The Rental Housing Market Is The New Combat Juggling
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
“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.
Elliman Report: April 2023 New York New Signed Contracts
Elliman Report: April 2023 Florida New Signed Contracts
Elliman Report: April 2023 Colorado New Signed Contracts
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.
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).
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…
Size comparison between the Titanic and a Modern Cruise Ship pic.twitter.com/4jZj69KuL1— World Of History (@UmarBzv) May 16, 2023
Brilliant Idea #1
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- They’ll be juggling;
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Brilliant Idea #2
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See you next week!
Reads, Listens and Visuals I Enjoyed
- New York City is sinking due to weight of its skyscrapers, new research finds [The Guardian]
- N.Y. Today: Celebrating an iconic apartment building [NY Times]
- Sam Zell, Real Estate Billionaire, Dead at 81 [Commercial Observer]
- Why Wealthy Homebuyers Are Flocking to Puerto Rico [Wall Street Journal]
- Millennium Tower: Sale of $14 million penthouse is first huge test for S.F.’s famous leaning building [SF Chronicle]
- Freedom of Information Act request asks Fannie Mae to release its ‘blacklist’ [Brick Underground]
- WSJ News Exclusive | Penthouse Atop San Francisco’s Millennium Tower Asks $14 Million [Wall Street Journal]
- The "return to the office" won’t save the office [VOX]
- A problem for the housing market: People won’t quit their cheap mortgages [Washington Post]
- Mortgage Fees, (Seriously), Spurred Outrage on TikTok. Here’s Why. [NY Times]
My New Content, Research and Mentions
- Manhattan rents reach another record high [Fox Business]
- Rent in Manhattan hits record high for second month in a row [CBS News]
- Rent Prices Hit New Record High Prices Across These NYC Boroughs [NBC New York]
- Debt Deluge: The Bloomberg Open, Americas Edition [Bloomberg]
- What’s Trending Today: Heat Wins Game 1, Disney Bans Visitors After Fight, Athletic Wear Chemicals [Bloomberg]
- NYC’s Record-Breaking Rents Squeeze Tenants Across Boroughs [Bloomberg]
- Manhattan and Brooklyn home sales ease, falling in line with national trends [Crain's New York]
- Record-Breaking Prices Hit NYC’s Rental Market. This Is A Bad Sign For US [Daily Caller]
- NYC rents reach ANOTHER record high for second month in a row [Daily Mail]
- Manhattan rents reach (another) record high [Albany Herald]
- Hamptons Home Sales Decline As New Listings Rise [The Real Deal]
- Manhattan rents top all-time high at more than $4,200 per month [NY Post]
- Manhattan rents hit new records for the second month in a row and many tenants are staying put [The Real Deal]
- U.S. Rents Growing at the Slowest Rate Since the Start of the Pandemic [Mansion Global]
- Manhattan’s April Rent Tops March’s Record [The Real Deal]
- New York Rent Reaches a Record High [Investopedia]
- Real Estate Market Plummets In Palm Beach County [BocaNewsNow]
- Forget Brickell. Luxe condo building going up in Fort Lauderdale with million-dollar price tags [Miami Herald]
- City sees record-high rents across the board for April, report says [Crain's New York]
- Markets latest: Housing data, jobless claims and banking regulators on the Hill [CNN]
- Manhattan rents reach (another) record high [CNN Business]
- 7 ways to compete with an all-cash offer [Brick Underground]
- WSJ News Exclusive | Billy Joel Is Movin’ Out of His $49 Million Long Island Mansion [Wall Street Journal]
- Billy Joel Is Movin’ Out of His $49 Million Long Island Mansion [Mansion Global]
- Boom for Hamptons summer rentals is cooling down [Daily Mail]
Recently Published Elliman Market Reports
- Elliman Report: Florida New Signed Contracts 4-2023 [Miller Samuel]
- Elliman Report: Colorado New Signed Contracts 4-2023 [Miller Samuel]
- Elliman Report: California New Signed Contracts 4-2023 [Miller Samuel]
- Elliman Report: Normandy Isles/Normandy Shores New Signed Contracts 4-2023 [Miller Samuel]
- Elliman Report: New York New Signed Contracts 4-2023 [Miller Samuel]
- Elliman Report: Manhattan, Brooklyn & Queens Rentals 4-2023 [Miller Samuel]
- Elliman Report: San Diego County Sales 1Q 2023 [Miller Samuel]
- Elliman Report: Orange County Sales 1Q 2023 [Miller Samuel]
- Elliman Report: Malibu + Malibu Beach Sales 1Q 2023 [Miller Samuel]
- Elliman Report: Los Angeles Sales 1Q 2023 [Miller Samuel]
Appraisal Related Reads
- Home Sales are Falling in Cuyahoga County While Prices Continue to Increase [Cleveland Appraisal Blog]
- Clean-Slate Laws Could Dispatch Felons to Borrowers' Homes [Appraisers Blogs]
- Pivoting when the housing market changes [Sacramento Appraisal Blog]
- Phil Welcomes Mark Calabria! [Voice of Appraisal]