A report from the Daily Journal in California. “In San Mateo, rents have dropped an average of almost 15% since this time last year, according to reports from rental databases Zumper and Apartmentlist. The county’s median home sales price reached $1.8 million in August, up about $170,000 from April when the spring’s quarantine put a damper on what would typically be the start of the sales season. Once restrictions were lifted and transactions could begin again, prices gradually ascended through the summer — reaching a peak in August and since dropping down to a median sales price of $1.6 million in October.”
From Westside Today in California. “A recent report shows the average rent in a Westside city has decreased 13 percent since the start of the pandemic in March, a steeper drop than experienced in any Southern California city. According to a November report from Apartment List, Santa Monica rents have declined ‘decreased sharply’ by 12.8 percent in comparison to the same time last year. In addition, Santa Monica’s year-over-year rent growth lags the state average of -5.0 percent, as well as the national average of -1.4 percent.”
“According to Apartment List, Santa Monica’s annual 12.8 percent rent decline is the steepest decline of any city in Southern California included in the report. Only the Northern California cities of San Francisco (-23.4 percent), Mountain View (-21.1 percent) Sunnyvale (-17.9 percent), Redwood City (-15.4 percent) and San Mateo (-13.2 percent) experienced sharper declines than Santa Monica.”
“Other Southern California cities that experienced rent decreases this past year include Burbank (-9.7 percent), Los Angeles (-8 percent), Pasadena (-7.7 percent), West Hollywood (-7.3 percent) and Irvine (-4.8 percent). While the report did not include nearby cities of Beverly Hills and Culver City, other estimates show respective -7 percent and -5 percent decreases experienced the past year in those cities.”
The Wall Street Journal. “A number of New Yorkers are seizing on the exodus of renters during the pandemic and the market’s new softness to upgrade and cut costs within city limits. ‘Landlords right now are willing to negotiate,’ said Soraya Selles, a broker at the BOND New York firm. ‘They have so many empty apartments. They’re desperate.’”
“Manhattan had nearly 16,000 empty rental apartments as of September, which was 5.75% of the borough’s total apartment inventory. That’s the highest vacancy rate in at least 14 years, according to a report from brokerage Douglas Elliman and appraiser Jonathan Miller. The lower demand has pressured landlords to capitulate on price in a way most New Yorkers have never witnessed before.”
“Median rent is down 11% in Manhattan on an annual basis, according to the Elliman report, reaching its lowest point in nine years this fall. Landlords are also picking up broker fees typically paid by tenants. They are offering more deal sweeteners, such one or two months of free rent. A record 44.7% of apartments in Manhattan had discounted asking rent during the third quarter of 2020, according to StreetEasy.”
“Stephanie Goldklang was living in a 369-foot studio apartment and paying $2,500 a month in a doorman building on West 71st Street. With her lease ending, she found a 525-square-foot one-bedroom in a high-rise with new finishes and building amenities like community workspace and a clubhouse. It had been on the market for nearly $4,000 a month two years ago, according to a listing on StreetEasy, but Ms. Goldklang rented it for $2,800.”
The Ahwatukee Foothills News in Arizona. “The average sale price of an Ahwatukee home last month jumped 24 percent over the average of October 2019 while the number of units sold was up 27 percent in the same time frame. Properties are selling in a matter of days. While we are still seeing buyers who are not willing to overpay for a property, the number of October listings that required a price reduction declined to 30 percent of the closed listings.”
“So why are 35 percent of the properties that came on the market in October still waiting for an offer? The answer is in the numbers. When we look at the October sales summary of closed sales, we can see that 47, or 30 percent, required a price reduction to get an offer. Month after month, we find that 30-40 percent of the listings require a price reduction to get an offer.”
“Buyers will offer a few points above what the comparable sale data would indicate. However, they are not going to overpay even in this market. If they did, it would still have to appraise and while appraisers will come up a few points over comparable sales values, they will not appraise property at a price that is unreasonable and unsupportable. If a nice property stays on the market longer than similar, comparable properties, there is obviously a pricing issue and a price reduction is in order to get an offer.”
The Denton Record Chronicle in Texas. “New York City developer Park7 Group is facing millions in alleged unpaid construction work conducted by subcontractors for an unfinished five-story student housing complex on Scripture Street. Construction has begun for the project — a five-story, 155-unit single-room occupancy complex planned to feature multiple interconnected buildings — at a lot near the University of North Texas. Construction has been in progress at the Scripture Street lot since at least January, but Park7 now faces millions in unpaid construction work from several subcontractors.”
The Daily Iowan. “The fall season marks the time of year college students begin looking at apartments for the next year. Every student seems to have the same priorities when searching. What are the biggest concerns? Something affordable and close to campus. On the contrary, Iowa City seems to be focusing more on providing luxury apartments that most students cannot afford.”
“Financial experts recommend college students spend no more than 30 percent of their monthly income on rent. Studies show that the median salary for college students who have a job is $13,880 a year or about $1,157 a month. This means then the average college student can only afford around $347 to spend on rent each month.”
“However, buildings like Rise at Riverfront Crossing Rent can cost between $899 to $1,259 per person for a two bedroom and bathroom unit. In addition, a rental condo at the Edge starts at $2,850 per month for a two bedroom and bathroom unit. Buildings like these can cost students paying for $10,000 a year for rent-something which most cannot afford. This is also without factoring in utilities like water, electricity, and WiFi, which adds an additional cost.”
“Instead of investing in luxury apartment buildings, Iowa City and the UI should consider creating more affordable options for students to live in. We’re not looking for a fancy gym or study rooms — we just want something we can afford to live in.”
From Seattle PI in Washington. “Seattle ranked as one of the top 10 metro areas across the country that has invested the most in high-density housing, according to a new study. The study, from Porch, looked at 2019 building permits in cities and states across the U.S. and ranked locations based on the share of building permits issued for housing units in structures with five units or more. The study found in the Seattle metro area, more than 61% of building permits issued in 2019 were for high-density housing, putting the city in the sixth spot on the list. Nearly 30% of existing housing units in Seattle were in high-density structures, according to the study.”
“According to the study, the coronavirus pandemic could have an impact on the future of high-density housing. ‘For decades, metropolitan areas throughout the U.S. have invested in high-density housing — building more apartment buildings, condos, and other multi-unit complexes,’ the report said. ‘However, the COVID-19 pandemic is impacting this long-standing demand for housing in high-density areas and buildings. Even as the distancing measures from COVID ultimately subside, recent research suggests that people may continue to seek housing in less densely populated areas and structures. Cities that have invested heavily in high-density housing may have trouble finding residents to fill these new units.’”