After the 2009 financial crisis in the US, interest rates plummeted, and they’ve only recently started to rise again. Starting in December 2015, the Federal Reserve began to raise the funds rate, and the Federal Open Market Committee has voted to raise rates three time since then.
For savers, these rates haven’t affected much – interest rates have only risen slightly for them in the past year, and the difference between one percent and 1.2 percent may not warrant shopping around for another bank. The banks are full of savers’ cash and therefore not pressured to compete for deposits. The biggest banks often offer the lowest rates, even for customers with millions in their accounts. Customers wanting to increase their yields should consider regional or lesser known banks that do need the cash and are willing to offer higher rates.
Interest rates have changed more significantly for borrowers, though some products have hardly seen any change at all. Auto loan rates are down due to the competitive market and the rise of auto defaults. Home mortgage rates dropped after the Fed’s first rate hike in 2015; however, they have bounced back since then, since those rates are less affected by the Fed funds rate.
Historically, credit card rates have closely mimicked Fed rates, and this time is no exception. However, consumers may still find opportunities to save – those with good credit scores may be able to find cards with limited time rates of zero percent. And the Navy Federal Credit Union, the largest credit union in the US, took the last Fed hike in June as an opportunity to stand out from the crowd, dropping their basic card’s rate by two percentage points.
https://titlepartnersfl.com/wp-content/uploads/2017/10/up-arrow-2382831_640.png366640support_8dbahttps://titlepartnersfl.com/wp-content/uploads/2016/02/Title-Partners-Final-logo-small-e1454711286626.pngsupport_8dba2017-10-02 17:16:022017-10-02 17:16:02Fed Rates Are Up – Where Do Consumers Feel It Most?
A new report by the National Multifamily Housing Council and the National Apartment Association has ranked Miami third on its list of cities with the highest estimated demand over the next decade for new apartment buildings with 5 or more units. The same report shows that Miami is the fourth most difficult metro area in which to build new apartments, behind Honolulu, Boston, and Baltimore (first to third, respectively).
While New York City and Dallas have a significantly higher estimate for demand of new apartment buildings in comparison to Miami, both cities rank much lower on the list of cities in which it is most difficult to build. New York is number 10 on that list, while Dallas doesn’t even break the top 10. The study looked at zoning regulations and land costs when ranking how difficult it is to build in each metro area.
All over the country, home ownership rates are down, and while large apartment buildings are high in demand, there is also demand for more single-family homes and apartment buildings. Both metropolitan areas and smaller cities are seeing a shortage of existing properties, which means competition for leases has become more intense.
As rental demands increase, renters are finding themselves spending a higher percent of their wages on rent. In Miami, more than half of renters spend over one-third of their income on housing. This is not unordinary, as seven of the ten cities in which it is most difficult to build currently see renters spending at least 35 percent of their income on rent.
Source:
Clark, Patrick. These Are the U.S. Cities Where It Costs Too Much to Build. (2017, June 26). Retrieved from https://www.bloomberg.com/news/articles/2017-06-26/these-are-the-u-s-cities-where-it-costs-too-much-to-build
https://titlepartnersfl.com/wp-content/uploads/2017/09/Flag_of_Miami-Dade_County_Florida.png216325support_8dbahttps://titlepartnersfl.com/wp-content/uploads/2016/02/Title-Partners-Final-logo-small-e1454711286626.pngsupport_8dba2017-09-23 20:00:012017-09-23 20:00:01Demand for Multifamily Housing is High in Miami – But So Is the Cost
The Consumer Financial Protection Bureau (CFPB) released a statement in May requesting information about the collection of data on small business loans. The Bureau’s request states that the Equal Credit Opportunity Act (part of the Dodd-Frank Act) has been amended to “require financial institutions to compile, maintain, and report information concerning credit applications made by women-owned, minority-owned, and small businesses” and that the Bureau “seeks to learn more about the small business financing market, including understanding more about the products that are offered to small businesses… as well as the financial institutions that offer such credit.”
