Recent Real Estate Headlines - Focus on NYC Rental Market

According to QuickFacts on census.gov, over 70% of Manhattan households rent.  It's not a far jump to see that the multi-family market plays a large role in the Manhattan real estate market.  So, there is plenty of coverage of the rental market - as well as the trading of rental buildings in the press.  


Articles followed the fluctuations of the rental market in New York - in the bubble, the crash, and the recovery.  First, rents were up, inventory was down.  Then, concessions were the norm, rents were down.  Now, concessions are disappearing and vacancy rates are plummeting.  The recent news from the NYC rental market focuses on the rising rents, and shrinking inventory.  A few sources also noted the fewer trades of multi-family buildings in the market.  


Some recent headlines include:

• Rents on the Rise Again from the WSJ.com.  Read more at http://on.wsj.com/ihAbmY [June 09, 2011]
• Manhattan Rents Still Headed Up, With No Sign of Stopping from Curbed NY.  Read more at http://t.co/e6wJjS9
• New York Experiences Decline in Transaction Volume; New Capital Comes to Market from Multi-Housing News.  Read More at http://j.mp/n3HX18

Headlines and other articles of interest

I dedicate time every day to reading industry news, both in industry publications and more general press.  After the jump, a summary of a few articles that have caught my attention this week:

Let there be light (or is it drawn shades for privacy?) along the High Line

The Real Deal reports the word "voyeuristic" popped up more than a few times in reviews describing the [High Line]'s coexistence with its architectural surroundings. 

Now, the flip side of the debate also appears...how to maintain privacy in a residence that sits at eye-level with a public park?  Do homeowner need to chose between light and privacy?  Will the proximity create a cachet like the maisonette on Park Avenue?  

Only time will tell....

Read the full article:  Privacy not on the amenities menu for some High Line residents | The Real Deal | New York Real Estate News

Finding the right apartment - finding a needle in a haystack?

The Wall Street Journal reported Skyward Move in Rents....


The bottom line:

• Manhattan rents were up 10.1%, the biggest average increase in rent since the end of 2006.
• Manhattan monthly rent for a one-bedroom apartment averaged $2,672 while monthly rent for a two-bedroom averaged $3,757.
• The Manhattan vacancy rate fell to 0.72% - the lowest vacancy rate on record since 2002.
• Just 11% of apartment transactions in New York last month included some type if concession, less than half of the 28% that did in June 2010.

Read the full article :  here

Development site sales, prices rise in northern Manhattan

Crain's New York Business RED ALERT: Development site sales, prices rise uptown

The Bottom Line: Demand for development sites is picking up in northern Manhattan.

*Better sites are now drawing bids ... nearly $79 per buildable square foot in the first half of 2011.

*Smaller multi-family units in Harlem seeing rents in line with peak levels prior to the recession.

Crain's NY | Home foreclosures down in the city... (but are they also up?)

A new article in Crain's NY discusses the recent foreclosure statistics for the NYC boroughs. While the number of new foreclosures fell, there were major increases in Manhattan as well as in co-ops citywide.


*The total number of new foreclosures in the five boroughs shriveled 56% during the second quarter - as compared to a year ago.
*During the second quarter, 66 homes in Manhattan were in foreclosure, more than double the number of foreclosures the same period a year ago. That total also marked a two-year high for the borough.
*While the number of new foreclosures fell from a year ago, it is worth noting that new foreclosures were up 16% from the first quarter of this year.


See Crain's for the full article:
Home foreclosures plummet in city | Crain's New York Business

West 123rd Street

West 123rd Street, a set on Flickr.

A picture tour of the buildings of West 123rd Street.

Big rise in rental charges for NYC apartments | Crain's New York Business

Big rise in rental charges for NYC apartments | Crain's New York Business

Good article on the current rental market conditions.

Some key data points:

*Manhattan's apartment vacancy rate was 0.72% in the second quarter

*Rental prices for studios and one-, two- and three-bedroom apartments increased 9.1%, 9.2%, 10.8% and 11.3% over the past year

*The average apartment rental remained on the market for 33 days, compared with 40 days last year

*The average rental concession was 1.2 months of free rent or its equivalent in the second quarter

*The average rental price increased 3.4% for tenants after concessions this year

Trade a little discipline for a lot of money - $90,975 worth!

This morning, as I returned to my business routine from a long holiday weekend, I read an interesting article in the NYTimes about home mortgages.


The article considered the benefits of making a mortgage payment every two weeks rather than one time per month.  The article looks at it from several different angles, but the basic concept is simple - and worth repeating for home-buyers looking for value:  

• If you pay a full payment once a month and your mortgage payment is $1000/month.  You repay $12,000 each year.  
• If you pay 1/2 a payment every two weeks, and your mortgage payment is $1000/month.  You repay $13,000 each year. 

You've paid an extra $1000 - or a FULL EXTRA PAYMENT EACH YEAR - by making 1/2 payment every 2 weeks.  The real benefit is what happens to that extra $1000.  Typically, it directly pays down the principal - which means you have less money that you need to pay interest on.  Because you have less interest to pay, you pay off the balance earlier.