Raising Rent In Lakewood

[fisherprice]

a simple answer to your question לענ"ד, is, that during the height of post-covid until a couple of months ago, everyone that had access to a couple of dollars bought a house to catch the low mortgage rates and the housing hype, however it's only showing up now in the rental market that there's so many  basements opening up as these markets are always lagging by a few months since there are leases expiring etc..
however now there's been a total standstill in the housing market as there are barely any sales as most people don't want to sell now for various reasons, such as they want to get the most $ possible, and they don't want to trade their 3% mortgage for 6.5% buying elsewhere etc. so this data should only show up in market in a few months, and since there's much less people moving and buying now it should push the market even higher in a few months...
the only new developments coming up are a a some on prospect, and a couple of projects on the 70 from imperial belz and vishnitz, some wont be ready for another while, but not enough to sustain the 1000 couples a year settling in lakewood.
די אייבישטער זאל געבען אסאך פרנסה פאר אלע אידישע קינדער

[Euclid]

a simple answer to your question לענ"ד, is, that during the height of post-covid until a couple of months ago, everyone that had access to a couple of dollars bought a house to catch the low mortgage rates and the housing hype, however it's only showing up now in the rental market that there's so many  basements opening up as these markets are always lagging by a few months since there are leases expiring etc..
however now there's been a total standstill in the housing market as there are barely any sales as most people don't want to sell now for various reasons, such as they want to get the most $ possible, and they don't want to trade their 3% mortgage for 6.5% buying elsewhere etc. so this data should only show up in market in a few months, and since there's much less people moving and buying now it should push the market even higher in a few months...
the only new developments coming up are a a some on prospect, and a couple of projects on the 70 from imperial belz and vishnitz, some wont be ready for another while, but not enough to sustain the 1000 couples a year settling in lakewood.
די אייבישטער זאל געבען אסאך פרנסה פאר אלע אידישע קינדער

You're saying there's a lag in the rental market because people buy houses and only move once their lease is up?
1) that's not true IME
2) that only opens up 1 basement, and doesn't add additional supply

[fisherprice]

every move opens up 1 apt, so lots of moves opens up lots of apts. also people wait a little especially on newer neighborhoods until there's a minyan, also there's owner leasebacks which are very common in today's market...

[jye]

It also became more lucrative to rent out a basement. People who had unfinished basements were finishing them at the the current high construction prices because they were hearing about how much their friends and neighbors were making.

Definitely. There s often more elasticity in supply/demand than people realize. There can be lots of potential factors. Playgroups closing or landlords converting from playgroups or businesses to rentals because the price is so high. Homeowners who were using the basement themselves or for guests putting it on the market. Older singles staying home with parents or doubling up due to the high cost. Houses that had non Jewish tenants are now part of the Jewish rental market. There is no longer an incentive for couples or families moving to Lakewood to take advantage of affordable rents. I’m sure there are other factors as well.

[aygart]

Also a big percentage (most?) of the apartments are furnished/short term.

Makes sense that they are the first to show

[avromie7]

In these listings it looks like people are asking $2200 for a 3br/2b. That's not an all time high?

At the peak there were people asking over 2500, and some were even getting it. Most of the asking $2200 are not getting it, or they're waiting for the right person willing to overpay for their neighborhood.

My neighbor's tenant moved out recently, I watched him list his basement for $2200 and drop it by $100 every week before stopping at $1900. I assume he got anywhere between $1800-1900, this apartment would've been around $2300 a few months ago.

[Pony]

I don't understand how the apartment supply seemingly has grown. Real estate sales have decreased in the past few months (even in Jackson/Manchester/TR) i.e. people are staying put - and even people buying new homes don't have a basement to rent out (how it was previously, if a tenant moved out of a basement that often meant that he was moving to a house that had a basement apartment too - adding to the supply), since there's been no new developments recently.

Is it that more couples are moving to EY?

The answer may be that the only demographic still buying homes are those with growing families in basements. They are buying because they have no choice, they need to move to bigger quarters (this was the case for the last two families that moved to my neighborhood). So they are either making the plunge and buying or renting houses. All the others, the people flipping their NY houses and moving in and around Lakewood, downsizing older couples, investors or people buying their second home are staying put because it doesn't make economic sense to buy now.

[ae123]

Makes sense that they are the first to show

Can you please explain?
Not sure I get it.

[jye]

Can you please explain?
Not sure I get it.

I’m assuming he means that the units with the most frequent turnover are the ones who’s vacancy rate will be first to reflect the trend.

[aygart]

Can you please explain?
Not sure I get it.

Many of the tenants were couples who couldn't find a regular apartment. If there are enough for them to live in a regular one then the demand for temporary plummets.

[EliyahuF]

I’m currently a tenant paying the 2021 pricing. My contract is up and January. If I were to leave my landlord can fetch another $400 a month.
Considering the fact that I would like to stay, what’s the best Mehalech going forward to avoid a $400 increase?

[Euclid]

I’m currently a tenant paying the 2021 pricing. My contract is up and January. If I were to leave my landlord can fetch another $400 a month.
Considering the fact that I would like to stay, what’s the best Mehalech going forward to avoid a $400 increase?

Offer a $200 increase

[EliyahuF]

Offer a $200 increase

I see above a lot of the 5 percent talk. Is that a thing of the past?

[avromie7]

I’m currently a tenant paying the 2021 pricing. My contract is up and January. If I were to leave my landlord can fetch another $400 a month.
Considering the fact that I would like to stay, what’s the best Mehalech going forward to avoid a $400 increase?

It depends on the landlord, but with most landlords the best option is to say nothing and keep paying the current rate.

[Euclid]

I see above a lot of the 5 percent talk. Is that a thing of the past?

Yeah I missed the part that you're paying 2021 rates. I think you should do what avromie is advising and just stay silent

[avromie7]

I see above a lot of the 5 percent talk. Is that a thing of the past?

If the landlord lives in the house there are are almost no restrictions, if not he is likely limited to 5%.

Check your contract if it has a clause about rent increases, many have a 5% limit which would be binding.

[EliyahuF]

It depends on the landlord, but with most landlords the best option is to say nothing and keep paying the current rate.

Was thinking of that. Might be the best off

[EliyahuF]

If the landlord lives in the house there are are almost no restrictions, if not he is likely limited to 5%.

Check your contract if it has a clause about rent increases, many have a 5% limit which would be binding.

It does not mention the 5 percent. Does that put me at a disadvantage?

[imayid2]

It does not mention the 5 percent. Does that put me at a disadvantage?

What does it say regarding rate increases?

[EliyahuF]

What does it say regarding rate increases?

We didn’t discuss that. However we did agree to go to our Shuls Rav if there’s any disagreement. Just don’t want to get to that point, or do I?