The CFPB has also requested public comment regarding possible complications in reporting this data, both in terms of how data is collected and what difficulties they may cause to financial institutions.
The Independent Community Bankers Association immediately opposed the mandate. In an official statement by the ICBA, the President and CEO Camden R. Fine said, “The CFPB’s data collection and reporting mandates will compound existing regulatory and paperwork burdens, to the detriment of economic and job growth.”
Furthermore, the statement claimed that the regulations would “disproportionately harm community banks with little benefit” and that the “ICBA also strongly urges the CFPB to use its authority under the Dodd-Frank Act to exempt community banks from any reporting rules it issues and to limit mandatory data points to those required by statute.”
Reporting on small business loans is inherently more complicated than reporting on something more uniform like mortgage loans, as every small business loan is different. While the regulations are intended to combat discrimination, it could be difficult to compile enough data for small banks, which only make up 8 percent of the industry’s assets, to infer anything conclusive.
Sources:
Request for Information Regarding the Small Business Lending Market. (2017, May 10). Retrieved from https://www.consumerfinance.gov/policy-compliance/notice-opportunities-comment/open-notices/request-information-regarding-small-business-lending-market/
Mandelbaum, Robb. The CFPB Wants Data On Small Business Loans. Bankers Are Outraged. (2017, May 29). Retrieved from https://www.forbes.com/sites/robbmandelbaum/2017/05/29/the-cfpb-wants-data-on-small-business-loans-bankers-are-outraged/#53a84fcebc3f
ICBA Strongly Opposes CFPB Reporting Mandates. (2017, May 10). Retrieved from http://www.icba.org/news-events/press-releases/2017/05/10/icba-strongly-opposes-cfpb-reporting-mandates
https://titlepartnersfl.com/wp-content/uploads/2017/09/12140164325_8a30ee0a29_z.jpg480640support_8dbahttps://titlepartnersfl.com/wp-content/uploads/2016/02/Title-Partners-Final-logo-small-e1454711286626.pngsupport_8dba2017-09-02 14:45:312018-03-17 23:58:37CFPB Faces Challenges in Collecting Data on Small Business Loans
South Florida multi-family property sales increased to over $3.6 billion in 2016, which tops the record of $3.3 billion set in 2015. Strong fundamentals prevail, and growth is expected to continue.
As the region’s population continues to rise and the price of single-family homes steadily increases, the demand for rentals is high. According to Cushman & Wakefield, “In the past five years South Florida’s population increased by 333,000. During the same period, 30,093 new apartment units were built. This means one unit has been built for every 11 net new residents. Over the next five years, South Florida is expected to see a positive net migration of 7.5% or 503,260 people. Using the same ratio, the region would need over 45,000 new rentals to keep pace with the population growth for the next five years.”
The home ownership rate in South Florida (62.1%) is one of the lowest in 30 years, and the price of home ownership has outpaced the cost of renting. Cap rates are meager, and investors are interested in the rental market, which promises high cash returns.
Due to the rising costs of land and construction, development is primarily geared towards the A+ market. Fortunately, South Florida saw income levels rise in 2016. Options in the B and C markets continue to be sparse; however, many investors are looking at value-added properties as opportunities in those markets, which have seen the strongest growth in the past year.
Sources:
Record-Breaking $3.6 Billion Multifamily Sales in 2016 in South Florida. (2017). Retrieved from https://cld.bz/bookdata/WIDjss/basic-html/page-1.html
LeClaire, Jennifer. Record-Setting Pace Marks South Florida Market. (2017, May 12). Retrieved from http://www.globest.com/sites/jenniferleclaire/2017/05/12/record-setting-pace-marks-south-florida-multifamily-market/
https://titlepartnersfl.com/wp-content/uploads/2017/08/florida-home-for-sale-1403780860bci.jpg11611920support_8dbahttps://titlepartnersfl.com/wp-content/uploads/2016/02/Title-Partners-Final-logo-small-e1454711286626.pngsupport_8dba2017-08-15 14:57:062017-08-15 14:57:06South Florida Sees Record Multifamily Sales for Second Year in a Row
Millennials and empty-nesters are moving in droves to city centers nationwide, but there are few places where the urban renaissance is more obvious than Miami.
