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What would this do to the market and the overall cost of rent if an organization increased the supply of near-Manhattan area housing and built:
- Fifty, 30 floor apartment buildings (600 units per building, totaling 30,000 units)??
- With the average cost of a unit being $700/mo.
- Background checks being required to help keep out the criminal element.
- This development being mainly marketed/targeted to hipsters&expats (since they're the main ones driving up NYC real estate).
How much would rents in NYC go down collectively (since the supply would be notably increased)?
What would this do to the industry?
Could it ever happen (some possible areas being that giant undeveloped swamp area behind Union City+Secaucus)?
It was just an idea that came across my mind, lol.
Last edited by LongIslandPerson; 12-28-2012 at 07:51 AM..
What would this do to the market and the overall cost of rent if an organization increased the supply of near-Manhattan area housing and built:
- Fifty, 30 floor apartment buildings (600 units per building, totaling 30,000 units)??
- With the average cost of a unit being $700/mo.
- Background checks being required to keep out the criminal element.
How much would rents in NYC go down collectively? Since the supply would be notably increased.
It was just an idea that came across my mind, lol.
The project will never see the light of day. Other landlords, real estate owners, etc will never allow a true affordable housing project in Manhattan or in the city in general.
The project will never see the light of day. Other landlords, real estate owners, etc will never allow a true affordable housing project in Manhattan or in the city in general.
I 100% agree.
I was wondering more about the economic impact/housing industry impact.
If it did happen, hypothetically speaking, what would the impacts be.
What would this do to the market and the overall cost of rent if an organization increased the supply of near-Manhattan area housing and built:
- Fifty, 30 floor apartment buildings (600 units per building, totaling 30,000 units)??
- With the average cost of a unit being $700/mo.
- Background checks being required to help keep out the criminal element.
- This development being mainly marketed/targeted to hipsters&expats (since they're the main ones driving up NYC real estate).
How much would rents in NYC go down collectively (since the supply would be notably increased)?
What would this do to the industry?
Could it ever happen (some possible areas being that giant undeveloped swamp area behind Union City+Secaucus)?
It was just an idea that came across my mind, lol.
How much sq feet are these apt? Even if these apartments are size of closet demand will still increase along with price.
How much sq feet are these apt? Even if these apartments are size of closet demand will still increase along with price.
lol, I didn't put that much thought into it. I just thought of it 20 minutes ago.
I would say all apartments would be towards the smaller side, since that's enough to satisfy the overwhelming majority of hipsters (who mainly just wanna be close to Manhattan) and live an urban lifestyle.
Ranges from 1bdr to studio apartment and the unit average would be $700. Studio's costing $600/mo and 1 bdr costing $800/mo.
They would definitely be notably below market rate.
Last edited by LongIslandPerson; 12-28-2012 at 08:20 AM..
Firstly at $700/apartment at affordable concept set by goverment at 30% of income, the apartments would have to rent to families making $28,000.
Or are you supposing a free for all type lottery open to anyone regardless of income?
But then if you say "average rent of $700/month," one must suppose a range of rents, perhaps extending from $0 to market price. I don't believe it could be completely private and survivable at an average rent of $700.
So then there must be taxpayer support and you are reduced to NYCHA, Mitchell Lama, or some variant involving low taxes and subsidized mortgages.
But yeah, adding 30,000 units HAS to lower market rents but in perspective:
Quote:
NYCHA is the largest public housing authority in North America. NYCHA's Conventional Public Housing Program has 178,895 (February 1, 2012) apartments
the efffect would be like a 16% increase in the size of NYCHA, dramatic but probably not Earth shattering.
Also if "near Manhattan" means Long Island, Weschester and Newark, the effect might be slight. If it means Downtown Brooklyn or Sunnyside Queens the effect would be more dramatic.
Probably Robert Moses dealt with this very kind of reality on a day-to-day basis.
Firstly at $700/apartment at affordable concept set by goverment at 30% of income, the apartments would have to rent to families making $28,000.
Or are you supposing a free for all type lottery open to anyone regardless of income?
But then if you say "average rent of $700/month," one must suppose a range of rents, perhaps extending from $0 to market price. I don't believe it could be completely private and survivable at an average rent of $700.
So then there must be taxpayer support and you are reduced to NYCHA, Mitchell Lama, or some variant involving low taxes and subsidized mortgages.
But yeah, adding 30,000 units HAS to lower market rents but in perspective:
the efffect would be like a 16% increase in the size of NYCHA, dramatic but probably not Earth shattering.
Also if "near Manhattan" means Long Island, Weschester and Newark, the effect might be slight. If it means Downtown Brooklyn or Sunnyside Queens the effect would be more dramatic.
Probably Robert Moses dealt with this very kind of reality on a day-to-day basis.
Something like this would definitely be the move of a public sector entity, similar to NYCHA BUT NOT NYCHA. Since NYCHA has their own guidelines/goals that would not go in-sync with the goals of a project like this. A private sector organization would never ever ever do this because your not maximizing profits by creating affordable housing that could easily sell for significantly more.
As for near-manhattan, one great example that I named earlier was the giant area of swampland west of North Bergen and Union City. This is very close to NYC but yeah, I know that there will have to be some pretty major infastructure upgrades to make this area even more accessible to Manhattan. This is really the only region where I can even picture this kind of project occurring, it would definitely not occur in a suburb like Long Island or deeper in Jersey since the NIMBY'ers would shoot that down in an instant (and rightfully so since it doesn't belong in a very suburban area).
This is very close to NYC but yeah, I know that there will have to be some pretty major infastructure upgrades to make this area even more accessible to Manhattan.
Sam Lefrak managed to pull off something similar in Newport, Jersey City. It was a wasteland of abandoned rail yards but the location right on the Hudson and atop the PATH and the HOLLAND TUNNEL was golden.
Of course his dream was market rents, condominiums, offices, a big mall and just a smattering of "affordables" for which he was WELL compensated by the City. I make it be about 7,000 apartments by now with a "right" to build up to a total of 9,000.
Of course, almost EVERYONE works either in Manhattan or in Downtown Jersey City.
Here's a more likely scenario:
The financial markets will topple again, and nobody will have the stomach to bail them out AGAIN, and 30,000 people will LEAVE New York creating downward pressure on market rents and sales prices comparable to the creation of 30,000 new apartments.
more people from jersey would move there
than anyone else who wants to live in ny.
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