A emerging trend in many major U.S. cities is the rise of "micro" apartments, or living spaces with a square footage of around 300 sq. ft. These tiny residences have their roots in cramped global cities such as Tokyo and Paris, but they have become popular in U.S. cities like New York and San Francisco. The idea behind micro-apartments is to cram as many amenities of a normal apartment so that the tenant can save money on rent. In bustling cities, it is assumed that many of the residents of micro-apartments do not spend much time in their abodes. Instead, it is used primarily as a place to sleep when they are not at work or busy enjoying life in the city.
http://observer.com/2013/04/new-micro-apartment-rfps-announced-at-chpc-luncheon/
The provided article discusses the development of micro-apartments in New York City. Although the first micro-apartment building in NYC has not even broken ground, the city is putting plenty of effort into creating this interesting residence concept. The adAPT NYC contest was recently held to select a proper developer for the city's first micro-apartment project. Monadnock Development, Actors Fund Housing Development Corporation and nARCHITECTS were the three developers that were selected for the project out of 33 total candidates.
Their building will be developed on a city-owned site at 335 East 27th Street in Kips Bay. It will stand 10 stories and hold 55 apartment units, with each unit ranging in size from 250 to 370 square feet. The article also states that "Forty percent of the units will be 'affordable,' in this case defined as having rents from $940 to $1,800 per month." According to a New York Times article, a one-bedroom apartment in the Village is more than $3,100 per month, and one-bedrooms in Manhattan list at close to $3,500 per month. Although the price per square foot may be higher in micro-apartments, it is clear that tenants will be saving on overall monthly rent.
Although I would not prefer to live in such cramped living areas, I see the benefits of micro-apartments. I expect that the lower cost and newness of the micro-apartment concept will draw more than enough interest to fill the soon-to-be developed complexes. Time will tell if this trend will continue for a prolonged period of time, but as of now, it appears that size doesn't matter!
New York Times article:
http://www.nytimes.com/2008/04/20/realestate/20COV.html?pagewanted=all&_r=0
Monday, April 22, 2013
Thursday, April 11, 2013
Property Investments
For this blog assignment, I chose to research property types in my hometown of Coppell, TX. Coppell is a suburb of Dallas, located about 10 miles northeast of DFW Airport. Latest data lists Coppell's population as 39,663 residents. The estimated median househould income in 2009 was $106,328, which was significantly above average for the rest of the state. The median house value in Coppell for 2009 was $251,162, which was right around double the average for the state of Texas. As of 2009, 62.6% of Coppell residents over the age of 25 have bachelor degrees or higher, and Coppell has an unemployment rate of 6.1%, well below the Texas average of 7%. Coppell has a highly-regarded school district, which attracts families hoping to send their kids to recgonized schools.
Based off of this data, it is clear that Coppell is an affluent community capable of supporting high-end housing. The population has increased 2.1% between 2010 and 2011, and I expect this trend to continue in the future.
Solely based off of the historic data, I would invest in single-family residential homes. There is more than adequate income to support constant home transactions, and the demand for single-family homes is greater than lower-income housing such as manufactured homes or multifamily homes.
Some of the trends that are not included in the historic data would open up other opportunities for real estate investments. One specific development is the Main Street Coppell project. This project is based in the small historic district of Coppell, which holds the original Minyard's grocery store building. The land formerly know as Carter Crowley Park, which was once a large, open recreational area primarily used for youth soccer and baseball practices, has begun a tranformation into a thriving residential and business district. On this two-acre plot of land, construction has begun on many townhomes, office cottages, restaurants, and retail buildings. If the Main Street development draws enough interest from prospective residents, it would be wise to invest in any of the properties located on the 2-acre tract.
There is also another major development that will affect properties in Coppell. The North Lake development is a 1,700 acre lot built around what used to be a public lake. Although most of this land will technically be a part of the City of Dallas, there is still some of the land that will be encompassed by Coppell city limits. Most of the development will hold apartment buildings, and there are plans to eventually build a new high school that will belong to Coppell Independent School District. As the lower-income residents begin moving in, there will be high demand for the restaurants and other retail centers near the development. In this case, commercial and retail properties would have to potential to be very profitable.
Obviously, there are plenty of opportunities for real estate investments in Coppell. Whether you invest in established higher-end residential properties or properties associated with the two new developments discussed in this entry, now is a good time to get in the real estate game in my hometown.
Based off of this data, it is clear that Coppell is an affluent community capable of supporting high-end housing. The population has increased 2.1% between 2010 and 2011, and I expect this trend to continue in the future.
Solely based off of the historic data, I would invest in single-family residential homes. There is more than adequate income to support constant home transactions, and the demand for single-family homes is greater than lower-income housing such as manufactured homes or multifamily homes.
Some of the trends that are not included in the historic data would open up other opportunities for real estate investments. One specific development is the Main Street Coppell project. This project is based in the small historic district of Coppell, which holds the original Minyard's grocery store building. The land formerly know as Carter Crowley Park, which was once a large, open recreational area primarily used for youth soccer and baseball practices, has begun a tranformation into a thriving residential and business district. On this two-acre plot of land, construction has begun on many townhomes, office cottages, restaurants, and retail buildings. If the Main Street development draws enough interest from prospective residents, it would be wise to invest in any of the properties located on the 2-acre tract.
There is also another major development that will affect properties in Coppell. The North Lake development is a 1,700 acre lot built around what used to be a public lake. Although most of this land will technically be a part of the City of Dallas, there is still some of the land that will be encompassed by Coppell city limits. Most of the development will hold apartment buildings, and there are plans to eventually build a new high school that will belong to Coppell Independent School District. As the lower-income residents begin moving in, there will be high demand for the restaurants and other retail centers near the development. In this case, commercial and retail properties would have to potential to be very profitable.
Obviously, there are plenty of opportunities for real estate investments in Coppell. Whether you invest in established higher-end residential properties or properties associated with the two new developments discussed in this entry, now is a good time to get in the real estate game in my hometown.
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