The push has transformed the city into a multi-dimensional metropolis: Neighborhoods that were once overlooked are getting newfound attention from tourists, residents and real estate developers alike.
“The Miami of 20 years ago versus today is night and day, and what it’s going to be in 20 years is night and day,” said Martin Pinilla, co-founder and managing partner of the Barlington Group, a Miami company actively investing in Little Havana, west of downtown Miami and the home of the Miami Marlins stadium.
Pinilla was one of five speakers on a panel focused on emerging Miami neighborhoods during a CREW-Miami luncheon Wednesday.
He was joined by other real estate leaders, including Shari Neissani, vice president of asset management for New York’s RedSky Capital, a major real estate owner involved in Wynwood’s striking transformation from an industrial base.
RedSky found in Wynwood what it initially saw in its Brooklyn home of Williamsburg years ago. The group began investing in the Miami enclave about four years ago with hopes to enhance and preserve its artsy, eclectic culture by revamping its dated real estate, Neissani said.
RedSky plans to soon break ground on its first local development, CUBE Wynwd, the first office building to rise in the community. It plans another office building at 2700 NW Second Ave., which was purchased for $31 million last year.
But it’s not easy to develop property in Miami, especially in up-and-coming neighborhoods like Wynwood, Little Havana and Allapattah, the panelists said.
The city sees the desire to build but sets high hurdles, Neissani said.
RedSky’s strategy has been to work with Wynwood property owners to design projects that fit with the neighborhood to improve their chances of city approval.
The biggest challenge faced by developers entering these neighborhoods are policy issues, said Carlos Fausto, president of Fausto Commercial. He applauds the real estate community for working toward the zoning code changes needed to unleash neighborhood development.
While the city adopted the Miami 21 zoning overhaul in 2009, it’s already archaic, said Tony Cho, founder of Metro 1 Properties.
The code fails to address resiliency, sea-level rise or affordability issues, Cho said.
Character
In Wynwood, stakeholders have successfully established the Neighborhood Revitalization District, or NRD, with a zoning code specific to the neighborhood that opened the door for development while keeping its arts orientation intact.
Fausto said Little Havana property owners are pursuing a similar initiative.
While plenty of high-end buildings have risen in Miami, few affordable options have been delivered. The historic Little Havana neighborhood has small parcels dominated by one- to four-unit homes for middle- to low-income residents. It’s walkable with mass transit access, and it remains affordable compared with the pricey Brickell district to the east and Coral Gables to the south.
But zoning is a major impediment. Fausto said density restrictions and parking requirements limit developers’ ability to build affordable homes.
A zoning overlay similar to Wynwood’s NRD would help bring affordable development.
Cho commends the effort: He supports less restrictive parking requirements as well as smaller and more affordable spaces across these neighborhoods.
Many homes in Little Havana date back to the 1930s and “require a lot of love” but hold a lot of promise, Pinilla said.
Cho sees Little Havana and Allapattah as home to Miami’s future creative workforce. It’ll be tough to attract companies to the area if their employees can’t afford a place to live.
Mass transit is also key, said Mitch Patel, CEO and senior managing principal of Platinum Cos. If the neighborhoods aren’t interconnected, residents and employees will have a hard time getting around.
Patel warned a lack of reliable transit options may deter people from moving to urban centers and reverse the trend responsible for the re-emergence of these neighborhoods.
Cho, a relative Wynwood pioneer who arrived in the neighborhood 17 years ago, said it’s important for each community to preserve its character.
“Wynwood was about street art,” he said. “Each neighborhood needs to have its own defining principle, its own characteristic.”
