All of the developers who rushed to take advantage of the astronomically rising rents in New York City's market are now wondering if they should have moved more slowly.
There are 19 residential towers under construction or recently completed in Brooklyn along a 10-block section of Flatbush. Together, they will bring 6,500 units to the market. Charles V. Bagli from The New York Times reports some landlords are already offering one to two months of free rent to attract residents.
“We’ve had a big run-up in rents,” said David Schwartz of Slate Property Group, which is developing a building at 1 Flatbush Avenue with 160 rental apartments, “but I don’t think we’ll see any significant growth in the next couple of years.”
Jonathan J. Miller, president and chief executive of Miller Samuel, a real estate appraisal and consulting firm, contends that the problem is not so much “too many units.”
“It’s too many units skewed to the upper end of the market,” above $3,500 a month in rent, he continued. “The top of the market is soft for both rentals and condos. That’s where the bulk of the new supply is coming.”