The Rental Housing Market Is The New Combat Juggling

May 18, 2023

I can juggle. And because we all need yet another sport…

Did you miss last week’s Housing Notes? May 12 – Housing Is No Vacation: Stavanger Edition

But I digress…

NYC Rents Rise To New Highs As Lease Renewals Surge

I’ve been the author of the expanding series of Douglas Elliman market reports since 1994. During the pandemic era, the rental market reports have been one of the most sought-after research pieces because of the quick reaction to changes in market conditions versus the “for sale” market.

Bloomberg posted a multi-color chart using the report data on median rents in the city.

Elliman Report: April 2023 Manhattan, Brooklyn and Queens Rentals

______________________________________________________
MANHATTAN RENTAL MARKET HIGHLIGHTS

“Median rent reached a new high for the second consecutive month.”

– Net effective median rent and median rent reached new highs for the second straight month
– Concessions paid by landlords fell to their lowest level since November 2019
– Listing inventory expanded annually for the sixth time but remained more than ten percent below the decade average for April
– Non-doorman median rental price continued to see a more significant annual increase than the doorman median rental price
– Existing rental price per square foot outpaced that of new development
– Luxury median rent rose annually to the third highest on record
– Luxury listing inventory experienced a substantially lower rate of annual growth than the previous three quarters
– Approximately one out of six luxury rentals leased above the last asking price

______________________________________________________
BROOKLYN RENTAL MARKET HIGHLIGHTS

“Median rent rose to a new high, exceeding last August’s record.”

– Net effective median rent and median rent reached new highs
– New lease signings fell annually for the first time in three months
– Listing inventory expanded annually for the fifth consecutive month

______________________________________________________
QUEENS RENTAL MARKET HIGHLIGHTS

[Northwest Region] “All price trend indicators rose annually to new records.”

– Net effective median rent and median rent reached new highs
– New lease signings fell annually for the second time in three months
– Listing inventory expanded annually for the second consecutive month

For more, view the chart library.

The Challenges Of The Current NYC Rental Market Illustrated With A Dusting Of Broker Sarcasm

New Signed Contracts Took A Break In April

Across the four regions, new signed contract growth eased in April after a torrid pace of month over month gains since the beginning of the year. Perhaps the cumulative impact of rising rates, the banking crisis and economic uncertainty are having their day.

New York
Elliman Report: April 2023 New York New Signed Contracts

Florida
Elliman Report: April 2023 Florida New Signed Contracts

Colorado
Elliman Report: April 2023 Colorado New Signed Contracts

California
Elliman Report: April 2023 California New Signed Contracts

For more, view the chart library.

Condo Attorneys Are Trying To Bring Fannie Mae’s Blacklist Into Public View

After the Surfside condo building collapse in Florida a while back, Fannie Mae added requirements to ensure buildings were taking care of themselves which is a great thing. The problem at the moment, is that buildings don’t know whether they are on the list and neither do property owners and potential buyers. Fannie Mae simply won’t lend in those buildings.

I would think that market forces will incentivize buildings to be compliant.

Brick Underground broke the story: Freedom of Information Act request asks Fannie Mae to release its ‘blacklist’

Sinking San Francisco Penthouse Enters The Market

Penthouse Atop San Francisco’s Millennium Tower Asks $14 Million [WSJ]

I’ve been following the penthouse unit’s past transactions since it was discovered the building as sinking. Back in 2016 it was reportedly down by 16 inches and tilting 6 inches. Engineers have been working on a multi-million dollar solution to stabilize the building.

For appraisers, if it sells, the unit will be a comp for leaning buildings!

The photos are incredible.

Colorized Video of Manhattan in the 1930s

Gotta love this.

Manhattan in the 1930’s
by u/DTheDev in nyc

Getting Graphic

Charts of our own making

Apollo’s Torsten Slok‘s amazingly clear charts.

Kastle card swipe data charts

Remember that Kastle charts are overstating occupancy* because their pre-pandemic occupancy benchmark was 100% which is simply incorrect (*measures card swipe activity as a proxy for occupancy).

Appraiserville

By Now I Already Testified At The Second ASC Panel On Appraisal Bias

I’m still in DC, my second hometown. I grew up in Bethesda, Maryland, just across the line. If all goes according to schedule, I finished testifying for three hours by 1pm in front of the Appraisal Subcommittee. Supposedly this will also be on C-SPAN but not confirmed yet. It was! New link below.

May 19, 2023 Hearing on Appraisal Industry Issues [C-SPAN]

Venn Diagram: Swap “Engineer For “Appraiser”

OFT (One Final Thought)

We just came back from a cruise and I thought a size comparison with the Titanic was unfortunate…

Brilliant Idea #1

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– They’ll be juggling;
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– And I’ll not hit an iceberg.

Brilliant Idea #2

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See you next week!

Jonathan J. Miller, CRE, Member of RAC
President/CEO
Miller Samuel Inc.
Real Estate Appraisers & Consultants
Matrix Blog
@jonathanmiller

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