We all know that the housing market hit a low spot in the past few years, but why does everyone have to take a loss? The busted up housing bubble definitely did some good for renters hoping to move into new digs. In fact, plenty of unsold condos in many cities across the country are going to renters for a great price simply because they could not be sold.
This is a great opportunity for renters, who need to find deals on new luxury apartment buildings on a budget. While it isn’t bargain living per se, it is a lot cheaper than moving into these types of buildings under other circumstances.
One city where this trend is prominent is New York City. You can move into a 600-square foot studio apartment in Frank Gehry’s New York by Gehry for just $2,630 per month. The building is the Big Apple’s tallest residential tower, but it is also the tallest residential building in the world. Renters moving in now will also get a good deal for a long time as this particular building happens to be rent-stabilized.
Why is renting such an attractive solution nowadays? People like the idea of not having to commit to a long-term mortgage in the unstable housing market. Moving into a condo means that you can rent for a lower price which also allows for more money in your pocket. This opportunity lets renters experience buildings they may not otherwise have the chance to live in.
Miami is yet another city in which the practice of renting luxury apartments for less is a rising trend. The south Florida city has one of the highest numbers of empty condo buildings. Near the end of the housing boom, there were quite a few buildings completed but people just couldn’t afford to move in as owners. So, the condos have been rented out.
Now, renters are enjoying waterfront views and a trendy urban lifestyle that they never were able to have before. Many of these renters are young college grads and urban professionals. About five years ago, you wouldn’t have seen this demographic shelling out their hard-earned money for these apartments. Today, a waterfront condo in downtown Miami goes for about $2,700 each month.
So, how is all this happening? In some cases, housing developers are turning the condos they once sought to sell, into rentals available at lower prices. In other cases, investors are coming in, buying up the units, and renting them out to make some money. Either way, renters are getting to move into great buildings in some of the more expensive cities across the United States.
We’ve all heard of a buyers’ market and a sellers’ market – but we guess this is actually a renters’ market!
Jon Huser
