Report Indicates that Airbnb Removes Available Housing and Increases Rents in NYC

A report by McGill University's School of Urban Planning shows a negative effect of Airbnb to residents of New York City.  The Report titled "The High Cost of Short-Term Rentals in New York City" and authored by a research group at McGill University and funded by a hotel union found that 45% of Airbnb listings were illegal.  This amount accounted for $435 million in revenue during the period of the report which was between September 2014 through August 2017.  Of further significance is that New York City  is that Airbnb has taken out of the market between 7,000 and 13,500 units of housing from New York’s long-term rental market.  This has had adverse effect on rent prices as median rents has increased $380 all throughout the city and $780 in Manhattan alone.

The study found that Airbnb has had a positive affect on gentrification in that 72% percent of the population in neighborhoods at the highest risk of Airbnb-induced gentrification across the city are predominantly non-white. According to the research there is a significant disparity on the income earners of using the short term rental marketing.  "Airbnb hosts are 5 times more likely to be white. In those neighborhoods, the Airbnb host population is 74% white, while the white resident population is only 14%. White Airbnb hosts in Black neighborhoods earned an
estimated $160 million, compared to only $ 48 million for Black hosts—a 530% disparity. "

Airbnb has gone on the record and has disputed the findings of the McGill report.  They state that their methodologies are flawed especially the amount of nights visitors rent to Airbnb guests.  They also say that Airbnb has created $3.5 billion in economic activity for the city and 2 million guests have used them.  It should be noted that under NYC law, it is presently illegal to rent out an entire apartment in a multi-unit building for less than 30 days. Homeowners can be punished with violations and fines as a result.  Many NYC property management companies have been proactive to the use of Airbnb by their tenants and have sent out notices to existing tenants of buildings indicating that they would pay rewards for information resulting in the use of short term rentals by other tenants.  It is of high priority to property management companies to curtail the use of Airbnb as penalties and fines would be given to the owners of the premises.

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/report-indicates-airbnb-removes-available-housing-increases-rents-nyc/

Sales Prices Increase in Upper East Side of Manhattan as Second Avenue Subway Line Opening Looms

The first three stations on the Second Avenue subway line should be opened by December 31, 2016.  The lines opening in the Upper East Side of Manhattan will be at East 72nd Street, East 86th Street and East 96th Street.  The long awaited subway lines which have been in discussion for over a century but finally began construction in 2007 will be a huge financial windfall for both property owners and businesses running along that line.  The project which is in the first phase has already cost $4.45 and is considered the first major expansion of the subway lines in more than a half century.

Recent reports have indicated that sales prices along the route has increased roughly 27% per year for the last 5 years.  The report also indicates that rental prices will soar a few hundred dollars per unit along the lines.  Many international clients seek to live in the area due to a reduced level of street activity and the quaintness of community.  It is uncertain to know what the renewed interest in the neighborhood will do the aesthetic.  Many believe that more restaurants will open and younger people will move into the area due to the ease of transportation.  Also developers will be looking into constructing new buildings in the area as well.  A recent report indicates that Mink Development is building a luxury condo building on East 96th Street and Second Avenue as one example.  The firm purchased the site, previously a parking garage, in 2014, for $24 million. They are knocking down the parking garage to construct a 75,000 s/f property that will have 48 units.

There clearly will will be new opportunities for NYC property management on the Upper East Side of Manhattan.  With the influx of new tenants as well as new developments there is a need for experienced property managers to serve the community and maintain its vitality.  Blue Harbour Property Management is a prominent NYC building management company that can fulfill the needs of both landlords and tenants.  If you are in need of property management feel free to contact us at 718-843-1185 or info@blueharbourpropertymanagement.com

http://www.blueharbourpropertymanagement.com/sales-prices-increase-along-second-avenue-subway-line-opened-end-year/

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