Renting, as opposed to buying, is being viewed increasingly as the smart choice for many Americans, reported Joshua Brockman last week in NPR's "Four Letters Ease Housing Fears For Some: Rent." In past decades, renting was something you did "...if you didn't make enough money, [...] if you weren't ambitious [or] if you weren't sort of smart enough," says Nicolas Retsinas director of Harvard's Joint Center for Housing Studies.
This change in perception stems partially from a distrust of investing given the possibility of incurring a financial loss when selling your home in this market. While the declining homeownership rate and decrease in home sales haven't yet resulted in a surge in rentals, Brockman suggests that "changing attitudes may boost the rental market going forward." Demand for rental housing will grow once the employment market bounces back, predicts Mark Obrinsky, chief economist for the National Multi Housing Council. Nonetheless, currently an average one third of the American population is already renting a home.
As such, some experts are anticipating that the Obama administration will begin putting more emphasis on renting in coming months. A number of officials are now rethinking the emphasis that had been put for years on the importance of homeownership. As Brockman suggests, it will be interesting to see whether the Administration will "seek a more balanced housing policy, talking more about giving people options, worrying more about whether people have a decent place to live, rather than whether they own or rent."
Brockman closed with a point about renting similar to that brought up in the interview with Washington City Paper's Lydia DePillis in our newsletter. Unlike homeownership, renting allows you to pick up and move for a new job, both experts agreed. Being tied down to a home, which can be difficult to sell in this market, rarely affords the same flexibility.
Friday, July 30, 2010
Tuesday, July 27, 2010
UrbanTurf Talks to Urban Igloo About DC Rental Concessions
The days of DC-area landlords using one or more months of free rent and other freebies to win renters' business are numbered, UrbanTurf reported last week in an article on rental concessions. In fact, "across the DC region, concessions offered by landlords have been reduced by a third over the last year," wrote UrbanTurf.
Our very own Richard Gersten told UrbanTurf that lower priced units in luxury properties top the list of those starting to do away with concessions. These units can fill vacancies on their own and the result is a shift from extreme to moderate concessions, Richard explained.
UrbanTurf cited "a strong job market in the DC area, a transient work force, and a housing crisis that caused people to shift from owning homes to renting" as the causes behind increased rental demand and the consequent drop in concessions. With rising demand and fewer available units, "who is in the driver seat is starting to change,” added Grant Montgomery of Delta Associates.
Hoping to take advantage of rental concessions before the window of opportunity closes? Montgomery suggests focusing your search on "areas where there is an influx of new buildings." Richard, meanwhile, recommends keeping an open mind when it comes to location and looking at areas serviced by bus routes. Doing so will open renters up to "neighborhoods that aren’t easily accessible by Metro such as Glover Park, Georgetown and H Street Northeast ... [where] they will in turn be able to find what they want in quality and price.”
Our very own Richard Gersten told UrbanTurf that lower priced units in luxury properties top the list of those starting to do away with concessions. These units can fill vacancies on their own and the result is a shift from extreme to moderate concessions, Richard explained.
UrbanTurf cited "a strong job market in the DC area, a transient work force, and a housing crisis that caused people to shift from owning homes to renting" as the causes behind increased rental demand and the consequent drop in concessions. With rising demand and fewer available units, "who is in the driver seat is starting to change,” added Grant Montgomery of Delta Associates.
Hoping to take advantage of rental concessions before the window of opportunity closes? Montgomery suggests focusing your search on "areas where there is an influx of new buildings." Richard, meanwhile, recommends keeping an open mind when it comes to location and looking at areas serviced by bus routes. Doing so will open renters up to "neighborhoods that aren’t easily accessible by Metro such as Glover Park, Georgetown and H Street Northeast ... [where] they will in turn be able to find what they want in quality and price.”
Tuesday, July 20, 2010
July Rent Check
Check out the July issue of Rent Check, our monthly newsletter. Subscribe here to get the latest news on DC real estate and neighborhoods, expert interviews and more.
Calling All Condo Owners: New Q&A Feature
Thinking about renting out your condo? From marketing to background checks to leases, the process is often challenging and confusing. That's why we're launching a new Q&A blog feature just for condo owners. You submit your questions and Richard Gersten, our founder and managing partner, will answer the best ones here on our blog each month.
Have a question? Here are 4 ways to send it to us:
1. Add it as a comment to this blog post.
2. Post it on our Facebook page.
3. Tweet it to @urban_igloo.
4. Email it to info@urbanigloo.com; please include your name and put "Condo Owner Q&A" in the subject line.
Join us every month as we answer questions on common issues faced by landlords -- and take some of the guesswork out of finding a renter for your property.
