Baby boomers are vying with millennials for rental properties, and LA’s hungry for apartments
Jul 24, 2015
Here are the news stories you might have missed this week:
The New York Times: Developers hope to change the face of transit hub in Jamaica, Queens
Jamaica, Queens is a neighborhood in transition. This transit hub — home to an AirTrain connection from JFK to Manhattan, subway stops, bus lines, and an LIRR exchange — has long been marred by poverty and blight, but developers see Jamaica as a New York neighborhood that can make a great CRE reintroduction. Developers and investors are eyeing Jamaica because its land is more affordable than Manhattan, and it’s a transit hub into and out of other New York City boroughs. Though the neighborhood might not follow the path Brooklyn has taken, hotel, retail, and office developers believe that the new projects in Jamaica will be a “game-changer.” Read more about the plan to improve this Queens neighborhood at NYTimes.com.
GlobeSt.com: Room by room, hotel owners build up RevPAR
Investors think the hotel industry is leaving money on the table. Hotel owners in Washington, D.C. and Key West have poured money back into their new properties — through room upgrades and the addition of restaurants and bars — in order to boost RevPAR. These investors believe the hotel industry is behind other asset classes, and hope renovation will speed industry recovery. By upgrading rooms, suites, and other amenities, hotel investors can benefit from higher RevPAR. Learn more about this hotel trend at GlobeSt.com.
Bisnow: Why 22,000 new units is nowhere near enough for Downtown LA
Does the multifamily segment in Downtown Los Angeles have room to grow? Plenty of people think so. Though the number of multifamily units has tripled in the past decade and another 22,000 will come online soon, many LA-based real estate professionals still believe there’s a shortage of apartments in Downtown Los Angeles. Some neighborhoods, like Chinatown, weren’t on anyone’s radar until recently, and now investors and developers are scouting every neighborhood, hoping to find new opportunities to add units. Because Downtown LA is booming — there is also more office space, hotel rooms, and retail stores on the way — developers think the area is ripe for new multifamily construction or redevelopment. Read what developers are saying at Bisnow.com.
Bloomberg Business: Boomers competing with millennials for U.S. urban rental housing
Millennials have competition — baby boomers. Though young people are known as the renting generation, more people 65 and older are opting to rent, which might cause the next wave of multifamily construction in U.S. cities. Rental vacancy rates are already at historical lows and rents are up. The trend of baby boomers selling single-family homes and moving into urban apartments is also changing construction habits, as developers are thinking about amenities that appeal to boomers with more wealth. Visit Bloomberg.com to read more about the rental fight between boomers and millennials.