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Top U.S. Neighborhoods that Got the Most Apartments After the Recession

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The real estate market has been through a lot since the recession. After “the big housing crash” home buying humbly stepped aside, allowing renting to come out of the shadows, stripped of its old “low-income” stigma, all glamorous and hip, making its way into the nicest, most sought after American neighborhoods.

That’s how the great apartment boom happened. Since 2010, new apartment buildings have been popping up faster than you can say “concierge”, revitalizing forgotten downtowns and turning run-down neighborhoods into trendy new hotspots. We analyzed construction data from Yardi Matrix and Property Shark, in about 1,000 neighborhoods from coast to coast, to see which neighborhoods grew the most from a rental perspective. We took into account large-scale rental buildings of 50 or more units located in the largest 30 cities in the U.S.

Here are the top 10 U.S. neighborhoods for new apartments built (2010-2016):

Table by RENTCafé

1. Long Island City, Queens, NY

  • New apartments: 12,533
  • New apartment buildings: 41
  • Neighborhood type: Gentrified
  • Percentage of new apts from total apts in the nhood: 36%

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More than a decade ago, Long Island City was tagged to become a hot nabe. It had the 3 things that any neighborhood deemed for greatness needs: location, location, and location. In a matter of just a few years, the neighborhood has gone from dated industrial vibe to gleaming new glass towers, to take the number 1 spot for building by far more apartments than any other neighborhood in the country has done in recent (post-recession) history. A massive total of 12,533 new apartments in 41 buildings were built between 2010 and 2016 in this Queens neighborhood.

2. Downtown Los Angeles

  • New apartments: 7,551
  • New apartment buildings: 35
  • Neighborhood type: Urban core
  • Percentage of new apts from total apts in the nhood: 63%

Downtown Los Angeles
To say that Downtown LA has been reborn is an understatement. What used to be a vibrant downtown at the turn of the 20th century became a declining neighborhood with rundown, dilapidated buildings by the turn of the 21st century. But thanks to local effort to revive DTLA, record numbers of new buildings have gone up in the past decade, bringing people back to what is now a lively, thriving residential and commercial area worthy of its “downtown” designation. As many as 35 new large-scale rental properties were built between 2010-2016, making up 63% of all the apartments located in Downtown L.A.

3. North San Jose

  • New apartments: 6,814
  • New apartment buildings: 11
  • Neighborhood type: Tech hub
  • Percentage of new apts from total apts in the nhood: 74%

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North San Jose takes the #3 spot on this list. Located in the third most populous city in California, the neighborhood is already an enclave for tech professionals, making tremendous strides in industrial, commercial and residential development. With new tech companies constantly opening offices in the area, including Apple’s 86-acre R&D campus, demand for rental housing has skyrocketed in North San Jose, prompting a boom in new apartments, especially from 2014 onward. About three-quarters of all rentals in the neighborhood are newer than 2010. (Photo Credit: Google Maps)

4. Clinton – Hell’s Kitchen, Manhattan, NY

  • New apartments: 6,058
  • New apartment buildings: 15
  • Neighborhood type: Gentrified
  • Percentage of new apts from total apts in the nhood: 22%

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Hell’s Kitchen is hot, and not that the devil’s cooking here, rather it’s one of the hottest up and coming neighborhoods in Midtown Manhattan. At least that’s what developers were betting on when they decided to build over 6,000 new apartments on less than one square mile of space.

5. Uptown, Dallas

  • New apartments: 5,839
  • New apartment buildings: 22
  • Neighborhood type: Live-work-play community
  • Percentage of new apts from total apts in the nhood: 67%

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Dallas is one of the fastest growing rental markets, so it’s no surprise that it ranks in the top 10 with 2 neighborhoods: Uptown and Oak Lawn. Located North of Downtown Dallas, the trendy enclave of single white-collar young professionals that is known as Uptown is becoming more vertical and denser year after year, with 22 new large-scale apartment developments opening in just 7 years, including some pretty impressive high-rises. What’s even more impressive is that the new apartments represent two-thirds of the total apartments in Uptown.

