Re: Symes / Solomon runoff

Posted by MDM on 2017/11/8 15:25:07
Quote:

thor800 wrote:

Except that the the development most likely wouldn't be affordable. Why would any developer want to rent for affordable rates unless thats the only way they could get a tax break - which has been the opposite case in JC



Why don't automakers only sell high end autos? Wouldn't they make more money if they forced everyone to by vehicles $50k+ in price?

The price of the apartment isn't what matters.. its the profit margin. If you can make $$$ renting 2 bedrooms in the $1,000 to $1,500 range, somebody is going to do it. The big developers go after the high end waterfront market. However, there are only so many people to fill those apartments.

Maintaining a profit margin means keeping units occupied. The nice thing about the lower / mid end market is that there is lots of demand. The tenants into living in an expensive tower on the waterfront generally aren't looking at renting out a unit in a 6 family apartment building in the Heights.

The problem is, people like myself and Brewster are barred by the R-1 zoning to provide apartments in that range. Because of the low density, you have to rent out the two apartments in a Bayonne Box at a really high rate to cover the taxes and mortgage.. It is really hard to make money on a two family. 4+ units is a lot easier due to the economies of scale (more units on a single lot.. cost per unit goes down).

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