As land prices escalate in Wynwood, investors have started looking elsewhere. A number of high-profile deals has thrown Allapattah into the spotlight. The working-class neighborhood sits north of Little Havana and west of Wynwood.
“I love the neighborhood because it’s a working neighborhood, and it’s an ambitious neighborhood,” Fausto said.
It has a strong industrial core — “similar to what Wynwood looked like 10 to 15 years ago” — and a solid housing base.
When asked about Miami’s next frontier, Patel answered, “Every neighborhood is game.”
https://titlepartnersfl.com/wp-content/uploads/2017/08/Wynwood-Office-Tower-Article-201703072002.jpg372616support_8dbahttps://titlepartnersfl.com/wp-content/uploads/2016/02/Title-Partners-Final-logo-small-e1454711286626.pngsupport_8dba2017-08-02 17:54:512017-08-02 21:20:21Next Real Estate Frontier: Neighborhoods on Edge of Miami
Airbnb, which has already been feeling the squeeze in cities like New York, San Francisco and Seattle, are now facing further crackdowns in two additional major tourist destinations: Las Vegas and Hawaii.
Las Vegas property owners interested in renting out their properties for brief periods will have to comply with new rules passed Wednesday meant to crack down on a booming short-term rental industry that has raised concerns among some residents and local officials. Owners now need a special use permit, proof of liability insurance for US$500,000 and letter-sized placards outside the properties with contact information and maximum allowed occupancy.
The new requirements were approved as complaints over raucous parties at short-term rentals have mounted over the years and following more than three hours of debate among city officials and comments from dozens of residents.
City officials were split on the ordinance. While some council members strongly favor the regulations, others, including the mayor, questioned whether they will truly put an end to the use of rentals as “party houses” since enforcement of the existing regulations has not been efficient.
“Everything I’m hearing is exactly the same. It’s party houses and party houses and party houses, and none of us wants them in our neighborhood,” Mayor Carolyn Goodman said. “But this isn’t going to do anything, in my opinion, to stop the party houses.”
Figures released in February by the San Francisco-based home-sharing service Airbnb show people in Las Vegas who listed their homes through the company hosted more than a quarter of a million people last year and earned $35.5 million.
Las Vegas drew a record number of visitors for a third straight year in 2016, attracting almost 43 million tourists. Unincorporated Clark County – which includes properties near the Las Vegas Strip – does not allow short-term rentals in residential areas.
Short-term rentals were already required to pass a safety and minimum property standard inspection, obtain a business license and pay an annual $500 permit fee. Short-term rentals may not be within 660 feet of each other as measured from their property lines.
The new special-use permit carries a fee of $1,030. It also requires units with more than 5 bedrooms to have one additional parking spot for every two additional bedrooms.
Airbnb spokeswoman Jasmine Mora in a statement said the council’s decision “is a step in the wrong direction that threatens an important economic lifeline for thousands of Las Vegas families.”
Meanwhile, officials on the Hawaii island of Oahu are looking for ways to cut down on subleasing as its popularity rises with the advent of businesses such as Airbnb.
The Honolulu Star-Advertiser reports that renters have been cashing in on the profitability of the island’s vacation rental market through online rental sites. But Honolulu officials are working on a way to curb the trend by strengthening the city’s subleasing enforcement strategy.
Hawaii real estate analyst Stephany Sofos says she once had a tenant who was renting from her for $1,500 per month, but was subleasing for $1,000 per week through Craigslist and Airbnb.
Elizabeth Churchill, owner of tourism consultancy Churchill Group LLC, called the practice “brilliant” for tenants, but says those who are making money should follow regulations and pay their share.
Airbnb has run into regulatory battles in some cities, including New York and San Francisco. In some cities, local officials have complained that the boom in short-term rentals, led by Airbnb – which boasts millions of rental listings around the world – is reducing long-term housing for residents.
