Housing NYC: Rents, Markets and Trends 2019 Provide the Foundation for the Board’S Deliberations and Our Decisions This Year

Housing NYC: Rents, Markets and Trends 2019 Provide the Foundation for the Board’S Deliberations and Our Decisions This Year

Housing NYC Rents, Markets City Rent Guidelines Board York New Board Members & Trends Chair: David Reiss Public Members: Cecilia Joza • Alex Schwartz 2019 German Tejeda • May Yu Owner Members: Patti Stone • Scott Walsh Tenant Members: Sheila Garcia • Leah Goodridge Staff Members Executive Director: Andrew McLaughlin Research Director: Brian Hoberman Deputy Research Director: Danielle Burger Office Manager: Charmaine Superville Table of Contents Table of Contents Chair’s Acknowledgments ...............................7 Net Operating Income................................33 Exec Director’s Acknowledgments ............9 Operating Cost Ratios .................................33 Net Operating Income After Inflation.........................................................35 INCOME AND EXPENSE Longitudinal Study Rents and Income.........................................37 Price Index of Operating Costs Operating Costs.............................................38 What’s New.............................................................13 RPIE Expenses and the PIOC.....................38 Introduction...........................................................14 Operating Cost Ratios .................................39 Overview .................................................................14 Net Operating Income................................39 Price Index Components ...................................15 Summary.................................................................40 Taxes ..................................................................15 Methodology.........................................................40 Labor Costs .....................................................16 Fuel ....................................................................16 Mortgage Survey Report Utilities..............................................................17 What’s New.............................................................45 Maintenance...................................................17 Introduction...........................................................46 Administrative Costs....................................17 Overview .................................................................46 Insurance Costs .............................................18 Survey Respondents ...........................................46 PIOC by Building Type ........................................18 Mortgage Survey Analysis Rent Stabilized Hotels.........................................18 Financing Availability and Terms ............47 Rent Stabilized Lofts............................................19 Underwriting Criteria ..................................48 The Core PIOC........................................................19 Non-Performing Loans & PIOC Projections for 2020 .................................19 Foreclosures.................................................49 Commensurate Rent Adjustments ................20 Characteristics of Rent Methodology.........................................................22 Stabilized Buildings ..................................50 Owner Survey ................................................22 Loan Expectations........................................51 Taxes ..................................................................22 Longitudinal Analysis Labor Costs .....................................................23 Financing Availability and Terms ............51 Fuel ....................................................................23 Underwriting Criteria and Utilities..............................................................23 Loan Performance ........................................52 Maintenance...................................................24 Sales Data Analysis Administrative Costs....................................24 Building Sales Volume.................................52 Insurance Costs .............................................24 Building Sales Prices....................................53 Price Index Projections ...............................24 Summary.................................................................54 Acknowledgments...............................................25 INCOME AND AFFORDABILITY Income and Expense Study What’s New.............................................................27 Income and Affordability Study Introduction...........................................................28 What’s New................................................................57 Local Law 63 ...................................................28 Introduction..............................................................58 RPIE Study Overview....................................................................58 Rents and Income.........................................28 Economic Conditions Comparing Rent Measurements.............29 Economic Output & Consumer Prices......58 Operating Costs.............................................31 Unemployment Statistics ............................59 “Distressed” Buildings .................................32 Employment Statistics ..................................60 Housing NYC: Rents, Markets & Trends 2019 • Page 3 Table of Contents Wage Data..........................................................61 Additions to the Rent Regulated Housing Stock Bankruptcy Statistics......................................62 Section 421-a and J-51 Programs..............94 Poverty Statistics ............................................62 Mitchell-Lama Buyouts ................................95 2017 Housing & Vacancy Survey Loft Units............................................................95 Affordability of Rental Housing..................63 Changes in Regulatory Status ....................95 Income ................................................................63 Other Additions to the Stabilized Rent......................................................................64 Housing Stock ..............................................95 Vacancy Rates ..................................................64 Subtractions from the Rent Regulated Other Measures of Income & Affordability Housing Stock American Community Survey ....................65 High-Rent High-Income Deregulation ....96 Consumer Price Index....................................67 High-Rent Vacancy Deregulation..............97 Section 8 Housing Availability....................68 Co-op and Condo Conversions ..................98 Non-Government Sources Expiration of Section 421-a and of Affordability Data....................................68 J-51 Benefits ..................................................98 Real Property Tax Credit................................69 Substantial Rehabilitation............................98 Cash Assistance & Benefit Programs ................70 Conversion to Commercial Housing Policy..........................................................70 or Professional Status ................................99 Homelessness & Housing Court Other Losses to the Housing Stock ..........99 Homelessness ..................................................71 Summary ..........................................................................99 Housing Court..................................................73 Summary Table of Additions Summary....................................................................73 and Subtractions................................................101 HOUSING SUPPLY Appendices ..............................................................105 Glossary ......................................................................148 Housing Supply Report Index ..............................................................................159 What’s New................................................................79 Introduction..............................................................80 Overview....................................................................80 NYC’s Housing Inventory......................................80 Changes in the Housing Inventory Housing Permits ..............................................82 Housing Completions....................................83 City-Sponsored Construction ....................83 Tax Incentive Programs ................................84 Conversions and Subdivisions....................86 SRO Housing and Airbnb Rentals..............87 Co-op and Condo Activity............................88 Rehabilitation ..................................................88 Tax-Delinquent Property and Anti-Abandonment Strategies........................90 Demolitions ..............................................................90 Summary....................................................................91 Changes to the Rent Stabilized Housing Stock in New York City What’s New................................................................93 Overview....................................................................94 Page 4 • Table of Contents List of Appendices List of Appendices Appendix A: Guidelines Adopted C.5 Average Net Operating Income in 2017 per by the Board Apartment per Month by Building Size and Location.....................................................116 A.1 Apartments & Lofts—Order #51 ...............105 C.6 Distribution of Operating Costs in 2017, by Building Size and Age.............................116 A.2 Hotel Units—Order #49................................105 C.7 Number of “Distressed” Buildings in 2017 ................................................................117 Appendix B: Price Index of C.8

View Full Text

Details

  • File Type
    pdf
  • Upload Time
    -
  • Content Languages
    English
  • Upload User
    Anonymous/Not logged-in
  • File Pages
    163 Page
  • File Size
    -

Download

Channel Download Status
Express Download Enable

Copyright

We respect the copyrights and intellectual property rights of all users. All uploaded documents are either original works of the uploader or authorized works of the rightful owners.

  • Not to be reproduced or distributed without explicit permission.
  • Not used for commercial purposes outside of approved use cases.
  • Not used to infringe on the rights of the original creators.
  • If you believe any content infringes your copyright, please contact us immediately.

Support

For help with questions, suggestions, or problems, please contact us