Development in New York City has increased at an unprecedented pace, with 19,948 new apartments expected by the end of 2018 and another 27,000 in the planning stages.
This has been most evident in North Brooklyn following the 2005 rezoning of the Williamsburg and Greenpoint waterfronts. By the end of 2018, Williamsburg is expected to have 1,932 new apartments available- almost 10% of new apartments in New York City. With this boom in housing inventory, the problem of filling vacant apartments is becoming more urgent for property owners.
In Williamsburg, the situation is becoming more challenging for landlords. The impending 15-month shutdown of the L train is leaving residents without a major transportation route and that’s having a huge impact on the rental market. According to StreetEasy, rental prices in Williamsburg dropped 7.7% in the six months after the closure was announced. Rental prices decreased year-over-year by $250 per month as renters begin to leave the neighborhood to avoid the transportation inconvenience. In the meantime, housing inventory has increased 25% year-over-year.
As prices decrease and inventories increase, landlords have been forced to offer additional tenant amenities to drive application traffic. According to StreetEasy, 18% of Williamsburg apartments are currently offering rent concessions. These include offering discounted rent or one month or more of free rent. At the same time, newer developments have added apartment amenities like unique outdoor spaces, pools, and workout studios to attract tenants.
In the face of changing market forces, there is no better time for landlords to turn to TheGuarantors. Using our risk management platform, landlords can increase conversion and drive applications by presenting us as an added apartment amenity to tenants.
With our Lease Guarantee product, we are able to provide additional qualified tenants to a building, which helps landlords fight vacancy. With Security Deposit Replacement, landlords can reduce tenants’ moving expenses and offer near “deposit-free” units as an additional amenity. Finally, our Renters Insurance Compliance program is an easy way for tenants to buy the right renters insurance policy and offers landlords free liability management services.
As market forces change, we are here to help the real estate ecosystem for both landlords and tenants to make their leasing process smarter and simpler.