The development of residential housing options downtown has met initial expectations but, rather than saying downtown housing has peaked, a study found that more development opportunities exist.
And, according to the study by the Buffalo Niagara Partnership and Buffalo Urban Development Corp., some issues need to be addressed.
“It’s very clear that more people want to live in downtown,” said Dottie Gallagher-Cohen, Buffalo Niagara Partnership president and CEO. “Overall, the market study tells the story of a healthy downtown market that has increased in population, and is becoming more diverse.”
The study, conducted during the past year by Real Property Research Group of Washington, notes what has been accomplished, also provides a road map to keep the residential-based development moving forward in an area that extends into the East and West sides along with slivers of the Delaware Avenue and Seneca Street.
The study comes with a call from some groups for inclusionary housing options and adjusting, or perhaps, limited some of the more successful incentive packages offered to developers.
Incentives should be bolstered, not reduced or restricted, the study notes.
We know what we have to do,” Gallagher-Cohen said.
Among the study’s highlights:
• Since 2010, downtown’s population has increased by 10.6 percent to 6,875.
• Between 2011 and last year, 1,065 rental units have been added to the housing inventory while 1,810 people have moved into the central business district.
• The current demand is for approximately 281 new residential units to be added annually.
• Downtown’s apartment vacancy rate is 4.2 percent, well below the national average of 5 percent.
• Average monthly rental rates for a two-bedroom, downtown apartment is $1,647.
• More than 55 percent of the proposed new downtown area apartments are targeting the “affordable” market place.
• Middle class income level residents have increased dramatically between 2011 and 2016, with the bulk of those living in the central business district having annual incomes ranging from $25,000 to $149,999.
“It proves that downtown is for all people, not just rich, white people,” Gallagher-Cohen said.
Minorities, including African-American, Asian and Hispanics, are among the leading demographic groups to move into downtown between 2011 and 2016.
Certain realities remain, including the need for public sector incentives like adaptive re-use policies and both state and federal historic tax credits as well as other initiatives such as the Buffalo Building Reuse Program and Better Buffalo Fund.
“None of the projects really pencil out unless there are some level of tax breaks and incentives,” Gallagher-Cohen said.
Looking forward for the next five years, the study paints an upbeat picture including:
• Enough of a demand to support developing at least 1,400 more apartments.
• Downtown’s residential population will continue to be both diverse and geared towards middle class apartment dwellers.
At the same time, the study warns that cutbacks or changes to Erie County Industrial Development Agency’s adaptive re-use incentive program or slices into the state and federal historic tax credit programs could derail downtown’s momentum.
“We have to be laser-focused,” Gallagher-Cohen said.
Source:
https://www.bizjournals.com/buffalo/...e-bad-the.html
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