Rental market implosion in Lakewood- implications

[S209]

I saw an ad with someone offering free tickets to Israel.

If you would but open up the local publication that lists the rentals available, you would be confronted by pages upon pages of listings. In last week’s edition, there were 542 listings, spread across seventeen pages! (Yes, I counted.) A mere two years ago there was less than one full page of listings! The bulletin boards in BMG are inundated with “basement available” signs, now accounting for a majority of all signs, when not too long ago they were relegated to but small corners of the board. The “epidemic” of vacancies is so widespread that people have been coming up with creative ways to try to lure people into checking out their apartments. A recent sign on a Yeshiva bulletin actually had an inset on it that stated: “Ask about free Eretz Yisroel trip!” That’s just an indication how extensive this problem really is.


-Yona Bellar

[Zevi16]

I actually had an idea to open a business where we advertise your available rental and try promote it to rent it out and also to manage the process of renting it out. i.e. taking pictures, answering questions about it and showing it.
I would charge the owner a months rent or a fixed fee.
I saw today an ad for something similar today tho. For free. For now.

[S209]

I actually had an idea to open a business where we advertise your available rental and try promote it to rent it out and also to manage the process of renting it out. i.e. taking pictures, answering questions about it and showing it.
I would charge the owner a months rent or a fixed fee.
I saw today an ad for something similar today tho. For free. For now.

Many people hire an agent for rentals. I pay my property manager half the first month’s rent as a finder’s fee. Though idk if people in Lakewood do it for basements as much.

[churnbabychurn]

Are ppl getting violations for 2 family?

[S209]

Are ppl getting violations for 2 family?

Never heard that. Have you heard something?

[churnbabychurn]

Never heard that. Have you heard something?

Faa seems to want to make it a thing.

http://firstamendmentactivist.blogspot.com/2018/12/lakewood-5000-basements.html?m=1

[Moshe123]

Faa seems to want to make it a thing.

http://firstamendmentactivist.blogspot.com/2018/12/lakewood-5000-basements.html?m=1

Holy cow on those emails. That growth is bonkers insane and more than I was expecting. 32k estimated growth as a low-balling of residents from just new construction. Now add natural growth in existing houses and you wouldn't be shocked with the 2020 census showing Lakewood going from 92k residents to 135-140k.

כן ירבה וכן יפרוץ

[S209]

Holy cow on those emails. That growth is bonkers insane and more than I was expecting. 32k estimated growth as a low-balling of residents from just new construction. Now add natural growth in existing houses and you wouldn't be shocked with the 2020 census showing Lakewood going from 92k residents to 135-140k.

כן ירבה וכן יפרוץ

Amen!

[avromie7]

Where is the elasticity? If the apartment is $300 will everyone just take two? You might have a slight increase in outsiders moving in to town, or singles living at home who decide to take an apartment, maybe even some homeowners who take their units off the market to use for themselves for home offices etc., but by and large, other than a shift in the apartment vacancy mix (more people upgrading from 2 bedrooms to 3's and 3's to townhouses) I would imagine that demand would overall remain fairly static, so lowering price would have little immediate impact on supply/demand..

I know it's been a long time since this post, but I'll answer it anyways. Anyone who is considering buying a house will run the numbers again and see how much they can save by staying in their basement apartment for another year or so, and many will stay. If there is a shortage of basements in the future, people will be quicker to buy houses and move out of their basements. In short, there is plenty of elasticity in the Lakewood market.

[Euclid]

Bumping a fun (from today's viewpoint) thread

[yuneeq]

This has happened before and will happen again. It is all cyclical.

Good call. What do you think about this new wave?

Many developments that were supposed to be constructed are on hold if possible..  There is a major slowdown in the new construction market.

This will lead to more and more marketing to outside communities.. (I predict maybe a modox invasion)

We should also see some of the big developers go bankrupt.. but I think the investments these days are more sophisticated/syndicated.

This was absolutely spot on, both the bankrupt developers and marketing to outside communities who end up “invading” Lakewood.

[aygart]

Good call. What do you think about this new wave?

Same but rentals have a bigger issue now with a smaller portion of new housing have rentable basements.

[Moshe123]

Heh. I don't think anything I wrote here was wrong.

[avromie7]

Same but rentals have a bigger issue now with a smaller portion of new housing have rentable basements.

OTOH, BMG will be building apartment buildings on the GCU campus and a big part of the basement shortage is due to high housing prices. I know plenty of people who would've bought houses in a normal housing market who are still in their basement apartments.

ETA: However BMG will be more disciplined in their investments than the cumulative individual homebuyers. They won't invest in more apartments without studying the need.

[Sam 77]

OTOH, BMG will be building apartment buildings on the GCU campus and a big part of the basement shortage is due to high housing prices. I know plenty of people who would've bought houses in a normal housing market who are still in their basement apartments.

   
When do you think that's going to happen?

[avromie7]

   
When do you think that's going to happen?

Which part?

[Sam 77]

Which part?

Bmg building apartment's

[avromie7]

Bmg building apartment's

Considering the current state of the rental market, they're probably hurrying to take advantage.

[Sam 77]

Considering the current state of the rental market, they're probably hurrying to take advantage.

I guess that means you don't have an exact date.

[avromie7]

I guess that means you don't have an exact date.

I don't work for BMG, so I definitely don't.