In a recent report, more than two-thirds of adults in the United States do not have enough savings for a down payment.
And that problem gets magnified in Brooklyn, where the median home price is $770,000 and the average buyer would need approximately $150,000 for a 20% down payment.
Today’s home buyers have the income and credit needed to borrow a mortgage but due to student loans and high rents, have very little left over to save for a down payment.
What will New York elected officials do to keep collecting lucrative tax revenues from real estate transactions?
In a recent study of incomes filed on tax returns in 2006 revealed that 50% of New York City’s population earned $20.7 billion dollars, accounting for 7.4% of the City’s total income reported.
In 2014, the most recent year where data is available, saw 50% of New York City’s population earn $17.76 billion dollars, or 5.6% of the City’s total income reported by its residents.
In just 8 years, half of NYC taxpayers earned $2.94 billion less in a period that saw rents and home values rise at a double-digit pace.
Is NYC’s cost of living shrinking the “First Time Homebuyer” population real estate agents depend on?
Big Block Realty, a 100% Real Estate Brokerage, was named the 26th fastest growing privately held company on the INC 500 list in 2016. Their business model attracts mid and top-level producers in the markets where they have a presence.
And the trend appears to be growing nationwide, as 3 of the top 11 spots on the Real Trends 500 list were held by brokerages offering a 100% commission business model.
In the rapidly changing real estate environment, more broker owners are adopting business models that push the cost and risk of generating revenue back to the agent.
How long will traditional commission split brokerage offices in New York wait before making the switch to this popular real estate business model?
Silicon Valley and Wall Street are convinced they can replace the real estate agent with modern technology and Hedge Fund money. And while past efforts by the same forces may have ended in complete failure, this time might be different.
Like other industries, the Internet is changing the real estate business by giving companies the opportunity to aggregate data into a business model that eliminates market risk for a consumer selling their home.
Open Door, a company whose sold nearly 6,000 homes since starting in 2014, has managed to dominate certain markets without a brokerage office or agents.
Will the Real Estate Agent finally disappear from the retail landscape like the Record Store?
In the midst of the worst housing crisis in New York City history, the Housing, Preservation and Development Agency is being probed by the Department of Investigation for how they mismanaged a rent-to-own program that gave tenants the ability to buy an apartment for as little as $250.
Staff responsible for supervising buildings and visiting sites that were part of the program were routinely submitting false reports.
How many of those apartments wound up in the hands of investors?
Each week THE STREET brings you 5 things moving New York real estate.
Which of the 5 in this edition could affect your business plan? How prepared are you to adjust to any of these conditions in the face of evolving factors on the ground?
Will your business be able to thrive in the current economic environment?
Forward this to someone you know who could benefit from the information in this edition and Share it with others on your favorite social network using the links below.