Renters live it up in luxury condos that didn't sell
Glut of unsold condos in some cities gives urban professionals a chance to enjoy new buildings with lots of amenities for less.
A glut of unsold luxury condos is providing a great opportunity for renters, who are finding deals on new buildings with lots of amenities.
It's not bargain living, but it's a lot cheaper than buying in those buildings would have been, especially during the boom.
For $2,630, tenants can get a 600-square-foot studio in Frank Gehry's New York by Gehry, the tallest residential tower in the world. And it's rent-stabilized, so the price won't rise precipitously in the future.
"People are liking the fact that they don't have to commit to a mortgage and a large dollar amount to live here," MaryAnne Gilmartin, executive vice president of Forest City Ratner, the building's developer, told The Associated Press.
In Miami, the once nearly empty condo buildings constructed near the end of the housing boom are home to tenants who are enjoying waterfront views and a vibrant urban lifestyle they could never have afforded before.
"Five years ago, you wouldn’t have kids fresh out of college living in luxury like this," Brandon Klein, 26, told Bloomberg. He shares a $2,700-a-month waterfront condo in downtown Miami with two roommates, giving them access to a 24-hour concierge, gym, spa and steam room.
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In some cases, developers are turning condos they had planned to sell into rental apartments. In others, investors are taking advantage of plummeting prices and buying units to rent out.
Either way, it's a boon for tenants.
The upscale buildings and amenities appeal to urban professionals who aren't sure they want to buy into an uncertain real-estate market.
Conflicting signals about the market have only added to the allure of renting for those who might otherwise buy. Prices and interest rates are low. But lending standards are strict. Supply is abundant. But so are the forecasts that the U.S. could be in for a lost decade of sideways house prices. It's led to a resurgence in people taking advantage of the "renter's subsidy," the idea that while real-estate prices are stuck or moving lower, it's better — and cheaper — to rent premium real estate than it is to buy.
$600 or more a week for a studio apartment is considered "not bad"? People are complaining the economy is in shambles. It looks more like peoples standards are in shambles. I guess if you choose to pay 600 a week for rent then your employment situation must be precarious at best in slack times.
$2600 for 600 sqft condo. What a ripoff. I'm sure all those people making minimum wa are thrilled to learn that their money keeps them in the ghetto while snobs and spoiled rich kids live the live in a box paid for by mommy and daddy's trustfunds.
Anyone that would pay $2600 for a 600 sqft condo for rent is STUPID!
"$2630 gets you 600 sq.ft"
Maybe by NYC standards that's a deal.....but the equivalent of 20'X30' doesn't seem like the jackpot to me. I've seen a lot of houses with living rooms that big, with a mortgage payment far less than that kind of rent.
About Teresa Mears
Teresa Mears is a veteran journalist who has been interested in houses since her father took her to tax auctions to carry the cash at age 10. A former editor of The Miami Herald's Home & Design section, she lives in South Florida where, in addition to writing about real estate, she publishes Miami on the Cheap to help her neighbors adjust to the loss of 60% of their property value.