, according to developer Bruce Becker.

Nicotra called it “unbelievable” how quickly renters snatched up Becker’s apartments.

“We see nothing but positive growth over the next few years,” he said.

[Stylo]

Interesting that it includes the surrounding towns too. I know Downtown New Haven and Downtown Milford have extremely high occupancy rates.

[anon860]

Not a surprise - nearby areas including NYC and Long Island have similarly low vacancy rates.

Rents are rising. Also see https://www.city-data.com/forum/conne...new-haven.html

[Arm&Hammer]

Hmmm looks like we need more towers LOL

[kidyankee764]

I don't mean to be a pessimist here, but perhaps this could mean that there are a lot of foreclosures?

[anon860]

I kind of doubt that - the foreclosure rate in CT and the New Haven area is lower than it is in many other markets nationwide.

Certainly, reduced homeownership (due to higher lending standards, reduced incomes, etc.) is a factor in decreased apartment vacancies nationally, however. This may be having a larger impact in the NYC area where housing is somewhat more costly.

[Arm&Hammer]

^ More New Yorkers are trying to move in the area... They need to start bringing more housing let the towers rise

[Jpierpont]

I meant to say area and not are.

[JayCT]

Originally Posted by kidyankee764

I don't mean to be a pessimist here, but perhaps this could mean that there are a lot of foreclosures?

Well part of it is that but also that more people need to be flexible in where they live. Because the job market is not strong, people may need to move quickly for to get a job. That means they would likely rent instead of buy. Also lending for purchasing is tighter than it use to be. The rates may be low but getting that mortgage is harder. On top of that there is a move to live in the cities again and new apartments have not been built in years. Since 360 State is doing so well, you will definitely be seeing more new apartments in downtown New Haven. Jay

[Stylo]

Originally Posted by JayCT

Well part of it is that but also that more people need to be flexible in where they live. Because the job market is not strong, people may need to move quickly for to get a job. That means they would likely rent instead of buy. Also lending for purchasing is tighter than it use to be. The rates may be low but getting that mortgage is harder. On top of that there is a move to live in the cities again and new apartments have not been built in years. Since 360 State is doing so well, you will definitely be seeing more new apartments in downtown New Haven. Jay

There's another high rise proposed for State Street on the opposite block of 360.