High End Rentals: A Changing Market

The city of New York is home to a large population that includes everyone from the rich and famous to everyday people. And, in all these years, it has earned the reputation of being a city of plenty. Properties in Manhattan are probably some of the highest priced in the entire country. It is home to some of the wealthiest people in the world, and certain neighborhoods are in a very real sense billionaire territory. However, in recent times things are beginning to take a turn. There seems to be a surplus of luxury condos in the city, but not enough buyers. Because of this, the market is veering from a home-owned base to a more rent-based set up.

This shift has given rise to a boom in rental buildings, with over eight thousand units being added to Manhattan and Brooklyn this year. These buildings are unique not only in their outlook, but also in their appearance. And while renting is their main market, the prices are still pretty steep with some studios renting out for as much as five thousand dollars. The owners of these properties are quite unflinching, even with the current drop in the market. They believe that the city is currently at its best both in terms of safety and aesthetics, which will encourage people to move there.

So confident are they in the rental market that they have been going all out with the design and architecture of these buildings. One such building is the Via 57 West, which has been designed by the Danish company Bjarke Ingels Group. The schematic of this building is odd, to say the least, with the architects giving it a tetrahedron-like appearance. This means that instead of roofs, the building has tapering walls. This unusual design was given the green light to increase the artistic appeal of the city.

The Via 57 West is only one of such off-beat architectural designs. Most of the new high end rentals that are cropping up have a similar outlook and feel; unique in their own way to attract potential renters. The same is true in Brooklyn as well. But, all this comes at a time when there are a lot more vacant apartments in the city. A vacancy rate of two percent is usually indicative of a weak market, however this rate has seen an increase to about 2.74 percent. All this makes it a strange time to add more units to the city.

However, this is possibly good news for renters. The dip in the market is indicative of reduced rental prices. And while the current prices are still quite high, they are a lot lower than what they were forecast to be at this time just a few years ago. The extent of the drop in rents can only be established once the rental offices of these new additions are in action. So, while this new trend is set to play, another factor that also affects how things work is a new generation of young renters. How the clogs of the wheels are going to fall together is something that only time will tell!

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