In May, Seattle officials and Airbnb reached a deal in a lawsuit stemming from the city’s efforts to prevent the website from including housing units that violate city restrictions on who can list properties and for how long. Under the settlement, residents have to provide their registration number to list a rental on the website.
With file from The Associated Press via Travel Week
https://titlepartnersfl.com/wp-content/uploads/2017/07/The-battle-continues-Las-Vegas-Hawaii-crack-down-on-Airbnb.jpg427673support_8dbahttps://titlepartnersfl.com/wp-content/uploads/2016/02/Title-Partners-Final-logo-small-e1454711286626.pngsupport_8dba2017-07-14 20:21:102018-03-12 21:43:28The battle continues: Las Vegas & Hawaii crack down on Airbnb
Fed Rates Are Up – Where Do Consumers Feel It Most?
UncategorizedAfter the 2009 financial crisis in the US, interest rates plummeted, and they’ve only recently started to rise again. Starting in December 2015, the Federal Reserve began to raise the funds rate, and the Federal Open Market Committee has voted to raise rates three time since then.
For savers, these rates haven’t affected much – interest rates have only risen slightly for them in the past year, and the difference between one percent and 1.2 percent may not warrant shopping around for another bank. The banks are full of savers’ cash and therefore not pressured to compete for deposits. The biggest banks often offer the lowest rates, even for customers with millions in their accounts. Customers wanting to increase their yields should consider regional or lesser known banks that do need the cash and are willing to offer higher rates.
Interest rates have changed more significantly for borrowers, though some products have hardly seen any change at all. Auto loan rates are down due to the competitive market and the rise of auto defaults. Home mortgage rates dropped after the Fed’s first rate hike in 2015; however, they have bounced back since then, since those rates are less affected by the Fed funds rate.
Historically, credit card rates have closely mimicked Fed rates, and this time is no exception. However, consumers may still find opportunities to save – those with good credit scores may be able to find cards with limited time rates of zero percent. And the Navy Federal Credit Union, the largest credit union in the US, took the last Fed hike in June as an opportunity to stand out from the crowd, dropping their basic card’s rate by two percentage points.
Source:
Steverman, Ben. Why You Don’t Feel the Fed Rate Hike in Your Bank Account. (2017, July 18). Retrieved from https://www.bloomberg.com/news/articles/2017-07-18/why-you-don-t-feel-fed-rate-hikes-in-your-bank-account
Demand for Multifamily Housing is High in Miami – But So Is the Cost
UncategorizedA new report by the National Multifamily Housing Council and the National Apartment Association has ranked Miami third on its list of cities with the highest estimated demand over the next decade for new apartment buildings with 5 or more units. The same report shows that Miami is the fourth most difficult metro area in which to build new apartments, behind Honolulu, Boston, and Baltimore (first to third, respectively).
While New York City and Dallas have a significantly higher estimate for demand of new apartment buildings in comparison to Miami, both cities rank much lower on the list of cities in which it is most difficult to build. New York is number 10 on that list, while Dallas doesn’t even break the top 10. The study looked at zoning regulations and land costs when ranking how difficult it is to build in each metro area.
All over the country, home ownership rates are down, and while large apartment buildings are high in demand, there is also demand for more single-family homes and apartment buildings. Both metropolitan areas and smaller cities are seeing a shortage of existing properties, which means competition for leases has become more intense.
As rental demands increase, renters are finding themselves spending a higher percent of their wages on rent. In Miami, more than half of renters spend over one-third of their income on housing. This is not unordinary, as seven of the ten cities in which it is most difficult to build currently see renters spending at least 35 percent of their income on rent.
