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Re: Gentrification spreads west to Newark
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Home away from home
 
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15% off doesn't seem that outrageous -- or atypical, especially during the winter. The entire rental market got a little hot, and landlords all over the area are cutting deals. That could change in just a few months.
Posted on: 2017/2/7 3:49
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Re: Gentrification spreads west to Newark
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Home away from home
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People have been saying things like this for years, but demand hasn't dropped much. There are close to 20 million people in the NYC metro area. The population grows by almost 50,000 per year. The median household income in 07302 is $98k, and probably rising. Developers have lots of money on the line, so they usually pay attention to changes in housing stock, population shifts, demographics, changes in interest rates and credit markets, and so forth. Whoever is building in Newark is taking a risk, but not a blind risk. Sure, they can misjudge the market. However, seeing a bubble at every turn, and assuming that every change precedes another huge crash, is another way to misjudge a market. Especially since this area's market did very well overall after the last big crash....
Posted on: 2017/2/7 3:39
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Re: Gentrification spreads west to Newark
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Home away from home
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Most of the units in these buildings are going for nowhere near those crazy advertised rents. I explained in another thread how I signed a lease at a 15% discount from the advertised rent ($800/month cheaper than advertised) about a month ago. I looked at several other buildings near Grove Street and in Hoboken and almost all were offering similar incentives while advertising rents that seemed very high for the neighborhoods. A leasing agent at a building in Hoboken that had units available at substantially lower advertised rents than others explained to me that the developers of these newer buildings need to show certain rent numbers to make investors happy, but they don't need to (or have found ways around having to) reveal the incentives included to their financiers. So, the need to flash large numbers in front of their creditors is why they have very high list rents on their apartments but so many units are leasing with multiple free months' rent included, making them significantly more affordable than the ads would have you believe. Alot of the buildings have subsidies from the state and city, and financing has been cheap, but at the end of the life of some of these buildings' loans, the owners may default if they can't actually meet the numbers they need to pay off or refinance them (alot of the buildings have loans that mature at the 10-year mark).
Posted on: 2017/2/7 2:19
Edited by jcwalkingman on 2017/2/7 2:34:28
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Re: Gentrification spreads west to Newark
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Home away from home
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Erm... pretty much everyone who moves into or lives in JC, and commutes to NYC. Which is why JC is gaining in population. And as someone who has experienced many different public transportation systems? PATH is not that bad. A lot of systems in major cities don't even run 24 hours (SF, Boston, London, Paris etc) Quote: If public transport was greatly improved and modernised with more options across the Hudson, be it under or over it then expect crazy sale and rental prices bordering the Hudson and Manhattan and any side of it. Erm... DTJC and Hoboken already have fairly high housing prices. JSQ, Harrison, DT Newark are next. It's probably not going to slow down, despite the perpetual hue and cry of BUBBLE!!!! Hence the OP's question. Quote: If public transport was 'gentrified' too, and it was 'comfortable' for a 1 hour commute, we would have more affordable housing in our outer suburbs and people would have better options to housing. Many NJT trains are quite comfortable; the newer double deckers are pretty sweet. The real issue there is just starting to be felt, namely that Amtrak's tunnels (which NJT uses) don't have enough capacity, and are in dire need of maintenance. There are also lots of bedroom communities that are within 1 hour of NYC via NJT/LIRR/MN. Some are affordable; some are not. Quite a few are adding housing, especially right next to the train lines. There's quite a bit of that long the M&E line. More to the point, you don't seem to quite understand how supply and demand works. As demand in suburbs rises, the tendency is for prices to increase, not decrease. E.g. when the NJT Midtown Direct line came online, prices in towns like Maplewood and South Orange went up, not down. It's usually more difficult (or at least, more expensive and less efficient) to add housing in suburbs than urban areas. Quote: Basically, our city planners are suffering from tunnel vision to only accommodate the wants of developers and not the end users ... once again it's our politicians that are failing us and often enough, we hear how they get financial kick-backs from the same! Yeah, not so much. Mayors of Newark and Jersey City don't have unilateral control of public transportation in the area. City planners were also the ones who implemented the HBLR -- and it was city residents who fought it bitterly, forced it to slow down etc. Developers do often get their way. However, refusing to build will cause its own problems, including exacerbating issues of affordability. E.g. San Francisco and much of the Bay Area shuts down development, and the result is that rents and home prices are through the roof; working- and middle-class people are shut out; commutes have gotten crazy, despite very good regional transport systems (BART, MUNI). And of course, it's not like suburban politicians are squeaky clean.
