Digestible Real Estate News

We’re keeping this recurring piece to do a bit more for those genuinely interested in New York real estate and give my LinkedIn designation a little luster. Taking a note from the easy to absorb nuggets of information in Robinhood Snacks‘ newsletter, here are your RealEstateSnacks so I can make this newsletter tax deductible.

1. If you haven’t been aware, the areas of Soho and Noho, two of New York’s most expensive neighborhoods, have been the center of a contentious battle as DiBlasio is trying to push through one of his worst ideas before his term ends: rezoning a massive swath of historic Manhattan. This article will bring you up to speed on what this plan entails, but the sad news is that his plan is slowly moving forward. Members of the city’s Planning Commission voted unanimously in favor of the proposal that had been rejected by the community board in July and later opposed by Manhattan Borough President. Rezoning could pave the way for 3,500 new apartments. However Affordable housing proponents dubbed the plan “a wolf in sheep’s clothing” as it will incentivize developers to demolish the 1,000+ existing rent-stabilized housing in the area. Preservationists too are urging the city council to disavow it. In certain areas along Broadway and Canal, buildings as tall as 27-stories will be permitted, making these neighborhoods more expensive and less equitable

2. With mortgage rates remaining low, plenty of singles are seeking homes. But the supply of entry-level housing is near a five-decade low. The number of one-person households in the US doubled in the last 40 years, rising to 36.1 million in 2020 from 18.2 million in 1980. Of that group, 19% identify as millennials, 19% as Gen X, 39% as baby boomers, and 3% as Gen Z. With mortgage rates remaining low, plenty of singles are seeking homes. Often, they are funding payments on their own so affordable properties are usually preferred. As the number of single buyers is rising, the pool of available options is shrinking. The supply of entry-level housing, defined as homes up to 1,400 square feet, is near a 5-decade low. i-Buyer programs and institutional investors are also competing, elevating prices and diminishing inventory.

3. Another explanation as to why competition is dire in the smaller home market: older buyers seeking smaller or easier-to-maintain homes are crashing into younger buyers in a housing market where the competition is fierce. In 2020, about 28% of real-estate transactions could be characterized as downsizing, with the majority of these sales by buyers 55-plus. This first time buyer product, which there is an under-supply of, has double the competition now. Also the share of older homeowners with debt has increased over the past decade, from 33.2% in 2007 to 55.4% in 2019. However, many older homeowners are deciding to age in place as their homes have escalated in value over the decades and may now cost them less than downsizing. Capital gains taxes factor into this decision too.

4. So as the proud owner of questionably-commerical-sized Brita Dispenser in my fridge because New York’s water has been tasting like trash the last 8 months, there is finally a comforting explanation so I can stop questioning if I’ve been drinking carcinogens. Rest assured, it’s nothing to be worried about – as part of long-term project to repair aging infrastructure, officials have shut down the Catskill Aqueduct, a 92-mile long tunnel that supplies 40% of the city’s drinking water. But with the Catskill Aqueduct shut down for repairs, the Croton reservoir, one of the two other water sources that supplies the city, is picking up the slack. In the past when the city has relied on Croton water, it gets flooded with quality control calls – it’s cause Croton water tastes much different than Catskills water. Click here to read all about this weirdly fascinating topic.

And for the two homes I’m ogling this month...

…this magically restored townhome at 19 Cranberry Street in the heart of Brooklyn Heights, listed at a cool $11,000,000…

…a very rare appearance on the market, one of the Washington Mews properties at 1 Fifth Avenue, the coveted street between 5th Avenue and University, is on the market for $10,475,000…