NAR Study Show Millennials Lead All Generational Purchasers Relying On Real Estate Agents For Assistance

The National Association of Realtors (NAR) recently released the outcome of a study done named Home Buyer and Seller Generational Trends.   The report indicates that millennial home purchases increased over the year and constraints hampered many from leaving their parents homes.  Thirty six percent (36%) of all home purchasers were made by millennials leading all generational sects.  This was the fifth year in a row that the generation segment has led the survey.  Although most segments relied heavily on real estate agents for assistance in the purchase or sale of homes, ninety percent (90%) of all millennials were the most likely to purchase a home through a real estate agent.

The survey which evaluates the generational differences of recent home buyers and sellers found that millennial buyers prioritize living close to friends and family over a home’s location and proximity to schools.  Thirty six percent (36%) of all sales were made by millennials over the past year.  This was an increase of two percent (2%) over the previous year.  Gen X buyers ranked second 26 percent, a decrease of 2 percent (2%) and followed by younger baby boomers eighteen percent (18%) and older baby boomers at fourteen percent (14%).

NAR chief economist Lawrence Yun states market conditions are hampering millennials from further gains in homebuying.  Particularly steep competition from low inventory and increased purchase prices are affecting advancement.

"Realtors throughout the country have noticed both the notable upturn in buyer interest from young adults over the past year, as well as mounting frustration once they begin actively searching for a home to buy.  Prices keep rising for the limited number of listings on the market they can afford, which is creating stark competition, speedy price growth and the need to save more in order to buy.  These challenging market conditions have caused – and will continue to cause – many aspiring millennial buyers to continue renting unless more Gen Xers decide to sell, and entry-level home construction picks up significantly.”

Another interesting conclusion from the survey is that younger boomers were the most likely to purchase a multi-generational homes reciting that the main reason being they would like to purchase for their adult children to live at home.  They also took into consideration of their parents living with them.  The same went for Gen X purchasers as  what was found was a huge jump (over 10% increase in both categories) in the reason for the purchase was for their adult children (35%) and parents living with them (30%).

All generation segment continue to use real estate professionals in drove in order to secure a transaction.  As noted earlier,  90 percent, millennials were the most likely to purchase a home through a real estate agent. Overall, at least 84 percent in every other generation worked with an agent to close real estate transactions.

"On the seller side, Gen X and older boomers were the most likely to use an agent (91 percent), followed closely by millennials (90 percent) and younger boomers (88 percent). The near universal use of an agent to sell a home helped keep for-sale-by-owner transactions at their lowest share ever for the third straight year (8 percent)."

 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/nar-study-shows-millennials-leads-all-generational-purchasers-relying-on-real-estate-agents-for-assistance/

NYC Investment Sales Down Almost Forty Percent; Bronx Only Borough With Higher Sales

The Real Estate Board of New York (REBNY) published their Investment Sales Report for the Second Half of 2017 and it shows that real estate investment sales continue to nosedive.  Investment sales have now fallen since the first half of 2015, when New York saw $37 billion in real estate sales. Sales have fallen on every report since 2015 except one period for the second half of 2016.  The report indicates that the total monetary value for all recorded sales was $17 billion throughout the city which is a 37 percent decline compared to the second half of 2016. The total number of transactions also draw a drop of 19 percent year over year.  The only borough that saw a positive investment with respect to monies spent was the Bronx where investors spent $1.5 billion in the second half of 2017 where $1.4 billion was spent in 2016 second half.

Manhattan investment saw a considerable drop as sales decreased 40 percent to $10.1 billion in the second half of 2017 from $17.0 billion in the second half of 2016.  Also of note, transactions decreased 26 percent from 2016.  The report shows also that the average price per square foot of office properties Manhattan declined 12 percent to $823 from $930.

Brooklyn sales for the second half of 2017 dropped 27 percent to $3.2 billion from $4.4 billion in the second half of 2016. The amount of transactions decreased 18 percent to 783 in the second half of 2017 from 954 in the second half of 2016. The value of Brooklyn investment sales transactions accounted for 19 percent of NYC total sales.

Queens investment sales dropped 46 percent from the same period of the second half of 2016.  Total amount spent was $1.9 billion for the period.  There were 18 percent fewer transactions in the second half of 2017, 534 investment sales, compared to 649 in the second half of 2016.

Staten Island saw sales drop 59 percent or $203 million.  The number of transactions completed in the borough declined 30 percent to 190 compared to 273 in the second half of 2016.

Although the report didn't come out totally positive, the outlook still looks upbeat according to the President of REBNY John Banks.

 “The current demand and value of Bronx properties, as seen in our most recent New York City Residential Sales Report, carried over to investment property trades in the second half of 2017.  While the pace of completed transactions lagged citywide in 2017, investors continue to show interest in income-producing properties across the five boroughs.”

 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/nyc-investment-sales-down-almost-forty-percent-bronx-only-borough-with-higher-sales/

NY Has Most Apartments Under Construction Nationwide; NYC Remains Alluring to Renters As Economy Grows

GlobeSt.com is reporting that New York has more than 60,000 apartment units under construction and that’s the most out of any city that CoStar Group has been tracking nationwide.  CoStar is a provider of information, analytics and marketing services to the commercial real estate industry in the United States founded in 1987.  In an in-depth interview with CoStar Group analyst Lauren Baker many interesting tidbits of the state of New York City apartment renting came into light.  CoStar reports that the since the economy is growing, we should see a healthy rental market for years to come.  Here is some highlights of the interview:

“People want to live where they are working, so office construction drives residential properties, and all of these companies want to be in Manhattan,” says Baker. “Highly educated, younger people, 24 to 35-year-olds with a bachelor’s degree are moving into Manhattan.” In contrast, the outer areas in the state of New York have been decreasing in population.