Posted on: 2017/2/7 2:18
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Re: Gentrification spreads west to Newark
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Newbie
 
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2016/3/23 1:43 Last Login : 2017/8/18 19:32 From Hamilton Park
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We already are. Curbed NYC Rental Market And with thousands more units coming online this year it will only increase. And the price decreases are also masked by increasing concessions like 2 months free rent, etc.
Posted on: 2017/2/6 22:16
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Re: Gentrification spreads west to Newark
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Home away from home
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2014/9/19 1:29 Last Login : 2020/3/12 17:59 From Hamilton Park
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Ha! I walked into that one! Completely take your point. What struck me listening to this is that DTJC, JSQ, Harrison, Fort Lee, Hoboken and Union City are all competing to attract NYC refugees to move to their cities. On the other side of the water, Bushwick, Flatbush, Bed-Stuy are all trying the same thing. There is a finite number of folks that aren't rich enough to pay high Manhattan or bougie Brooklyn rents (let's call it $3,400 a month+) but making sufficient income to think that $2,300 is a fair price to pay to live in a high rise studio in DTJC, or $2,000 to live in a big loft in Newark. If all these neighborhoods and municipalities are clamoring for the same economic cohort and collectively bringing 5,000+ units to market every year, just makes me wonder whether rental supply at these price points is going to eclipse renter demand at the coming years. I've no dog in the fight either way, but when even humble Newark is trying to get in on the action, just makes me think that the situation may be heading for something of a tipping point.
Posted on: 2017/2/6 21:21
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Re: Gentrification spreads west to Newark
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Home away from home
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2006/11/13 18:42 Last Login : 2022/2/28 7:31 From 280 Grove Street
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Another cause to the crazy rental prices and high density multi-level inner city developments is public transport. Who in their right mind wants to be squashed into a path train or sardined into a bus to get to Manhattan?
If public transport was greatly improved and modernised with more options across the Hudson, be it under or over it then expect crazy sale and rental prices bordering the Hudson and Manhattan and any side of it. If public transport was 'gentrified' too, and it was 'comfortable' for a 1 hour commute, we would have more affordable housing in our outer suburbs and people would have better options to housing. Basically, our city planners are suffering from tunnel vision to only accommodate the wants of developers and not the end users ... once again it's our politicians that are failing us and often enough, we hear how they get financial kick-backs from the same!
Posted on: 2017/2/6 21:15
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My humor is for the silent blue collar majority - If my posts offend, slander or you deem inappropriate and seek deletion, contact the webmaster for jurisdiction.
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Re: Gentrification spreads west to Newark
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Home away from home
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Real estate price high? In the NYC metro area? What fresh hell is this?!?  Real estate has always been nuts in the metro area. I'm also guessing that Newark loft offers a lot more square footage than that studio in the Morgan. Keep in mind that wages in the NYC area are much, much higher than in many parts of the US. An annual wage of $50,000 in NYC is comparable to a wage of $20,000 in Cincinnati. Housing is often a big part of that equation, as housing is 80% cheaper in Cincinnati. As to gentrification, there isn't much of a solution to that problem for Newark, since it's already underway, and over 70% of households are renters (about the same as JC). The best the city can hope for is forcing developers to build affordable units.
Posted on: 2017/2/6 20:53
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Re: Gentrification spreads west to Newark
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Not too shy to talk
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Yes, rental prices are crazy. It's spurred by the fact that is very difficult to buy a house/condo/etc., especially with prices so high and the strict credit requirements that came after the mortgage crisis.
I don't mean to be political, but the fact that our new president increased the FHA PMI premiums does not help. FHA loans for first-time buyers are great, however, the PMI insurance that is required is very costly and is not tax deductible which can again, make home ownership unattainable. Unless one is making a large income, shelling out this much for a monthly rent payment makes it very hard to save money for a down payment.
Posted on: 2017/2/6 20:37
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Gentrification spreads west to Newark
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Home away from home
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2014/9/19 1:29 Last Login : 2020/3/12 17:59 From Hamilton Park
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A gentrification story on WNYC today caught my attention - about Baraka's plans to revitalize the Ironbound with a new Whole Foods, Barnes & Noble and a high-line inspired park.
Aside from being the paint-by-numbers report on how new investment brings in more affluent residents at the cost of pushing out poorer existing residents that we've all read a hundred times before, the piece does not mention the changes and new construction taking place further down the PATH toward Manhattan. I think it is nuts that a building like The Morgan on Marin Blvd is asking up to $2,500 for a studio apartment, but when I hear a loft in downtown Newark is asking $2,000, suddenly its not DTJC that seems so absurd, but the entire rental situation throughout the NYC metro area...
Posted on: 2017/2/6 19:45
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