Rates Hit Historic Low

Average interest rates for new multifamily mortgages fell to 4.27 percent, according to the 2015 Rent Guidelines Board Mortgage Interest Survey released yesterday. The rate is the lowest since the RGB started tracking it in 1981. The report also found that 1,356 buildings with stabilized apartments were sold in 2014, down 5 percent from the year before. Average vacancy and collection losses in stabilized buildings fell to 3.25 percent, also the lowest in survey history.

The RGB also released its annual Income and Affordability study, reporting that tenants’ average gross rent to income ratio remained 33.8 percent, essentially unchanged since 2011. The number of non-payments actions decreased 3.4 percent and the number of evictions ordered fell 6.9 percent.

The State Budget approved early April 1st may mean some new transportation alternatives and development opportunities in the Bronx. New funding was provided for four planned Metro North stations at Co-op City, Morris Park, Parkchester and Hunts Point. The budget also extended the Brownfields tax credit program 10 years, but limited the availability of new credits in New York City except for sites with affordable housing or dire economics.

Affordable or not, we definitely are going to have a housing shortage for awhile, NYYimby reports. We have almost hit our projected 2020 population of more than 8.5 million five years early.

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