Source:
Clark, Patrick. These Are the U.S. Cities Where It Costs Too Much to Build. (2017, June 26). Retrieved from https://www.bloomberg.com/news/articles/2017-06-26/these-are-the-u-s-cities-where-it-costs-too-much-to-build
CFPB Faces Challenges in Collecting Data on Small Business Loans
UncategorizedThe Consumer Financial Protection Bureau (CFPB) released a statement in May requesting information about the collection of data on small business loans. The Bureau’s request states that the Equal Credit Opportunity Act (part of the Dodd-Frank Act) has been amended to “require financial institutions to compile, maintain, and report information concerning credit applications made by women-owned, minority-owned, and small businesses” and that the Bureau “seeks to learn more about the small business financing market, including understanding more about the products that are offered to small businesses… as well as the financial institutions that offer such credit.”
The CFPB has also requested public comment regarding possible complications in reporting this data, both in terms of how data is collected and what difficulties they may cause to financial institutions.
The Independent Community Bankers Association immediately opposed the mandate. In an official statement by the ICBA, the President and CEO Camden R. Fine said, “The CFPB’s data collection and reporting mandates will compound existing regulatory and paperwork burdens, to the detriment of economic and job growth.”
Furthermore, the statement claimed that the regulations would “disproportionately harm community banks with little benefit” and that the “ICBA also strongly urges the CFPB to use its authority under the Dodd-Frank Act to exempt community banks from any reporting rules it issues and to limit mandatory data points to those required by statute.”
Reporting on small business loans is inherently more complicated than reporting on something more uniform like mortgage loans, as every small business loan is different. While the regulations are intended to combat discrimination, it could be difficult to compile enough data for small banks, which only make up 8 percent of the industry’s assets, to infer anything conclusive.
Sources:
Request for Information Regarding the Small Business Lending Market. (2017, May 10). Retrieved from https://www.consumerfinance.gov/policy-compliance/notice-opportunities-comment/open-notices/request-information-regarding-small-business-lending-market/
Mandelbaum, Robb. The CFPB Wants Data On Small Business Loans. Bankers Are Outraged. (2017, May 29). Retrieved from https://www.forbes.com/sites/robbmandelbaum/2017/05/29/the-cfpb-wants-data-on-small-business-loans-bankers-are-outraged/#53a84fcebc3f
ICBA Strongly Opposes CFPB Reporting Mandates. (2017, May 10). Retrieved from http://www.icba.org/news-events/press-releases/2017/05/10/icba-strongly-opposes-cfpb-reporting-mandates
Photo by Ted Eytan, https://www.flickr.com/photos/taedc/12140164325 Attribution-ShareAlike 2.0 Generic (CC BY-SA 2.0)
South Florida Sees Record Multifamily Sales for Second Year in a Row
UncategorizedSouth Florida multi-family property sales increased to over $3.6 billion in 2016, which tops the record of $3.3 billion set in 2015. Strong fundamentals prevail, and growth is expected to continue.
As the region’s population continues to rise and the price of single-family homes steadily increases, the demand for rentals is high. According to Cushman & Wakefield, “In the past five years South Florida’s population increased by 333,000. During the same period, 30,093 new apartment units were built. This means one unit has been built for every 11 net new residents. Over the next five years, South Florida is expected to see a positive net migration of 7.5% or 503,260 people. Using the same ratio, the region would need over 45,000 new rentals to keep pace with the population growth for the next five years.”
The home ownership rate in South Florida (62.1%) is one of the lowest in 30 years, and the price of home ownership has outpaced the cost of renting. Cap rates are meager, and investors are interested in the rental market, which promises high cash returns.
Due to the rising costs of land and construction, development is primarily geared towards the A+ market. Fortunately, South Florida saw income levels rise in 2016. Options in the B and C markets continue to be sparse; however, many investors are looking at value-added properties as opportunities in those markets, which have seen the strongest growth in the past year.
Sources:
Record-Breaking $3.6 Billion Multifamily Sales in 2016 in South Florida. (2017). Retrieved from https://cld.bz/bookdata/WIDjss/basic-html/page-1.html
LeClaire, Jennifer. Record-Setting Pace Marks South Florida Market. (2017, May 12). Retrieved from http://www.globest.com/sites/jenniferleclaire/2017/05/12/record-setting-pace-marks-south-florida-multifamily-market/
Next Real Estate Frontier: Neighborhoods on Edge of Miami
UncategorizedMillennials and empty-nesters are moving in droves to city centers nationwide, but there are few places where the urban renaissance is more obvious than Miami.
