MarketWatch: Weekly Real Estate Update for Riverdale, Bronx – 4/3/2023 – 4/10/2023

Did You Know?

David Feldman of COMPASS Philadelphia shares that The Philadelphia housing Trust Fund has received $221 million since being established in 2006, all funded by fees from deed and mortgage recording fees, with additional funding in the past few years from expiring tax abatements from recent new construction, specifically, “year 11” after the initial 10 years tax abatement expires, so the first year of new real estate tax revenue from that construction goes to the Housing Trust Fund. Since 2006, the Housing Trust Fund, all funded by local market housing activity, has assisted 62,000 low- and moderate-income households, including subsidizing new affordable housing units, providing grants for first time homebuyers, reducing shelter costs for homelessness, and in large part keeping people in their homes with rental assistance and home repairs.  In years when real estate activity declines, there is less money to assist low- and moderate-income residents.

The No. 1 neighborhood in America has once again been determined to be this 5,400-person locale just outside of Philadelphia. Chesterbrook has a 1.5% poverty rate, a 2.4% unemployment rate and has, for the 4th consecutive year, taken the top slot in ranking site Niche’s survey of the best place to live in America. Several factors were considered by Niche in determining which of 17,932 American locales deserved the gold: Affordability, walkability, area public schools, neighborhood diversity and the local housing market. In second place came Arlington, Virginia’s Colonial Village neighborhood, which was built in the late 1930s.   Top 10 best places to live in the U.S. 2023Chesterbrook, Philadelphia, Pa.
Colonial Village, Arlington, Va.
Ardmore, Philadelphia, Pa.
Hyde Park–Spanishtown Creek, Tampa, Fla.
Penn Wynne, Philadelphia, Pa.
City Center, Santa Monica, Calif.
Cambridgeport, Mass.
North Quarter, Orlando, Fla.
Devon, Philadelphia, Pa.
Great Neck Gardens, Long Island, N.Y.(CNBC)

Offices are not the only commercial real estate out there, although they are a very meaningful and important element, especially in big cities:  the office sector is only one part of commercial real estate, albeit a large one, and the others are in unusually good shape. Vacancy rates in warehouse and industrial space nationally are low, according to Cushman and Wakefield. The national retail vacancy rates, despite the migration of shoppers to online shopping, is only 5.7%. And hotels are garnering record revenue per available room as both occupancy and prices surged post-Covid, according to research firm STR.  Banks’ commercial real estate lending also includes apartment complexes, with rental vacancies rates at 5.8% in Federal Reserve data. (CNBC)