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/

Bronx Tenants Will Be First To Benefit From Timely Payment of Rents Being Reported To Credit Bureau

As we have previously reported, the City Comptroller Scott Stringer wanted to initiate a program that would encourage landlords and NYC property management companies to give tenants the ability to opt into allowing their rent payments be reported in order to boost their credit scores.  Well it looks like a pilot program will indeed start soon.  The program which is being being called "Making Rent Count" will begin with the eligibility of up to 600 tenants and 27 buildings in the South Bronx.   The placement of the pilot program in the South Bronx neighborhood  is of significance as up to forty percent (40%) of individuals living in the area never had a credit score or are attempting to re-establish their failing credit.

The Banana Kelly Community Improvement Association is a not for profit developer that owns the buildings involved in the pilot program.  They will report the timely rents to the credit bureaus should the tenants elect to participate.  Stringer stated “We’re facing an affordability crisis, and we all know how soaring prices and sky-high rents make life difficult for New Yorkers across the five boroughs. One of the hidden roadblocks to financial success is credit – and access to it. This innovative new program empowers tenants, helps level the playing field."

As we have noted, people with bad credit face enormous challenges with obtaining favorable financing or do not qualify at all for loans.  They also have to pay higher car insurance premiums and have difficulties obtaining jobs and housing if a credit report is needed.   Banana Kelly's President  Harold DeRienzo said “Too many of our residents and members are forced to pay inappropriate, even predatory, premiums for consumer goods and services that have become basic necessities in life.  These costs place our residents at a disadvantage in so many aspects of daily life – applying for an apartment, applying for a job, buying a cell phone, entering into service contracts, and the list goes on.”  He is hoping this new program will assist his tenants being upwardly mobile financially.

According to the release, Comptroller Stringer is also urging further steps in easing the affordability crisis with respect to housing.  His outline is as follows:

• Allowing all NYCHA residents to opt in to a credit reporting program. That could be done by expanding an existing pilot partnership NYCHA has with the Brooklyn Cooperative Federal Credit Union and Urban Upbound Federal Credit Union, which allows tenants to opt-in to report their rent payments to credit bureaus. That program could be scaled to the entire housing system.
• Exploring incorporating rent into its affordable housing programs by incentivizing and informing developers of affordable housing about ways to develop a rent-reporting program.
• Proactively using its Department of Consumer Affairs to develop credit building curriculums which assist renters considering opting into a rent reporting program.
• Implementing a number of credit related consumer protections, including adjusting credit scoring models so that credit checks undertaken by landlords on prospective tenants will not negatively impact credit scores.
• Passing legislation to require landlords who run credit checks on prospective tenants to share credit reports with the applicant and increase consumer credit education initiatives offered by the City.

 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/bronx-tenants-will-first-benefit-timely-payment-rents-reported-credit-bureau/