Developer’s Digest?: This Week's Top Development News
Federal Reserve Makes Second Interest-Rate Cut Since September
November 7, 2024
The U.S. Federal Reserve cut the baseline interest rate by a quarter-point to 4.5%-4.75%, marking its second recent reduction. This follows a larger, half-point cut in September after a series of 11 rate hikes from 2022 to mid-2023 aimed at controlling inflation. The Fed cited steady economic activity, easing labor conditions, and near-target inflation as factors behind the move. The cut coincides with Donald Trump’s impending second presidential term, sparking uncertainty over economic policies, particularly tariff increases. Real estate professionals hope lower borrowing costs will boost property values and sales, though impacts may vary by market and property type.
Source: CoStar
Why Mortgage Rates and An Election Couldn’t Slow Down New Development
November 6, 2024
In October, new-development contracts surged, hitting a high for the year with 293 deals, primarily in Manhattan and Brooklyn, according to Marketproof. This growth was led by luxury projects from Naftali Group and increased demand for high-end properties. Despite mortgage rates more than doubling from pre-pandemic levels, luxury buyers in New York City, particularly Manhattan, remain active, often unaffected by financing costs. Manhattan and Brooklyn's contracts saw substantial year-over-year growth, while Queens experienced a slight decline.
Source: The Real Deal
What Trump’s Win Could Mean for Housing, Climate and Immigrant Communities in NYC
November 6, 2024
Donald Trump’s return to office could bring challenges for New York City's housing, with potential cuts to federal funding impacting affordable housing. Advocates worry about possible reductions to HUD budgets, which support public housing repairs and affordable housing construction through programs like Community Development Block Grants and HOME. Trump's platform emphasizes tax incentives for new home buyers and reducing regulations, though details are sparse. Additionally, his immigration policies could hinder the construction workforce, essential for addressing housing shortages. With Republicans controlling the Senate, hopes for increased federal support for public housing, such as NYCHA's Section 9 repairs, are uncertain.
Source: City Limits
Developers to Convert Marriott Site Near LaGuardia Into Affordable Housing
November 7, 2024
ASAP International Holdings plans to convert part of its LaGuardia Marriott site into a mixed-use, affordable housing development in East Elmhurst, Queens. The project will feature a 375,000-square-foot, 13-14-story building, preserving the hotel while adding a 98-unit affordable senior housing complex with community space for Elmcor Youth & Adult Activities. The development will include 437 units overall, 126,000 square feet of open space, and retail. This is ASAP’s latest NYC venture, aligning with broader residential growth in Queens.
Source: Biz Journals
Downtown Brooklyn to Get 77 More Apartments
November 7, 2024
A Williamsburg developer has proposed a 22-story high-rise at 362 Livingston Street in Downtown Brooklyn, aiming to replace a mixed-use building with 77 apartments. This development is part of a broader project by Yitchok Katz’s Developing NY State, which includes two additional towers nearby. The three buildings will collectively add 269 units, with shared amenities across the structures. The developer, associated with Goose Property Management and Rabsky Group, acquired the properties in 2022. Plans detail parking for 54 cars and 135 bikes, though no construction timeline is set yet.
Source: Crain's New York Business