6. Williamsburg, Brooklyn, NY

  • New apartments: 5,269
  • New apartment buildings: 29
  • Neighborhood type: Gentrified
  • Percentage of new apts from total apts in the nhood: 25%

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The king of Brooklyn gentrification, Williamsburg has become virtually unrecognizable from what it used to look like in the 1980s. It has grown exponentially both on the commercial and residential front. The metamorphosis brought along unprecedented demand and rapidly rising housing prices, exacerbating the need for more high-density apartment developments. Between 2010 and 2016, 29 new large-scale apartment buildings opened in this Brooklyn neighborhood, which, along with the opening of a Whole Foods store and an Apple store, undoubtedly took Williamsburg into a new era. And the neighborhood’s irreversible transformation continues with another colossal project under construction along the riverfront known as the Domino redevelopment.

7. Oak Lawn, Dallas

  • New apartments: 4,892
  • New apartment buildings: 17
  • Neighborhood type: LGBT community
  • Percentage of new apts from total apts in the nhood: 56%

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Back in the day, Oak Lawn used to be an inexpensive Dallas suburb, but nowadays it’s better known as one of the most affluent neighborhoods in the Metroplex, outdoing many other wealthy neighborhoods throughout the country in high-end rentals. Moreover, the apartment market saw a huge boom after the recession, with more than half of Oak Lawn’s rental units having been built during this period. (Photo Credit: Google Maps)

8. Downtown Brooklyn, NY

  • New apartments: 3,851
  • New apartment buildings: 13
  • Neighborhood type: Business district
  • Percentage of new apts from total apts in the nhood: 31%

Rent Cafe Downtown Brooklyn NY apartments for rent
Downtown Brooklyn is the second largest business district in NYC after Manhattan. Since its rezoning in 2004, the neighborhood has been transforming on all fronts, thanks in part to private investments worth billions of dollars. Since 2010, 13 modern apartment developments have popped up in Downtown Brooklyn, competing with historical office buildings for the most amazing views of the Lower Manhattan skyline.

9. Washington Avenue – Memorial Park, Houston

  • New apartments: 3,569
  • New apartment buildings: 12
  • Neighborhood Type: Eclectic entertainment district
  • Percentage of new apts from total apts in the nhood: 55%

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The area along Washington Avenue in Houston has been the fastest changing strip of land in the entire city. The convenient location of the Washington Ave – Memorial Park neighborhood, which encompasses the urban Memorial Park, makes it very attractive for young professionals working downtown. Previously a predominantly commercial area, residential development has really taken off in recent years, adding over 3,500 new apartments since 2010, which is more than half of the total existing apartments in the neighborhood.

10. Upper West Side, Manhattan, NY

  • New apartments: 3,536
  • New apartment buildings: 11
  • Neighborhood type: Residential
  • Percentage of new apts from total apts in the nhood: 11%

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Nestled between Riverside and Central Park, the UWS is one of the most upscale residential neighborhoods in the country. Boasting historic brownstone residences and lots of green space, the neighborhood has added a fresh dose of new rental apartments since the recession.

11. Chelsea, Manhattan, NY

  • New apartments: 3,504
  • New apartment buildings: 13
  • Neighborhood type: Art District
  • Percentage of new apts from total apts in the nhood: 72%

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12. Broadway, Seattle

  • New apartments: 3,496
  • New apartment buildings: 29
  • Neighborhood type: Residential and entertainment district
  • Percentage of new apts from total apts in the nhood: 67%

Rent Cafe Broadway Seattle Apartments for Rent

13. Greenway – Upper Kirby, Houston

  • New apartments: 3,147
  • New apartment buildings: 10
  • Neighborhood type: Commercial district
  • Percentage of new apts from total apts in the nhood: 45%

Rent Cafe Greenway Upper Kirby Houston TX apartments for rent
(Photo Credit: Google Maps)