The financial sector accounts for more that one-quarter of total wages paid and there is expansions by private equity investors, M&A and hedge funds.  The growth in the financial sector has been higher that the national average however they have been seeing some of the bigger banks still laying off employees and reducing bonuses.  However they do believe that with the profits of the six largest US banks substantially growing with deregulation assisting there may be a greater jump in the sector.  

Media and technology will be the stimulus of the city’s future economic growth according to CoStars NYC 2017 multifamily market report as it as been growing for the last 3 decades. Eighty six percent of tech job are in Manhattan but firms are beginning to set up in Brooklyn and Queens as well.  As more people are moving in these industries we are seeing more units being built in places like Long Island City located in Queens and Brooklyn.  More than 8,000 housing units are under construction in Long Island City which is the most in any submarket in the US according to Baker.  She also says “There’s a ton of multifamily units being constructed currently, especially in the outer boroughs.”

The outer boroughs offering lower prices, larger apartment sizes and more amenities.
At the end of the day, NYC will remain an attractive area for renters to be moving to.  Baker states “New York is New York. It’s not going anywhere. People want to live here. It’s proven time over time. It doesn’t matter how many units are built. People want to live here at the end of the day.”

 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/ny-apartments-construction-nationwide-nyc-remains-alluring-renters-economy-grows/

New Legislation In Reforming Scaffold Law Introduced As Advocates Hit NY Capitol

New legislation was introduced in Albany to reform what many consider the antiquated Scaffold Law in Albany as part of the Scaffold Law Reform Day on February 15, 2018.   The Scaffold Law was originally set forth in 1885 in order to protect construction workers injured in work-related accidents.  The law placed absolute liability on the property owner and construction company.  This means that the worker's negligence was not taken into account when limiting damages and percentage of fault.  It was an assurance of worker's compensation before such laws were in place in New York State.
A union of businesses and trade organizations have gathered to form a group called Scaffold Law Reform.  They gathered in Albany on the 15th for what they deemed Scaffold Law Reform Day.  Their goal was to  "urge legislators and Governor Andrew Cuomo to fix the only-in-New York Scaffold Law, and highlight the law’s impact on taxpayers and local governments".  According to the organization's website they cite the following as what New Yorkers pay for as a result of the Scaffold Law

 "The Scaffold Law costs taxpayers $785 million annually. 
– The Scaffold Law is estimated to add $200 – $400 million in additional costs to the construction of the new Tappan Zee Bridge.
– Local governments pay higher costs for capital projects, whether the work is done directly or through private contractors. For example, liability costs on one joint NY-NJ bridge projects are more than double on the NY side (see graph at right).
– More than half of the top 30 highest settlements resulted from Scaffold Law claims, and of those, 25% were against public entities. 
– The Scaffold Law adds as much as $10,000 to the cost of building a new home. 
– In 2014, the New York School Construction Authority’s (SCA) insurance costs soared to $240M because of the scaffold law, nearly triple that of the previous year, and no guarantee of coverage after 2014.
– The SCA’s increased insurance costs are equivalent to 8-10 new schools over a 3 year period. 
– Higher insurance costs for the SCA jeopardize the future of their Owner-Controlled Insurance Program, which provides insurance to over 800 M/WBE firms. Without this program, hundreds of M/WBEs may be put out of business.
– According to many disaster relief groups, the Scaffold Law has severely impacted reconstruction after Superstorm Sandy"

The impact to New Yorkers has also set legislators into action.  On the same day of the the gathering, a new proposal was introduced by Assemblyman John T. McDonald.  The proposal, which can be read here would change the standard from absolute liability and introduced contributory negligence when determining fault and damages.  The idea has been gaining momentum in the State as several influential periodicals have recently wrote about how the scaffolding law negatively impacts business in the State.

Mr. McDonald said this about the legislation he has introduced

"Safety is ultimately most important, which is why the reform we propose would simply make liability proportional to fault and would not weaken the law's safety provisions. By doing this, we are applying the same standard to every other type of liability throughout New York and we preserve the right for injured construction workers to sue, because we recognize the unique and dangerous nature of their work. We believe that proportional liability, when included in underwriting insurance, will lead to a reduction in the high insurance costs which we must hold insurance companies accountable for. In fact, according to a Cornell study peer reviewed by the Transportation Research Board of the National Academies of Science Engineering, and Medicine, "absolute liability" may actually increase the risk of work site accidents. Fixing the law would not only lower construction costs — which would allow firms to allocate more funds to hiring and compensation — it would actually create a safer work environment for all.

As lawmakers we must work together to solve problems and move this state forward. This is why we have decided to reach across the aisle and we stand ready to work with the governor and all of the stakeholders to fix this unjust and costly liability law. With the state budget currently under discussion, Scaffold Law reform should be a priority for all involved parties as we strive to make our state a more affordable place to live, with a friendlier business environment and more opportunity for our men and women in the labor force."

It should also be noted that New York is the last State to have the absolute liability as the standard since Illinois changed their laws in 1995.

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/new-legislation-reforming-scaffold-law-introduced-advocates-hit-capitol/