They're back: Luxury renters are on the rise in New York
Stephanie Landsman | @stephlandsman
22 Mins Ago
CNBC.com
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Residential rental apartment building in New York.
Scott Eells | Bloomberg | Getty Images
Residential rental apartment building in New York.
After renting a two-bedroom apartment on New York City's Lower East Side for several years, 32-year old Lea Ann Willett and her husband craved more amenities and space, and floors that didn't creek.
Buying a condo in Manhattan wasn't an option. The Willetts wanted to avoid dealing with co-op boards and the general risks associated with owning in the New York market.
So the couple branched out and decided to rent a two-bedroom apartment in a brand new high-end building in Brooklyn Heights—equipped with a washer and dryer in each unit, stainless steel appliances and a virtual doorman. Plus, the subways and an Equinox gym are just steps away.
"It is such an investment in your health and well-being," said Willett, who loves the idea of being the first person to live in the apartment. "It definitely felt like the right move."
Read MoreRent a home or buy? Depends where you live
The two-bedroom units in the complex start around $5,000 a month. But the price tag didn't deter them.
More renters like the Willetts are willing to pay several thousand dollars for apartments. Renting, often viewed before the financial crisis as throwing money away, is making a comeback.
A better economy and an influx of technorati into the region appear to be partly behind the change of heart.
The area's high-tech employment has surged 21 percent since 2006, according to a report by the Partnership for New York, a group representing large businesses. That's about double the pace of the nation's growth rate in tech jobs.
Read MoreConnecticut estate sells for a record $120 million
"The locals and high-end tech workers that are coming into the city for new job opportunities are leading the charge," said Aleksandra Scepanovic, co-founder and managing director of Ideal Properties Group, which focuses on the Brooklyn market. "About 30 percent of our rental business is in the high-end product."
She finds a lot of people don't have the luxury of wealth to purchase in New York City nor the urge to own like previous generations. These folks are longing for luxury without the commitment of buying.
"I don't think there is hesitation to buy, but there are a lot of reasons to rent vs. buying or buying vs. renting," said Jim Gricar, president of Halstead Property. "Younger people come for a job and rent so they can figure out where they want to live."
Stephanie Landsman | @stephlandsman
22 Mins Ago
CNBC.com
2
COMMENTSJoin the Discussion
Residential rental apartment building in New York.
Scott Eells | Bloomberg | Getty Images
Residential rental apartment building in New York.
After renting a two-bedroom apartment on New York City's Lower East Side for several years, 32-year old Lea Ann Willett and her husband craved more amenities and space, and floors that didn't creek.
Buying a condo in Manhattan wasn't an option. The Willetts wanted to avoid dealing with co-op boards and the general risks associated with owning in the New York market.
So the couple branched out and decided to rent a two-bedroom apartment in a brand new high-end building in Brooklyn Heights—equipped with a washer and dryer in each unit, stainless steel appliances and a virtual doorman. Plus, the subways and an Equinox gym are just steps away.
"It is such an investment in your health and well-being," said Willett, who loves the idea of being the first person to live in the apartment. "It definitely felt like the right move."
Read MoreRent a home or buy? Depends where you live
The two-bedroom units in the complex start around $5,000 a month. But the price tag didn't deter them.
More renters like the Willetts are willing to pay several thousand dollars for apartments. Renting, often viewed before the financial crisis as throwing money away, is making a comeback.
A better economy and an influx of technorati into the region appear to be partly behind the change of heart.
The area's high-tech employment has surged 21 percent since 2006, according to a report by the Partnership for New York, a group representing large businesses. That's about double the pace of the nation's growth rate in tech jobs.
Read MoreConnecticut estate sells for a record $120 million
"The locals and high-end tech workers that are coming into the city for new job opportunities are leading the charge," said Aleksandra Scepanovic, co-founder and managing director of Ideal Properties Group, which focuses on the Brooklyn market. "About 30 percent of our rental business is in the high-end product."
She finds a lot of people don't have the luxury of wealth to purchase in New York City nor the urge to own like previous generations. These folks are longing for luxury without the commitment of buying.
"I don't think there is hesitation to buy, but there are a lot of reasons to rent vs. buying or buying vs. renting," said Jim Gricar, president of Halstead Property. "Younger people come for a job and rent so they can figure out where they want to live."
