Our last post focused on the growing rental opportunities in Brooklyn as another multifamily development recently received funding and is underway. Additionally, the rental market appears to be holding as favorable to renters, even as the fall housing season begins.
The market in New York City could be echoing a national trend of stagnant rental rates. As highlighted in a recent globest.com report, the national average rent saw a slight drop in 2016 compared to the same period in 2015.
The drop from $1,220 to $1,219 may not seem significant, but it is consistent with a continuing slowdown. However, the overall rental market has outpaced wage growth, meaning that people are still able to afford housing, but some new developments may be out of their price range.
Nevertheless, housing experts believe that the fundamentals of the rental market remain strong, and that affordability won't necessarily be a problem. They see the number of millenials who are not committing to purchasing a home and empty nesters (baby boomers) who are downsizing to enter the rental market. These are the two main drivers of rental demand and as we have noted in prior posts, developers are building multifamily units to suit renters fitting those profiles. Also, the 360,000 new units expected to be completed this year represents the largest number of annual completions in the current cycle.
With that said, there is still a need for negotiations when it comes to finding the best rental rates. An experienced real estate attorney can help prospective renters avoid the pitfalls that can come with looking for a place to live.