Stay up-to date with the latest news in Real Estate Development.
After October 1st, New Yorkers may experience rent increases of up to 7%
A maximum rent rise of 2% to 5% for one-year leases and 4% to 7% for two-year leases has been allowed by the Rent Guidelines Board in New York City. In the Great Hall at Cooper Union in Manhattan, tenants who disagreed with the decision booed and jeered the board members for almost an hour.
In a statement, Mayor Eric Adams expressed his wish that the board "will look at options below the top of these preliminary ranges to strike the right balance to keep New Yorkers in their homes while providing building owners with the resources they need to provide safe, high-quality homes."
Leases starting on or after October 1 would be impacted by any increase. The preliminary vote has historically been a reliable indicator of the ultimate outcome, and the final decision regarding the hikes is anticipated to be announced in June.
New York's first state law prohibiting gas in new buildings is expected to pass
The usage of natural gas in the majority of new buildings will soon be prohibited in New York, making it the first state in the union to do so. Despite the fact that specifics of the legislation have not yet been made public, it is expected to go into effect in 2025 for smaller buildings and in 2028 for larger ones. Berkeley, California became the first city to forbid natural gas hookups in new structures in 2019 after following the example of numerous local governments, including New York City. Building standards have encouraged the electrification of new buildings in Washington and California, but New York will be the first state to do it through legislation. The action is a component of New York's objective to reduce greenhouse gas emissions by 85% by the middle of the century. The natural gas business spent millions of dollars to lobby against municipal building electrification regulations, which resulted in opposition to the bill. There can be comparable opposition to the New York measure.
Purchase vs. renting? Here is how to proceed in the current real estate market
In today's housing market, deciding whether to rent or buy a home has grown more challenging. There are several factors to take into account, including the possibility of an economic collapse, rising mortgage rates, record rents and housing prices, and lifestyle concerns. Despite the fact that renting is frequently less expensive, certain areas promote home ownership based on the monthly payments that include principal and interest, insurance, and property taxes. In 45 of the 50 largest U.S. metro regions, it was more economical to rent than to buy, according to a Realtor.com research. But for some, like the seven-member Jernigan family, buying a house made more sense. The family projected that spending $285,000 on their first home in Cleveland, which was three times bigger than their previous one and could include Leland's mother, would result in monthly savings of more than $700. Despite rising mortgage rates, investors continue to buy and rent homes because there is a need for them. Home ownership is still regarded as a component of the American Dream.
Here are the financial effects of the most recent quarter-point rate increase by the Federal Reserve
The Federal Reserve has raised the target federal funds rate by another 0.25 percentage point, marking the 10th time the Fed has raised its benchmark interest rate over the past year or so. The rate hike will cause financing costs to rise immediately for many forms of consumer borrowing, such as credit cards, with average credit card annual percentage rates at an all-time high of over 20%. Rates for other consumer borrowing, such as auto loans and home equity lines of credit, are also getting higher. On the flip side, savers will earn more money on their deposits, with savings account rates at some of the largest retail banks currently up to 0.39%, on average.
