Housing in NYC Is Becoming More Affordable Amid Increased Wages and New Apartments

The Wall Street Journal is reporting that housing costs are taking less of a percentage of a household's monthly budget as the strong economy and the availability of newly constructed apartments make it more affordable for the majority of New Yorkers.  The information was compiled via survey by the U.S. Census Bureau that is conducted every three years.  The survey indicates that the surge of construction in the past few years and a strong economy in which the growth of jobs has outpaced the increase in rents are making things even manageable for lower income groups.

The survey also found a record 3.47 million housing units in New York City.  This is  an increase of 117,000 since 2011.  It is also estimated that an additional 35,000 rental apartments and 15,000 condominiums are due to open in 2018 and 2019.  Mark Willis, a fellow at NYU Furman Center states “Rising vacancy rates citywide are a sign that, overall, the housing supply is starting to catch up with demand, helping to relieve the upward pressure on housing costs."  Vacancy rates throughout the city has hit 3.63% which is the 3rd highest vacancy rate since 1965.  Vacancy rates in Manhattan was 4.73% which was the highest recorded in the last decade.

With respect to household income, NYC renters saw an increase of eleven percent (11%) over the last survey while rents rose  8.2%. For tenants in rent-stabilized apartments, incomes increased 7% while rents rose by 2.6%.  Despite all these positive signals, the city’s housing commissioner Maria Torres-Springer said that they city is still facing an affordability crisis and they will continue to strengthen rent laws as well as building and maintain existing affordable housing.

Landlord groups are hoping to remove Manhattan apartments renting for $2,000 or more from rent control.  Present law requires that rent control should be abandoned should the vacancy rates hit 5 percent.  Jack Freund, executive vice president of the Rent Control Stabilization indicated that the 5% standard is within the survey margin of error of the 4.73% vacancy rate Manhattan. Experts do not believe that the City Council will change any regulations with respect to rent control.

Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://www.blueharbourpropertymanagement.com/housing-in-nyc-is-becoming-more-affordable-amid-increased-wages-and-new-apartments/