The push has transformed the city into a multi-dimensional metropolis: Neighborhoods that were once overlooked are getting newfound attention from tourists, residents and real estate developers alike.
“The Miami of 20 years ago versus today is night and day, and what it’s going to be in 20 years is night and day,” said Martin Pinilla, co-founder and managing partner of the Barlington Group, a Miami company actively investing in Little Havana, west of downtown Miami and the home of the Miami Marlins stadium.
Pinilla was one of five speakers on a panel focused on emerging Miami neighborhoods during a CREW-Miami luncheon Wednesday.
He was joined by other real estate leaders, including Shari Neissani, vice president of asset management for New York’s RedSky Capital, a major real estate owner involved in Wynwood’s striking transformation from an industrial base.
RedSky found in Wynwood what it initially saw in its Brooklyn home of Williamsburg years ago. The group began investing in the Miami enclave about four years ago with hopes to enhance and preserve its artsy, eclectic culture by revamping its dated real estate, Neissani said.
RedSky plans to soon break ground on its first local development, CUBE Wynwd, the first office building to rise in the community. It plans another office building at 2700 NW Second Ave., which was purchased for $31 million last year.
But it’s not easy to develop property in Miami, especially in up-and-coming neighborhoods like Wynwood, Little Havana and Allapattah, the panelists said.
The city sees the desire to build but sets high hurdles, Neissani said.
RedSky’s strategy has been to work with Wynwood property owners to design projects that fit with the neighborhood to improve their chances of city approval.
The biggest challenge faced by developers entering these neighborhoods are policy issues, said Carlos Fausto, president of Fausto Commercial. He applauds the real estate community for working toward the zoning code changes needed to unleash neighborhood development.
While the city adopted the Miami 21 zoning overhaul in 2009, it’s already archaic, said Tony Cho, founder of Metro 1 Properties.
The code fails to address resiliency, sea-level rise or affordability issues, Cho said.
Character
In Wynwood, stakeholders have successfully established the Neighborhood Revitalization District, or NRD, with a zoning code specific to the neighborhood that opened the door for development while keeping its arts orientation intact.
Fausto said Little Havana property owners are pursuing a similar initiative.
While plenty of high-end buildings have risen in Miami, few affordable options have been delivered. The historic Little Havana neighborhood has small parcels dominated by one- to four-unit homes for middle- to low-income residents. It’s walkable with mass transit access, and it remains affordable compared with the pricey Brickell district to the east and Coral Gables to the south.
But zoning is a major impediment. Fausto said density restrictions and parking requirements limit developers’ ability to build affordable homes.
A zoning overlay similar to Wynwood’s NRD would help bring affordable development.
Cho commends the effort: He supports less restrictive parking requirements as well as smaller and more affordable spaces across these neighborhoods.
Many homes in Little Havana date back to the 1930s and “require a lot of love” but hold a lot of promise, Pinilla said.
Cho sees Little Havana and Allapattah as home to Miami’s future creative workforce. It’ll be tough to attract companies to the area if their employees can’t afford a place to live.
Mass transit is also key, said Mitch Patel, CEO and senior managing principal of Platinum Cos. If the neighborhoods aren’t interconnected, residents and employees will have a hard time getting around.
Patel warned a lack of reliable transit options may deter people from moving to urban centers and reverse the trend responsible for the re-emergence of these neighborhoods.
Cho, a relative Wynwood pioneer who arrived in the neighborhood 17 years ago, said it’s important for each community to preserve its character.
“Wynwood was about street art,” he said. “Each neighborhood needs to have its own defining principle, its own characteristic.”
