Olde Town Rental Market Update

 

 

 Hi, Today we are talking about a rental market update for the Old Town neighborhood.

 

Overall, in Old Town, we see rental rate rising.  We see young professionals increasingly being tenants in the Old Town neighborhood. They want to be close to downtown work. We’re seeing a trend that buyers and tenants tend to be overwhelmingly young and female. Tend to be young professionals.  And we’re also seeing more families with children moving into the neighborhood.  

In the video you’ll see a diagram of the rent rate curves.  The curve can help you visualize rental rates as a function of size, so you  can deduce that if you have 500 SF apartment, on average your guessing about 80 cents a foot.

The next chart is a diagram of rent per SF against average score–we gave each unit a ranking from one to five for condition and location.  And so we averages those two numbers together to give us and average score and of course, you can see here that there is a correlation between location and the rental rate.   Now, it’s not as tight as you would expect. so there are some people that are leasing units that are not quite that nice or not in a great location and their still getting $1.05 a square foot.

You know, so I think would tell you if it’s not a perfect market in Old Town and that there’s a lot of demand and sometimes people are making due with units that aren’t quite that nice.

The overall trend of the rental rates is rising, so here you see that over the past four years the rental rates have gone from an average of 80 cents a square foot to about 87 cents a square foot. So your seeing slow and steady increase in the rental rate.

We also have a shown the changes in the rent curves over time.    You see a for a 500 square foot apartment it would give you about $1.10 and then these are the two curves for 2019 and 2020. So you see pretty evenly spread here. We actually removed a few rentals form 401 Broad, listened to their legacy, rents, they actually brought the curve down so when you remove those outliers, the curve actually fits pretty steadily in there.

So, that is our Old Town rental market report. Overall, a great trend, we are seeing a lot of good things happening in the neighborhood.

We would love to hear from you. What are you seeing Downtown?  What are you experiencing with rental rates? Please like and share, comment below, subscribe. We’d love to hear from you and thanks for watching, and have a great day.

 

3rd Quarter 2019 Olde Town Market Update

There are a lot of good things happening in Olde Town!  I had the privilege of turning over the role of President of the Olde Town Neighborhood Association to Bob Trescott, who’s been serving as Vice President.  As the father of five and brand new twins, I needed to trim my commitments, but I was encouraged to see lots of new and excited people with fire and energy to move the neighborhood forward!   

As far as real estate goes, many homes are under renovation and we’ve seen some notable sales driving up the prices.  The Renaissance Apartments at Third and Broad were foreclosed on by HUD last week, and likely will be sold as market-rate apartments in the next few months–that will be great for the neighborhood. We’ve definitely seen the prices rising–in 2016 and 2017 the average price per foot was (38) per square foot, and in 2019 so far it is (72) per square foot!  We are definitely seeing Gentrification is coming to the neighborhood. Also Olde Town Apartments is continuing to renovate and lease units.  

 

Recent Notable Sales in Olde Town:

102 Third Duplex, Sold to Jeremy Rueggeberg for $165,000 on 5/16/19

222 Ellis, Sold to Kelsey Kalyta for $122,870. (Not yet Recorded, should be soon)

220 Broad Sold to James Demons for $61,465.  They are already renovating and this will be a great home.  

224 Greene, Sold to Emily Beatty for $139,000 (Not yet Recorded, should be soon)

235 Broad. Sold to Shivaun Delisser for $115,000 (Not yet Recorded, should be soon)

Under Contract: 307 Broad.  This was listed by Atul Sinha, appears to be under contract at almost full price.

Under Contract: 224 Broad.  This duplex is under contract at almost full price, and should be closing in the next two weeks. 

 

Rents are also rising.  We’re estimating a $0.20 PSF increase on average across rental units in Olde Town over the last 2 years.  

 

Here’s links to two properties we have listed in Olde Town:

407 Third Street

260 Reynolds Street 

 

What are you seeing in Olde Town?  Are you a resident or tenant?  How has the neighborhood changed?  What changes have you seen?