Navigating the Spring Housing Market
- Corey Cohen
- May 13, 2024
- 2 min read
Updated: Apr 24
This is Corey Cohen, founder of The Roebling Group, and here's a glimpse into recent real estate news.
Good Cause Eviction Law and IAI Changes Shake Up Landlord-Tenant Dynamics
Governor Kathy Hochul recently signed significant legislation affecting New York’s rental market, including the Good Cause Eviction Law.
This law, effective April 20, 2024, requires landlords to have "Good Cause" to evict tenants and applies to all NYC residential apartments (with the option for other localities to opt in). "Good Cause" includes failure to pay rent, substantial breaches of tenancy, nuisance conduct, and more. Some exemptions apply, such as:
Certain buildings' age
Owner-occupied housing with fewer than 10 units
Units that are already subject to rent regulation.
Notice requirements for landlords are also outlined. Additionally, the legislation lifts the Individual Apartment Improvement (IAI) cap for rent-stabilized apartments, allowing for higher rent increases for renovations, with different tiers based on the circumstances of the improvements.
Lawmakers Seek Fixes for Commercial Real Estate 'Train Wreck' as Debt Matures
The commercial real estate market is facing a liquidity crunch, with $4.7 trillion in debt set to mature by 2027. Lawmakers are considering several fixes, including incentivizing equity infusions, converting underused office buildings into mixed-use properties with housing, and reforming The Department of Housing and Urban Development to increase lending activity and affordability.
The Headlines:
WeWork has secured a new restructuring deal. The agreement with senior lenders involves $450 million in Chapter 11 and exit financing in exchange for equity.
Mayor Eric Adams has introduced the "City of Yes for Housing Opportunity" proposal. The proposal could produce as many as 108,850 new homes over the next 15 years.
As homebuyers and sellers navigate the spring housing market, all eyes are on mortgage rates. The volatility of these rates is a key concern, with experts predicting rates to bounce between 6.5% and 7.5%.
D.R. Horton, America's largest home builder, remains optimistic despite rising inventory. CEO Paul Romanowski noted that while there's more inventory, much of it is overpriced or not in their affordable price range.
Some U.S. cities are experiencing significant growth in home prices and sales. The Northeast and Midwest are particularly hot, with Manchester-Nashua, NH, leading the pack.
Real estate agents are the new celebrities, with shows like "Selling Sunset" and "Million Dollar Listing" showcasing their glamorous lifestyles. Agents on these shows are now household names, with viewers tuning in to watch them navigate the high-stakes world of luxury real estate.
Have a question about buying or selling real estate in NYC? Please feel free to book an appointment with me here for a consultation.
Best,
Corey Cohen
Founder
The Roebling Group
646.939.7375
@mrcoreycohen
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