Something easier to read: Westchester County rental rates rise 9

Westchester County rental rates rise 9 percent

October 5

Strong demand for rental apartments in Westchester County has driven overall rental rates in the first half of 2007 up by 9 percent year over year, according to a new report by real estate brokerage Cushman & Wakefield.

The average rent for units of all types, from studios to multiple bedrooms, reached a record $1,788, the report said. Occupancy stood at 97.1 percent in the first half of the year, compared to 96.7 percent for all of 2006.

Monthly rents run from $1,500 to $2,000 for high-quality one-bedroom apartments, and $2,300 to $2,900 for two-bedroom units.

The brokerage noted that sales of houses and condos are slowing in the market, a trend that would boost demand for leased space.

Cushman & Wakefield said that 40 percent of the 344,000 households in the county are renting the places where they live. A projected 2.2 percent increase in households over the next five years would mean a need for 3,050 additional apartments, the report said.

The difficulty in building new housing in the region, however, is constraining that growth, the brokerage said. Twenty-one projects accounting for more than 5,800 condos and rental apartments have been proposed in the county, but approvals can take five to 10 years, Cushman & Wakefield Senior Director Jose Cruz said.

One consequence of the trend is the demand by investors for apartment projects in the Lower Hudson Valley.

In March, AvalonBay Communities paid $37.8 million for Crystal Hill Club in Pomona, a 168-unit luxury project developed by Gin*****urg Development Group, the brokerage said. In Scarsdale, the 40-unit Stone Ridge Manor sold in March for $19.5 million. The 108-unit Diplomat Gardens in Piermont sold for $13.3 million in March.

Cruz said many apartment buildings in Westchester are family-owned, unlike other suburban areas in the metro New York region where institutional ownership prevails.

“When a property comes on (the market), it’s a feeding frenzy,” he said. “I think a lot of the landlords realize they have gold in their hands.”