As land prices escalate in Wynwood, investors have started looking elsewhere. A number of high-profile deals has thrown Allapattah into the spotlight. The working-class neighborhood sits north of Little Havana and west of Wynwood.
“I love the neighborhood because it’s a working neighborhood, and it’s an ambitious neighborhood,” Fausto said.
It has a strong industrial core — “similar to what Wynwood looked like 10 to 15 years ago” — and a solid housing base.
When asked about Miami’s next frontier, Patel answered, “Every neighborhood is game.”
Carla Vianna, Daily Business Review
March 16, 2017
Original Article
Above Image: Rendering of the office tower to be built in Miami’s Wynwood neighborhood. Credit: RedSky Capital
The battle continues: Las Vegas & Hawaii crack down on Airbnb
UncategorizedAirbnb, which has already been feeling the squeeze in cities like New York, San Francisco and Seattle, are now facing further crackdowns in two additional major tourist destinations: Las Vegas and Hawaii.
Las Vegas property owners interested in renting out their properties for brief periods will have to comply with new rules passed Wednesday meant to crack down on a booming short-term rental industry that has raised concerns among some residents and local officials. Owners now need a special use permit, proof of liability insurance for US$500,000 and letter-sized placards outside the properties with contact information and maximum allowed occupancy.
The new requirements were approved as complaints over raucous parties at short-term rentals have mounted over the years and following more than three hours of debate among city officials and comments from dozens of residents.
City officials were split on the ordinance. While some council members strongly favor the regulations, others, including the mayor, questioned whether they will truly put an end to the use of rentals as “party houses” since enforcement of the existing regulations has not been efficient.
“Everything I’m hearing is exactly the same. It’s party houses and party houses and party houses, and none of us wants them in our neighborhood,” Mayor Carolyn Goodman said. “But this isn’t going to do anything, in my opinion, to stop the party houses.”
Figures released in February by the San Francisco-based home-sharing service Airbnb show people in Las Vegas who listed their homes through the company hosted more than a quarter of a million people last year and earned $35.5 million.
Las Vegas drew a record number of visitors for a third straight year in 2016, attracting almost 43 million tourists. Unincorporated Clark County – which includes properties near the Las Vegas Strip – does not allow short-term rentals in residential areas.
Short-term rentals were already required to pass a safety and minimum property standard inspection, obtain a business license and pay an annual $500 permit fee. Short-term rentals may not be within 660 feet of each other as measured from their property lines.
The new special-use permit carries a fee of $1,030. It also requires units with more than 5 bedrooms to have one additional parking spot for every two additional bedrooms.
Airbnb spokeswoman Jasmine Mora in a statement said the council’s decision “is a step in the wrong direction that threatens an important economic lifeline for thousands of Las Vegas families.”
Meanwhile, officials on the Hawaii island of Oahu are looking for ways to cut down on subleasing as its popularity rises with the advent of businesses such as Airbnb.
The Honolulu Star-Advertiser reports that renters have been cashing in on the profitability of the island’s vacation rental market through online rental sites. But Honolulu officials are working on a way to curb the trend by strengthening the city’s subleasing enforcement strategy.
Hawaii real estate analyst Stephany Sofos says she once had a tenant who was renting from her for $1,500 per month, but was subleasing for $1,000 per week through Craigslist and Airbnb.
Elizabeth Churchill, owner of tourism consultancy Churchill Group LLC, called the practice “brilliant” for tenants, but says those who are making money should follow regulations and pay their share.
Airbnb has run into regulatory battles in some cities, including New York and San Francisco. In some cities, local officials have complained that the boom in short-term rentals, led by Airbnb – which boasts millions of rental listings around the world – is reducing long-term housing for residents.
In May, Seattle officials and Airbnb reached a deal in a lawsuit stemming from the city’s efforts to prevent the website from including housing units that violate city restrictions on who can list properties and for how long. Under the settlement, residents have to provide their registration number to list a rental on the website.
With file from The Associated Press via Travel Week