Brooklyn and Manhattan will give rise to 8,000 luxury rental units soon, yet the possible decline of renters has become the recent concern of developers, reports say.
Last December, the vacancy rates rose to 2.74 percent and there was a decreasing leasing deals, but New York's real estate is still positive about it and is resolved to maintain the high pricing.
It seems that their positivity has a basis after all. Adam Rose of Rose Associates said NY is cleaner and safer now compared before which made the city totally expect that people would keep migrating. He also believes that unlimited housing is what NY needs right now.
According to The New York Times, Manhattan will have 4,900 units coming this 2016 which is above the usual yearly rate of 3,000 while Brooklyn has also 3,300 new apartments this year.
Along this boom is the developers' innovative building constructions in hopes of attracting more renters. They are offering amenities and other perks to draw more renters to their units, and thus, increase the rental deals, reports say.
The Real Deal reports that Durst Organization designed the 709-unit Bjarke Ingels via 57 West with a pyramid-shaped building to cater to younger and single renters. This project at 625 West 57th Street has a basketball court, a poker room, a 75-foot swimming pool, and 22,000 square feet of community and retail spaces. According to Jonathan Miller of Miller Samuel, an appraisal firm, said that 85 percent of the units are studio-type and can be rented at $2,770 per month.
Miller also believed that the demand is higher for such kind of building.
"It's not correct to say that demand is not there for this new product. It is more accurate to say that in many, if not most, cases, demand is not there at prices set a few years ago," he said via NYT.
