Renting Hot In NJ

From the NY Times:

For Rent: The Hottest Form of Housing

IN the eternal dance of developers responding to the rhythms of change, the belle of the ball is always changing.

“Condominium construction and conversion, particularly on the Gold Coast, has been running sort of rampant,” said Jeffrey Dunne, a vice chairman of the tristate investment team of the large property-services firm CB Richard Ellis. “Coincidentally,” he pointed out, “there is a diminished supply of rental buildings.”

Meanwhile, added Jeffrey Wiener, president of Kislak, a Clifton-based broker of rental properties, demand for apartments remains high, because there is always a large group of North Jersey residents who are “renters by choice.” And as interest rates have begun to climb, pricing more people out of the homebuying market, the number of renters inevitably increases, he said.

Now, it seems, rental apartment buildings are emerging from wallflower status and may be headed for a stint as prom queen.

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6 Responses to Renting Hot In NJ

  1. Ph.D. says:

    What is the logic behind a less than 6% return rate from the rent? I am completely baffled.

    -Could somebody please explain?

  2. grim says:

    Here is a primer on capitalization rates (cap rates):

    Cap Rate

    Why take on the risk if the cap rate is low, especially if you can get a similar return from a lower risk investment?

    grim

  3. Anonymous says:

    You can get 5% from an online bank and 5.5% from a CD.

  4. Anonymous says:

    ph.d

    I don’t get it either.

  5. Pingback: Anonymous