Have a question? Here are 4 ways to send it to us:
1. Add it as a comment to this blog post.
2. Post it on our Facebook page.
3. Tweet it to @urban_igloo.
4. Email it to info@urbanigloo.com; please include your name and put "Condo Owner Q&A" in the subject line.
Join us every month as we answer questions on common issues faced by landlords -- and take some of the guesswork out of finding a renter for your property.
Monday, July 19, 2010
Brookland's Pastoral Peace
In the latest installment of its Neighborhood Profile series, UrbanTurf takes a look at DC's Brookland neighborhood. The authors defined its boundaries as "...8th Street to the west, Franklin Street and Rhode Island Avenue to the south, South Dakota Avenue to the east and Michigan Avenue to the north." Brookland, which the authors compare to a small Midwestern town, is characterized by "...wide, leafy residential streets, expansive front yards and minimal commercial presence." Combined with its wide variety of properties, its small town appeal makes Brookland popular among both renters and buyers.
But things may be changing in this sleepy corner of DC; in the next several years, three mixed-use developments--including one from Abdo Development--are scheduled to go up in Brookland. While some are excited about the arrival of new shopping outlets and other amenities, others are concerned that their neighborhood will lose its Midwest-like appeal, falling to "traffic, noise and trash.”
We won't get the final verdict on Brookland for a while, though. We'll have to check back in about five years when much of the new development is complete, suggests UrbanTurf.
But things may be changing in this sleepy corner of DC; in the next several years, three mixed-use developments--including one from Abdo Development--are scheduled to go up in Brookland. While some are excited about the arrival of new shopping outlets and other amenities, others are concerned that their neighborhood will lose its Midwest-like appeal, falling to "traffic, noise and trash.”
We won't get the final verdict on Brookland for a while, though. We'll have to check back in about five years when much of the new development is complete, suggests UrbanTurf.
Neighborhood Expert Interview: Lydia DePillis of City Paper’s Housing Complex
Providing comprehensive coverage of the DC housing market in the form of frequent, short blog posts is not easy. But Lydia DePillis, author of Washington City Paper's Housing Complex blog, is up to the challenge.
From rental trends to neighborhood committee meetings, Lydia stays on top of DC real estate happenings every day. Delivered with subtle tongue in cheek commentary, her reporting has made "Housing Complex" DC's source for a refreshing take on local real estate.
We had the chance to sit down with Lydia, who spoke to us about improving the city's "livability," why Anacostia is "DC's Williamsburg" and more.
Thanks for joining us, Lydia. Prior to taking the reins at Housing Complex, you covered real estate for The New York Observer. Tell us about the big differences you see between the NY and DC rental markets.
I haven’t dealt much with the consumer side of the rental market in D.C., or been around long enough to have a great sense of the long-term dynamics.
A few thoughts though. Both cities some similar fundamentals, like strong rent control laws
(though D.C. may have stronger tenant protections) and a large transient, upwardly mobile population that may rent for a few years in either city before moving on. New York, however, is much more a place of extremes: Absurdly high rents, fashionable addresses, competitive brokers, etc. New York also has cooler places to live further out; Bushwick can have as much cachet as Murray Hill in some circles, while living in Crystal City over Columbia Heights is probably a function of convenience in D.C. Finally, as far as housing options, the group row house is a much more common form of affordable rental in D.C.—we lack the high-rise towers, but are rich in communal residences that are often perfect for younger people with social lifestyles.
Your column covers a wide range of housing topics. In your opinion, what are the biggest issues currently affecting DC real estate?
The most dominant influence is certainly the influx of jobs created by the federal government: It’s kept prices high relative to sickly markets around the country, and pushed demand into areas that federal workers before would have overlooked. Thus, vast swaths of the city are rapidly gentrifying and the housing market is pretty tight, giving developers the confidence to start new residential projects in emerging neighborhoods.
The city government also has a powerful set of regulatory tools that shape the real estate landscape, from inclusionary zoning to zoning overlays, revenue bonds to tax incentives (and disincentives—a particularly powerful example is the vacant property tax, which is encouraging landowners to lease their spaces rather than pay the city while they sit empty). The city is a huge force in the development of most parts of the city.
And when thinking about real estate, it’s impossible to discount the importance of schools. Families with enough means to have some flexibility in their housing choices but not enough to send their children to private school will absolutely go out of their way to live in a good school district, even if that means moving out of the District. It’s probably the biggest thing for D.C. to work on both in order to increase opportunities for current residents and keep families here when they have children.