14. Memorial, Houston

  • New apartments: 3,029
  • New apartment buildings: 10
  • Neighborhood type: Mixed-use
  • Percentage of new apts from total apts in the nhood: 59%

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15. Greater Uptown, Houston

  • New apartments: 3,008
  • New apartment buildings: 10
  • Neighborhood type: Business district
  • Percentage of new apts from total apts in the nhood: 30%

Rent Cafe Houston Greater Uptown Apartments for Rent
(Photo Credit: Google Maps)

16. South Lake Union, Seattle

  • New apartments: 2,838
  • New apartment buildings: 15
  • Neighborhood type: Live-work-play community
  • Percentage of new apts from total apts in the nhood: 68%

Rent Cafe South Lake Union Seattle Apartments for Rent

17. The Loop, Chicago

  • New apartments: 2,830
  • New apartment buildings: 8
  • Neighborhood type: Business district
  • Percentage of new apts from total apts in the nhood: 76%

Rent Cafe The Loop Chicago Apartments for Rent

18. Northwest, San Antonio

  • New apartments: 2,785
  • New apartment buildings: 12
  • Neighborhood type: Mixed-use
  • Percentage of new apts from total apts in the nhood: 49%

Rent Cafe San Antonio Northwest Apartments for Rent
(Photo Credit: Google Maps)

19. North Burnet, Austin

  • New apartments: 2,739
  • New apartment buildings: 6
  • Neighborhood type: Commercial district
  • Percentage of new apts from total apts in the nhood: 82%

Rent Cafe San Antonio North Burnet Apartments for Rent

20. Downtown, San Jose

  • New apartments: 2,663
  • New apartment buildings: 14
  • Neighborhood type: Urban core
  • Percentage of new apts from total apts in the nhood: 48%

Rent Cafe San Jose Downtown Apartments for Rent

 

Look-up table: Top 50 U.S. neighborhoods with most new apartments post-recession

Table by RENTCafé

Methodology: 
Apartment construction data was provided by our sister companies Yardi Matrix and Property Shark. Yardi Matrix is a business development and asset management tool for brokers, sponsors, banks and equity sources underwriting investments in the multifamily, office, industrial and self-storage sectors. Property Shark is an established data provider for the NY real estate industry and other major U.S. markets, offering in-depth property reports, sales data, foreclosure listings, and other research tools.
This analysis includes all rental units built between 2010 and 2016 in multifamily properties of 50+ units, located in the top 30 most populous cities in the United States.
Neighborhood mapping by RENTCafé.

Fair use and redistribution

We encourage you and freely grant you permission to reuse, host, or repost the images in this article. When doing so, we only ask that you kindly attribute the authors by linking to RENTCafé.com or this page, so that your readers can learn more about this project, the research behind it and its methodology. For more in-depth, customized data, please contact us at media@rentcafe.com.


Posted on June 3, 2017 at 6:30 pm
Lindsay Larsen | Posted in Uncategorized |

Appraisal issues

AA+A

Owners, Appraisers Aren’t Seeing Eye-to-Eye

Appraisals in April were, on average, 1.9 percent lower than what homeowners expected. That means on an average home price of $236,400, homeowners misjudged their price by about $4,500.

Read more: Will There Be Too Few Appraisers in 10 Years?

The gap between appraiser and homeowner views on price is spreading wider, according to the latest National Quicken Loans Home Price Perception Index. April marks the fifth consecutive month that the gap between price opinions has widened. In March, homeowners estimated their home prices were 1.77 percent higher than what appraisers said they were worth.

“The appraisal is one of the most important data points in a mortgage transaction,” says Bill Banfield, Quicken Loans vice president of capital markets. “This single number can impact how much money a buyer needs to bring to closing, or the equity that is available to the homeowner on a refinance. If homeowners have a grasp on home value differences, throughout their local area, it can lead to a smoother mortgage process.”

The study continues to show appraised values tend to be higher than expected in the West. On the other hand, appraisals were lower than expectations in the Midwest and East.

