Apartment markets are undersupplied and vacancies are as tight as theyve been in the last 15-20 years due to reduced homeownership coming out of the downturn, according to Keith Rosenthal, president and ceo of New York-based Phoenix Realty Group. That [translates] to four million more renters in the country, he said.
There is a particular dearth of middle-income and affordable housing, particularly in urban areas. Affordability, especially in places like Manhattan, is a relative equation, Rosenthal said. Our rents are 20-30% lower than the fancy buildings next door because were renovating, were in at a lower cost structure, and therefore can charge less rent.
The question of middle-income and affordable housing in New York is going to be a big one for the citys next mayor, who will be elected in November. There is so much new development in New York, so many billions of dollars being invested, and the new mayor is inheriting all of that, Rosenthal said. Certainly, from my perspective, I want to see as much support from the new mayor as possible to promote workforce, middle-income housing in the city. As a New Yorker, it is essential.