You recently wrote about DDOT's Livability Program, whose goal is to make DC neighborhoods more livable through transit-specific improvements. In your opinion, what are some other changes that could be made in order to improve the quality of life for DC residents?
Well now, that’s a big question. I’ll take a stab at a few parts of it.
First of all, that post was written by one of our excellent interns, Alex Baca. She did a good job of capturing what priorities the people in the far Southeast have for their neighborhoods: Things like sidewalks and better public transit routes downtown. Transportation is perhaps the most central part of livability, because it shapes so much of how we’re able to operate and what we’re able to build. The availability of parking, for example, is a huge factor in every development and business decision, which I think is a shame—so many good projects are scaled down because they would have traffic impacts that are unacceptable to the neighborhood. In order to get around that, D.C. needs to have a robust network of “alternatives” (which have the added livability benefit of making D.C.’s oppressive air less likely to strangle you).
Other quality of life issues: Cleaning up the Anacostia River so people can enjoy its banks. Creating friendly, welcoming public spaces where people gather. Deterring crime so residents feel safe in their neighborhoods. Supporting affordable housing. Encouraging local businesses to occupy the many vacant storefronts that infect commercial corridors from H Street to Georgia Avenue. The list goes on forever!
Another one of your recent articles, "Homeownership! Huh! What Is It Good For?" examines the rent-buy dilemma. Describe the demographics and other characteristics of a good candidate for renting.
That post was more focused on the societal impact of homeownership, which some journalists and academics have started to reexamine in the wake of the housing crash. From a consumer standpoint, the takeaway is this: In the modern, more fluid economy, where young people may stay in jobs for only a few years before moving rather than sticking with one company for their entire lives, it makes more sense not to be as tied down by a house and a mortgage. I think, though, that it’s less about who should rent or who should buy than considering, if you do have the financial resources to buy, how to make a smart investment. Owning real estate is still one of the better ways to build assets, even if you don’t want to live in one house or condo for the rest of your life. If that’s the case, a buyer just needs to consider whether the house will hold its value in the short term as well.
In UrbanTurf's "Neighborhoods of 2015" compilation, you wrote that Mt. Pleasant is the up-and-coming neighborhood to keep an eye on. Any others that have caught your attention?
Yes—the other neighborhood I pointed out for that UrbanTurf feature was historic Anacostia, where there’s so much room to grow. The coming wave of federal workers to the St. Elizabeth’s campus will fundamentally reshape neighborhoods from Congress Heights to Poplar Point, with Anacostia as the epicenter, if city leaders and local entrepreneurs can find a way to retain some of that wealth on the eastern side of the river. It already has a metro stop, a streetcar on the way, and plenty of spaces for new, creative businesses. I really do think it’s D.C.’s Williamsburg, whatever you may think about that as a model for development.
I also agree with some of the other projections in UrbanTurf’s feature—Brookland is clearly on its way up, and it seems like a new café wants to open up near Truxton Circle every week. I’m less bullish on the big, glassy areas like Capitol Riverfront, Navy Yards, and Rosslyn though. They may have residential capacity, but it’s going to take a while before they develop the kind of neighborhood character that attracts people who really want to put down roots.
---
Read last month’s interview with Mark Wellborn and Will Smith of DC real estate website UrbanTurf.
From rental trends to neighborhood committee meetings, Lydia stays on top of DC real estate happenings every day. Delivered with subtle tongue in cheek commentary, her reporting has made "Housing Complex" DC's source for a refreshing take on local real estate.
We had the chance to sit down with Lydia, who spoke to us about improving the city's "livability," why Anacostia is "DC's Williamsburg" and more.
Thanks for joining us, Lydia. Prior to taking the reins at Housing Complex, you covered real estate for The New York Observer. Tell us about the big differences you see between the NY and DC rental markets.
I haven’t dealt much with the consumer side of the rental market in D.C., or been around long enough to have a great sense of the long-term dynamics.
A few thoughts though. Both cities some similar fundamentals, like strong rent control laws
(though D.C. may have stronger tenant protections) and a large transient, upwardly mobile population that may rent for a few years in either city before moving on. New York, however, is much more a place of extremes: Absurdly high rents, fashionable addresses, competitive brokers, etc. New York also has cooler places to live further out; Bushwick can have as much cachet as Murray Hill in some circles, while living in Crystal City over Columbia Heights is probably a function of convenience in D.C. Finally, as far as housing options, the group row house is a much more common form of affordable rental in D.C.—we lack the high-rise towers, but are rich in communal residences that are often perfect for younger people with social lifestyles.Your column covers a wide range of housing topics. In your opinion, what are the biggest issues currently affecting DC real estate?
