Do you know one or more of the many would-be buyers who can’t afford to enter the housing market? Given still-high interest rates and a dearth of existing homes, they are in a tough spot. But for some of these people, there’s an offsetting upside.
They might be able to justify an amenitized, higher-end apartment community, and wind up enjoying a superior quality of life than they might in a for-sale first home.
A study out today from CBRE revealed what the authors described as “a significant affordability gap” between homeownership and renting. There exists a yawning gulf of 35% between average monthly mortgage payments for new homes and rents for apartments, fueled by the 75% surge in average mortgage payments since late 2019. That wave, CBRE stated, has created “a steep financial barrier to homeownership for many households.” The premium to buy a home is expected to fall in coming years due to interest rate and home price changes. But, CBRE reported, “is it expected to remain wide enough to keep many people in the rental market for longer.”
This reality hasn’t been lost on apartment building developers. An increasing number of upper-crust rental buildings in U.S. cities are duking it out to appeal to a renting cohort prizing aesthetics, convenience and distinctive in-house experiences.
Cases in point: The for-rent residential buildings The Ellery in New York City and 2000 Biscayne in Miami, which both quickly topped the half-leased mark. The Ellery notched the 50% milepost in November, following a June launch, while 2000 Biscayne reached that benchmark in late August, not long after inaugurating leasing in May.
The Ellery
Bearing an address at 312 West 43rd Street in Manhattan, the Handel Architects-designed building climbs 32 stories and features 330 studios to two-bedroom luxury residences with spacious, sunlit floor plans and panoramic views of Manhattan and the Hudson River. Developers Taconic Partners and National Real Estate Advisors intended The Ellery to offer a serene and calming urban retreat at the city’s center.
Among the amenities: A full-service fitness center, residents-only spa, upscale coworking spaces including reservable conference rooms, game room, social lounge, sunroom and private dining room featuring wine fridge and available catering.
Outdoors, The Ellery offers a sprawling rooftop with outdoor pool and cabanas, as well as “The Garden,” a frondescent, park-like oasis above Manhattan.
“Renters in today’s luxury market want to be wowed, which inspired us to focus on stunning views in every direction, hotel-level amenities and museum-level art,” says Colleen Wenke, Taconic Partners’ president and chief operating officer. “Our goal at The Ellery was to appeal to people who embrace the city but want a place to recharge at home.”
2000 Biscayne
Situated at 2000 Biscayne Boulevard in the Edgewater neighborhood of Miami, the Kushner and PTM Partners luxury rental residence stands 36 stories, and features 420 apartments in a mix of studio, one-, two- and three-bedroom floor plans extending from 500 to 1,500 square feet.
Designed by Kobi Karp Architecture, the building delivers outdoor amenities including pool, sunbathing deck and cabanas; outdoor gym and yoga area overlooking Biscayne Bay and sprawling community lounge areas with al fresco dining areas. Indoor amenities include a 5,000-square-foot fitness center, wellness spa with steam, sauna and massage treatment rooms, TULU room for on-demand rental access to living essentials, gaming club room, children’s play area and pet spa.
“Renters increasingly place a premium on health and wellness, productivity, calm and convenience, all values ingrained in the luxury amenities and refined finishes of 2000 Biscayne,” says Nicholas Pantuliano, COO and CDO of PTM Partners.
The Noble
The City of Brotherly Love is not to be outdone when it comes to new, amenity-rich apartment buildings.
Located at 2000 Spring Garden Street in Philadelphia, The Noble is a 13-story, 360-unit building developed by National Real Estate Advisors and Kushner Real Estate Group. Outdoors, residents can take advantage of a year-round 75-foot pool with skyline views and deck and 10,000-square-foot green space.
Indoor creature comforts include a 17,000-square-foot City Fitness Gym, coworking space, conference room, amenity lounge and party room. The Noble also offers an art program highlighted by a 1,365-square-foot mural by artist Douglas Hoekzema.
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