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Good, the market is working the way it should. Maybe with all the new construction, the vacancy rate will go over the threshold where rent regulation gets phased out.
Good, the market is working the way it should. Maybe with all the new construction, the vacancy rate will go over the threshold where rent regulation gets phased out.
Likely will not as developers/landlords will continue offering concessions and or other means to get units rented.
What it does bode potentially ill for are all those 80/20 building both in construction and already completed. VIA 57 is widely advertising a 20% brokers discount, this tells me that they are having troubles filling market rate apartments.
All this with plenty of projects still under construction including the vast Hudson Rail Yard developments.
The numbers that I heard, and this was a few month ago, so the clock has been ticking, is that 40,000 new rental units are going to come on line in the next two years. Now in market of almost 2.2 million rental units, that may not be as much as it sounds like. But there all crowded into the upper end of the market. So filling them may be difficult unless the landlords get real on the asking rents.
I use to show that landlords/management companies apts often and they are way overprice to begin with for alot of the areas. Even 4yrs ago they were overpriced and now its catching up to them and others.
Isn't this sort of how the market is supposed to work?
For market rate, yes, but the problem is NYC hasn't seen this much new construction of such units in a long time.
Second worry large amounts of the current administrations efforts at low or "affordable" housing rests to some extent on the backs of the creation of upper income housing. If that market softens to the point things slow down in terms of new construction it puts the whole affordable housing scheme at risk.
The City has and plans to rezone vast areas for building new housing based upon the fact some portion of it will be market rate renters willing to subsidize lower income. You don't built the former then where will the latter be?
Aside from all this developers/landlords have bills to pay. Debt was taken on to build these buildings and it needs servicing.
IMHO main issue with much of this market rate new housing is besides it being dear for what one gets, the areas often either lack amenities and or they are crowded. Schools are top of that list.
Quite frankly the NYC pubic school system is a mess and pre-k through 6 largely depends upon zoning. It comes as no surprise areas with highly rated public schools are highly desirable. Being able to send one's children to a good local public elementary school at least takes the edge off the vast sums paid in rent.
However much of this new developments are in areas with poor schools, none or are fast becoming packed. Parents are looking at the rents wanted and doing the sums; in a good number of cases it simply makes more sense to buy and move to the suburbs. This is becoming more and more true for the so called "middle class" being priced out of Manhattan and the better areas of the boroughs.
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