New York City landlords fighting against their mayor’s rent freeze, a study that finds homeownership can be a relationship killer, and a tribute to a colorful San Francisco commercial property executive. From the wild and wooly world of real estate, here are our Hits and Misses for the week of July 20-24.
Hit: Defrosting the Rent Freeze. Two thumbs up are extended for the landlords who are suing the New York City Rent Guidelines Board over their recent freeze on rents in subsidized housing. The landlords argued the board’s vote for a rent freeze was a “sham” because the outcome was predetermined by Mayor Zohran Mamdani, who campaigned on forcing a freeze and appointed board members allied to his goal. The lawsuit also sought to justify a rent increase by citing the board’s data on how landlord operating costs increased 5.3% in the past year. If the lawsuit succeeds, this will be a well-deserved blow to Mamdani’s socialist agenda.
Miss: Heartbreak Houses. One of the saddest data reports we’ve come across recently was a study from Clever Real Estate that found roughly one-quarter of people who purchased a home with a partner said their home is more likely to still be in their life in 10 years than their relationship. Ouch! The report found 29% of co-owners said the home gave them a greater sense of security than their partner does. When forced to choose, one in six (16%) would rather keep their home over their partner – and that figure that is higher among millennials (25%) and unmarried couples (28%). Even worse, 24% of co-owners have fantasized about living alone and 5% admitted to downloading a data app due to the stress of owning a home with their partner. Perhaps Diana, Mary and Florence said it best: Baby, baby, where did our love go?
Hit: A Better Approach to Data Centers. This week, Nebraska Gov. Jim Pillen signed an executive order that prevents large-scale data centers from receiving state business tax incentives. According to KOLN, the state’s data centers received $519 million in estimated property tax exemptions since January 2021 – those exemptions are capped at 2%. Pillen is also establishing a task force to review data center policy. However, he is not following the lead of New York Gov. Kathy Hochul in enacting a one-year ban on the creation of new large-scale data centers. “We’re simply talking about making sure that we do what’s best for all the Nebraskans, that we do best for our land and we do best for our water,” Pillen said. Whether we like it or not, data centers represent the future of American computing and a growing commercial real estate sector, and Pillen is wise to ensure their growth is accomplished in a responsible manner that is free from partisan demonization.
Miss: Can You Be a Little Less Vague? Our pal Bill Pulte took to his personal X account this week in his guise as the chairman of Fannie Mae and offered this message: “We had a perfect board meeting today at Fannie Mae. The business is truly operating like a business. Grateful for a strong team, and an even brighter future for ALL at Fannie Mae.” Okay, and…what does this mean? That it hasn’t been operating like a business during Pulte’s first year as the self-appointed chairman? And if things at Fannie Mae are so copacetic, when can we expect to see it released from federal conservatorship, along with Freddie Mac (which also has Pulte as chairman)?
Miss: Wrong-Way Altruism. A big thumbs down goes to the Department of Housing Development (HUD) – along with the Departments of Health and Human Services, Education, and Labor – for wasting time in a federal agency Memorandum of Understanding (MOU) with the NFL that focuses on “youth engagement through sport.” This MOU directs the departments to “identify program sites that connect structured youth programming to academic participation, healthy living, and workforce pathways.” HUD Secretary Scott Turner, a former NFL player, said the departments will use the MOU to “equip youth with the tools they need to lead successful lives.” Uh, can someone please tell Turner that there are plenty of state and local programs designed to encourage youth sports programs? That’s not HUD’s job.
Miss: Costly College Housing. If the federal government was serious about helping young people, perhaps there could be a solution to address the high cost of college student housing. A study by student loan lender ELFI examined housing costs at 150 colleges and universities nationwide and found students pay an average of $8,828 per academic year for campus housing. ELFI’s analysis found that annual housing costs ranged from $2,590 to $16,564, depending on the institution and location. The study also found most colleges require first-year, full-time students to live on campus, thus limiting their ability to secure potentially less expensive off-campus housing. Of course, off-campus housing usually has 12-month leases requiring students to pay for housing during periods when they are not enrolled in classes. Perhaps we could come up with some innovative solutions if HUD Secretary Turner put down his football and put on his thinking cap.
In Memoriam: Clint Reilly. This week, we learned of the passing of Clint Reilly at 79. Reilly was a true American success story – his father was a milkman, his mother sold hot dogs at a ball park, and through hard work and determination he grew up to be one of San Francisco’s most influential citizens. Reilly had multiple careers as a political consultant, as a newspaper publisher, and as a commercial real estate executive. His company, Clint Reilly Landmark Properties, owns iconic office and hospitality properties including San Francisco’s historic Merchants Exchange Building. Reilly had his shares of controversies and setbacks, including an unsuccessful campaign to become mayor of San Francisco. But ultimately, he was a larger-than-life figure who had a profound impact on his city’s social, economic and political environments.
Phil Hall is editor of Weekly Real Estate News. He can be reached at [email protected].
0 Comments