Re: Symes / Solomon runoff
Posted by JCGuys on 2017/11/8 19:44:11
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).
Thank you MDM!!
I always get really frustrated when I hear people complain about the lack of affordable housing but then also protest new development or a zoning change that would encourage more units to be built.
FHA will finance as a single-family mortgage up to four units. If we were building more 3 and 4 unit buildings instead of the Bayonne Boxes, it would provide twice as many homes for families, at lower costs as you stated, and also serve as a retirement nest egg for a homeowner that can live in one of the units while getting a nice rental stream from the others.
Allowing 3 or 4 units in more parts of the city is the only way things will be kept affordable.
JFK, Summit, Central, Palisades could all probably see more intensification then they have now, but the Yvonnes of the city don't care about affordable housing than others - only self interests like the availability of parking.
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