A report from Bisnow on California. “While 2019 represents a bounceback year for housing completions in San Francisco, this year’s number of groundbreakings tells a much different story. Through the first three quarters, construction starts on market-rate multifamily units are down 62% to 1,281 from 3,406 at the same point in 2018, according to CoStar. CoStar’s data excludes student and senior housing. Construction costs in San Francisco (and all around the Bay Area) have soared throughout much of the decade, but only more recently has residential rent growth not kept up.”
“In September, San Francisco one-bedroom and two-bedroom apartments saw 2.7% and 1% decreases in year-over-year rents, respectively, according to Zumper. ‘Anything that’s not in an A+ location or doesn’t have long-term, patient capital is going to struggle,’ said Strada Investment Group Vice President William Goodman.”
“Developer Build Inc. received approval for its One Oak project at 1500-1540 Market St. in 2017, but the company doesn’t know when it will break ground on the 40-story, 304-unit development, Build partner Lou Vasquez told Bisnow. ‘It’s been heavy sledding, and with costs where they are it’s difficult to make the deal pencil,’ Vasquez said. ‘We’ve been out looking for equity partners, but there’s not enough.’”
“‘None of the developers I know are quite able to get things to pencil nowadays,’ Emerald Fund Chairman Oz Erickson said. As of earlier this year, San Francisco had 9,717 net units under construction, according to the city’s pipeline report.”
From 10 News San Diego in California. “On any given night, amid the bright lights of the downtown skyline, are the not-so-bright, 41-story towers of the Harbor Club condominiums. Aaron Howe lives two blocks away. ‘Just kind of empty and lonely. You see a few lights, but it’s mostly dark,’ said Howe.”
“Sources tells 10News, at various times in the past decade, as many as half the units have been vacant, meaning they are not a primary residence. It is sights like those dark units prevalent across the downtown area that have drawn the scrutiny of County Board Supervisor Nathan Fletcher.”
“‘I’m concerned that you have foreign wealth funds buying floors that are never occupied. I’m concerned you have people making investments in their fourth, fifth and sixth homes. To tackle the housing crisis, you can’t just build something you call housing. It has to be something that actually houses people,’ said Fletcher.”
From Bisnow on New York. “In some bad news for multifamily owners, New York City’s high residential rents are showing signs of slowing. The rental market had benefited from people steering clear of the sales market amid high prices and political uncertainty over the last six to nine months, Miller Samuel President Jonathan Miller said — but that is starting to change. ‘Not only are we seeing this influence of much lower mortgage rates over the last year, but we are also seeing signs that sellers are more willing to capitulate to market conditions,’ he said.”
From Newsday on New York. “The oceanfront Sagaponack home of fashion designer Elie Tahari is being relisted for $39 million, a price reduction of $5 million. Originally listed three years ago, the house was taken off the market and rented, says Keith Green of Sotheby’s International Realty, who is listing the property with Ann Ciardullo. The three-bedroom, three-bathroom home includes a master suite with views of the Atlantic Ocean, a deck leading to the beach, a room-sized shower, an oversized tub, an office with an 85-inch television and balcony overlooking the great room.”
“Annual property taxes are $55,455.”
Fromm Click Orlando in Florida. “The city of Oviedo is the most expensive place to rent a home in Central Florida, according to RentCafe. ‘A lot of people want to move to Oviedo and there simply are not enough units here for people to live in,’ said Oviedo Mayor-elect Megan Sladek.”
“Sladek said demand is high and supply is low. Only a couple hundred apartments near the Oviedo mall are yet to be developed but no other housing is in the works. Sladek campaigned on anti-growth and promised not to approve any new residential projects seeking to change the comprehensive plan.”
“‘I think continuing to build would not be in the best interests of the people who are already here,’ Sladek said. ‘We need to protect the quality of life that those residents who have made this their home already, and honor the property rights of those who already have rights around town. But to start changing property rights to increase residential density and a lot more multi-family, that would really mess with the vibe here in Oviedo.’”
“Long-time Seminole County realtor Kim Coburn added that Oviedo can also command high rental rates because housing — apartments, condos and houses — are new and luxurious. Coburn said Central Florida’s rental market is also hot because so many homes are under construction and families need a place to stay until their home is completed.”