The most dominant influence is certainly the influx of jobs created by the federal government: It’s kept prices high relative to sickly markets around the country, and pushed demand into areas that federal workers before would have overlooked. Thus, vast swaths of the city are rapidly gentrifying and the housing market is pretty tight, giving developers the confidence to start new residential projects in emerging neighborhoods.
The city government also has a powerful set of regulatory tools that shape the real estate landscape, from inclusionary zoning to zoning overlays, revenue bonds to tax incentives (and disincentives—a particularly powerful example is the vacant property tax, which is encouraging landowners to lease their spaces rather than pay the city while they sit empty). The city is a huge force in the development of most parts of the city.
And when thinking about real estate, it’s impossible to discount the importance of schools. Families with enough means to have some flexibility in their housing choices but not enough to send their children to private school will absolutely go out of their way to live in a good school district, even if that means moving out of the District. It’s probably the biggest thing for D.C. to work on both in order to increase opportunities for current residents and keep families here when they have children.
You recently wrote about DDOT's Livability Program, whose goal is to make DC neighborhoods more livable through transit-specific improvements. In your opinion, what are some other changes that could be made in order to improve the quality of life for DC residents?
Well now, that’s a big question. I’ll take a stab at a few parts of it.
First of all, that post was written by one of our excellent interns, Alex Baca. She did a good job of capturing what priorities the people in the far Southeast have for their neighborhoods: Things like sidewalks and better public transit routes downtown. Transportation is perhaps the most central part of livability, because it shapes so much of how we’re able to operate and what we’re able to build. The availability of parking, for example, is a huge factor in every development and business decision, which I think is a shame—so many good projects are scaled down because they would have traffic impacts that are unacceptable to the neighborhood. In order to get around that, D.C. needs to have a robust network of “alternatives” (which have the added livability benefit of making D.C.’s oppressive air less likely to strangle you).
Other quality of life issues: Cleaning up the Anacostia River so people can enjoy its banks. Creating friendly, welcoming public spaces where people gather. Deterring crime so residents feel safe in their neighborhoods. Supporting affordable housing. Encouraging local businesses to occupy the many vacant storefronts that infect commercial corridors from H Street to Georgia Avenue. The list goes on forever!
Another one of your recent articles, "Homeownership! Huh! What Is It Good For?" examines the rent-buy dilemma. Describe the demographics and other characteristics of a good candidate for renting.
That post was more focused on the societal impact of homeownership, which some journalists and academics have started to reexamine in the wake of the housing crash. From a consumer standpoint, the takeaway is this: In the modern, more fluid economy, where young people may stay in jobs for only a few years before moving rather than sticking with one company for their entire lives, it makes more sense not to be as tied down by a house and a mortgage. I think, though, that it’s less about who should rent or who should buy than considering, if you do have the financial resources to buy, how to make a smart investment. Owning real estate is still one of the better ways to build assets, even if you don’t want to live in one house or condo for the rest of your life. If that’s the case, a buyer just needs to consider whether the house will hold its value in the short term as well.
In UrbanTurf's "Neighborhoods of 2015" compilation, you wrote that Mt. Pleasant is the up-and-coming neighborhood to keep an eye on. Any others that have caught your attention?
Yes—the other neighborhood I pointed out for that UrbanTurf feature was historic Anacostia, where there’s so much room to grow. The coming wave of federal workers to the St. Elizabeth’s campus will fundamentally reshape neighborhoods from Congress Heights to Poplar Point, with Anacostia as the epicenter, if city leaders and local entrepreneurs can find a way to retain some of that wealth on the eastern side of the river. It already has a metro stop, a streetcar on the way, and plenty of spaces for new, creative businesses. I really do think it’s D.C.’s Williamsburg, whatever you may think about that as a model for development.
I also agree with some of the other projections in UrbanTurf’s feature—Brookland is clearly on its way up, and it seems like a new café wants to open up near Truxton Circle every week. I’m less bullish on the big, glassy areas like Capitol Riverfront, Navy Yards, and Rosslyn though. They may have residential capacity, but it’s going to take a while before they develop the kind of neighborhood character that attracts people who really want to put down roots.
---
Read last month’s interview with Mark Wellborn and Will Smith of DC real estate website UrbanTurf.
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