Page 6 - NY Cooperator September 2020

6 THE COOPERATOR — SEPTEMBER 2020 COOPERATOR.COM Cooperator.comFrom Compared to previous generations, millennials (those born between 1981 and 1996, give or take) have a conspicu- ously low rate of homeownership. While the ranks of mil- lennial homeowners have expanded slightly over time, the numbers still fall far below those of preceding generations. According to the latest data from the U.S. Census Bureau, the homeownership rate among that age cohort stands at just 39.5%, while the national homeownership rate is 63.9%. Re- search from the Urban Institute suggests that a variety of over- lapping factors contribute to the disparity, including crushing student loan debt, lack of affordable housing, delaying mar- riage (often because of the aforementioned debt,) and geo- graphic preferences. While millennials helped boost urban growth after the Great Recession, in recent years, that trend has reversed, with millennials leaving big, expensive cities for smaller, more af- fordable markets—or not even moving to cities in the first place. The ongoing pandemic will most likely add fuel to this trend; after all, what’s the point of paying top dollar to live in a city where you can’t actually enjoy many of the social and cultural activities that justify the high cost of living there? And this says nothing of the job loss, reduced hours, and general economic and financial uncertainty that so many now face thanks to the coronavirus. Millennials may trail behind overall when their home- ownership numbers are compared with older Americans, but the gap does depend somewhat on the market in question. For example, the Midwest—notably Iowa and South Dakota, which have the highest rates of millennial homeownership in the country, with 53.7% and 51.5%, respectively—has a much higher percentage of ownership in that age demographic than New York, California, or Hawaii, whose rates are all below 30%. To find out where millennials are buying homes, research- ers at home services marketplace Porch analyzed the latest data from the U.S. Census Bureau, the Bureau of Economic Analysis, and real estate search site Zillow to rank the home- ownership rate among millennials across metropolitan mar- kets nationwide. To improve relevance, only metro areas with populations of at least 100,000 were included in the analysis. In the event of a tie, the metro with the larger number of mil- lennial homeowners was ranked higher. Researchers also cal- culated the median home price, the typical monthly mortgage payment, median earnings for millennials working full-time, and the cost of living. The analysis found that in New York, only 26.6% of mil- lennials own their homes. Among all large metropolitan areas (those with more than 1 million residents), New York has the 5th lowest millennial homeownership rate in the U.S. Here is a summary of the data for the New York-Newark-Jersey City, NY-NJ-PA metro: • Millennial homeownership rate: 26.6% • Median home price: $489,137 • Monthly mortgage payment: $1,735 • Median yearly earnings for millennials working full-time: $51,000 • Cost of living: 24% above the national average For reference, here are the statistics for the entire United States: • Millennial homeownership rate: 39.5% • Median home price: $251,598 NY: 5th-Lowest Millennial Homeowner Rate in U.S. Student Debt, High Costs, & Economic Uncertainty to Blame BY THE COOPERATOR STAFF New Tools for Housing Equality Bill Gives NY Greater Power to Punish Brokers Who Discriminate BY HANNAH FONS According to a recent notice from New energy efficiency scores from A to F, based on York City-based firm RAND Engineering & the findings of that analysis. The score ranges Architecture DPC, following the precedent and letter grades break down as follows: set at New York City's restaurants, building owners will now have letter grades posted outside their entrances as well. However, un- like the restaurant grading system, which is based on the findings of Health Department less than 70; inspectors regarding cleanliness, food storage, and other hygiene-related standards, the new building grades will reflect each structure’s quired benchmarking information; energy efficiency profile. According to RAND, “Owners of build- ings that are subject to NYC's Benchmarking program. Law (Local Laws 84/09 and 133/16) will be re- quired to post energy efficiency letter grades ficiency Rating labels will be available in the issued by the city, starting October 31, 2020 NYC Department of Buildings' DOB NOW per Local Law 33 of 2018 as amended by Lo- cal Law 95 of 2019.” The NYC Benchmarking Law mandates in a conspicuous location near each public that owners of buildings over 25,000 square entrance by October 31 of each year; failure feet are to submit an annual analysis of their to do so will result in a DOB violation and an energy and water consumption to Energy Star annual fine of $1,250.” Portfolio Manager, the federal Environmental Protection Agency’s (EPA’s) online bench- marking tool. Buildings will then be assigned A - score is equal to or greater than 85; B - score is equal to or greater than 70 but less than 85; C - score is equal to or greater than 55 but D - score is less than 55; F - for buildings that didn't submit re- N - for buildings exempted from bench- marking, or not covered by the Energy Star According to RAND, “Building Energy Ef- Public Portal annually on October 1. Build- ing owners must print and display the label n continued on page 13 COOPERATOR.COM NYC Buildings to Receive Energy Efficiency Ratings DOB, EPA Team Up to Issue ‘Grades’ from A to F BY THE COOPERATOR STAFF On Friday, July 24, New York State passed but not limited to, the interruption or discon- S6874A/A8903-A, a bill granting the NY De- partment of State greater authority to punish terferes with or disturbs the peace, comfort, real estate licensees for violating the state’s repose, and quiet enjoyment of a tenant.” Human Rights Law. According to the text of the bill, “The de- partment of state may revoke the license of a statement on the passing of this legislation: real estate broker or salesman, or suspend the same for such period as the department may and opportunity when searching for hous- deem proper; or in lieu thereof may impose a ing or commercial real estate. This bill is an fine not exceeding $1,000 dollars payable to important step in fighting discrimination and the Department of State; or a reprimand upon disparate treatment \[that\] people of diverse conviction of the licensee of a violation of any backgrounds may experience because of a provision of this article; or for a material mis- statement in the application for such license; try who flout the law.” or if such licensee has been guilty of fraud or fraudulent practices; or for dishonest or amends Section 441-c of the Real Property misleading advertising; or has demonstrated Law by giving the New York Department of untrustworthiness or incompetency to act as State the discretion to fine, suspend, or revoke a real estate broker or salesman; or for a viola- tion of Article 15 of the executive law com- mitted in his or her capacity as a real estate the New York State Executive Law, known as broker or salesman, as the case may be. “In the case of a real estate broker engaged as a real estate broker or salesperson. The Bill in the business of a tenant relocator, untrust- worthiness or incompetency shall include engaging in any course of conduct including, tinuance of essential building service, that in- Real Estate Board of New York (REBNY) President James Whelan issued the following “All New Yorkers must have equal access small fraction of individuals within the indus- According to REBNY, S6874A/A8903-A the license of a real estate broker or salesper- son who commits a violation of Article 15 of the Human Rights Law, in his or her capacity is effective immediately. n