Source: Quicken Loans


Posted on June 1, 2017 at 12:09 am
Lindsay Larsen | Posted in Uncategorized |

2017 Market Update

Western Washington Real Estate Market Update

Posted in Market News and Western Washington Real Estate Market Update by Matthew Gardner, Chief Economist, Windermere Real Estate

 

ECONOMIC OVERVIEW

I’m happy to report that Washington State continues to add jobs at a steady rate. While the rate of growth is tapering, this is because many markets are getting close to “full employment”, during which time growth naturally slows. That said, I believe that the state will add around 70,000 jobs in 2017. Washington State, as well as the markets that make up Western Washington, continues to see unemployment fall and I anticipate that we will see this rate drop further as we move through the year. In all, the economy continues to perform at or above average levels and 2017 will be another growth year.

 

 

HOME SALES

  • There were 15,652 home sales during the first quarter of 2017. This is an increase of 9.5% from the same period in 2016, but 20.7% below the total number of sales in the final quarter of 2016.
  • With an increase of 45.5%, sales in Clallam County grew at the fastest rate over the past 12 months. There were double-digit gains seen in an additional 10 counties, suggesting that demand remains very robust. The only modest decline in sales was seen in Grays Harbor County.
  • The number of homes for sale showed no improvement at all, with an average of just 6,893 homes for sale in the quarter, a decline of 33% from the previous quarter and 25% from the first quarter of 2016. Pending sales rose by 2% relative to the same quarter a year ago.
  • The key takeaway from this data is that 2017 will offer little relief to would-be home buyers as the housing supply remains severely constrained.

 

 

 

HOME PRICES

  • With demand continuing to exceed supply, home prices continued to rise at above-average rates. Year-over-year, average prices rose by 9.5% but were 1.1% lower than in the final quarter of 2016. The region’s average sales price is now $409,351.
  • Price growth in Western Washington is unlikely to taper dramatically in 2017 and many counties will continue to see prices appreciate well above their long-term averages.
  • When compared to the same period a year ago, price growth was most pronounced in Kittitas County, which rose by 19.6%. Double-digit price growth was seen in an additional 10 counties. The only market where the average price fell was in the ever-volatile San Juan County.
  • It is clear that rising interest rates have not taken much of a sheen off the market.

 

 

DAYS ON MARKET

  • The average number of days it took to sell a home in the first quarter dropped by 16 days when compared to the first quarter of 2016.
  • King County remained the tightest market, with the average time to sell a home at just 31 days. Island County was the only area where it took longer to sell a home than seen a year ago; however, the increase was just one day.
  • In the first quarter of the year, it took an average of 70 days to sell a home. This is down from the 86 days it took in the first quarter of 2016, but up from the 64 days it took in the final quarter of last year.
  • Given woefully low levels of inventory in all Western Washington markets, I do not expect to see the length of time that it takes to sell a home rising in 2017. In fact, it is likely that it will continue to drop.

 

 

CONCLUSIONS

This speedometer reflects the state of the region’s housing market using housing inventory, price gains, home sales, interest rates, and larger economic factors. For the first quarter of 2017, I moved the needle a little more in favor of sellers. The rapid increase in mortgage rates during the fourth quarter of 2016 has slowed and buyers are clearly out in force.

 

 

Matthew Gardner is the Chief Economist for Windermere Real Estate, specializing in residential market analysis, commercial/industrial market analysis, financial analysis, and land use and regional economics. He is the former Principal of Gardner Economics, and has over 25 years of professional experience both in the U.S. and U.K.


Posted on May 20, 2017 at 7:01 pm
Lindsay Larsen | Posted in Uncategorized |

2017 Days On Market Report

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Posted on April 19, 2017 at 5:45 pm
Lindsay Larsen | Posted in Uncategorized |

10 anti burglary tips for sellers

http://realtormag.realtor.org/well-being/safety/article/2016/12/10-anti-burglary-tips-for-your-sellers


Posted on December 9, 2016 at 10:14 pm
Lindsay Larsen | Posted in Uncategorized |

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