Happy Friday folks!
- The supply of homes for sale in and around New York City has fallen drastically short of demand. According to the NY Times, there are currently 4,795 listing on the market in Manhattan — the lowest housing supply in 13 years. The recent housing climate is attributed to the unstable market place. In 2008, when the housing bubble burst, financing for new residential projects became scarce, lending practices became tighter and equity became limited. This deterred potential buyers from selling their homes and looking for new ones. Not much has changed –with the market currently unsettled, many homeowners are still refusing to sell. With a limited housing supply, we anticipate that gentrification trends will continue to spread farther into Brooklyn as well as Queens and the Bronx.
- This week, the Race and Social Problems journal released a study that investigates the correlation between income levels and neighborhood connectivity. They found that residents living in low-income, high-crime communities feel more connected to their neighborhood. The Atlantic Cities correlates these feelings to mobility — because residents that live in low-income neighborhoods are less likely to access economic mobility and leave their community, they foster greater ties to the space. We hope that studies like these encourage a greater investment in low-income communities.
- According to the NY Times, a new development in Dumbo is setting a new precedent for real estate prices in Brooklyn. Before construction started, the townhouses were bought for $4.1M, which equates to $1,345 a square foot. This “price is more than double the average per square foot of a Brooklyn brownstone or condominium.” The townhouses are also located within the Dumbo Historic District, which was established in 2007 and protects about 90 buildings. While the developers were required to attain permission from the city, they are also constructing the buildings in such a way that preserves that feeling by utilizing the neighborhood’s industrial aesthetic.
- WNYC reports that during Mayor Bloomberg’s term, 214,000 of house units have been constructed and 7 of the 20 tallest skyscrapers in NYC have been build. And as result of his rezoning efforts, many more buildings remain under construction, including high rises on the West Side, Williamsburg, and Greenpoint. While Mayor Bloomberg has made instrumental in expanding New York City’s housing stock, we would like to see a greater focus on affordable housing with our next mayor. Check out the audio report here.