Michael Stoler Real Estate Newsletter
This week join Michael Stoler on the television productions of New York Real Estate TV, LLC.
Monday, May 20th Michael Stoler's guest on "Building New York-New York Life Stories" is Jamie deRoy.
On Tuesday evening, May 21st , the topic of the Stoler Report-New York' Business Report is "Roosevelt Island & Long Island City: Communities in major transition"
My guests on the broadcasts include Joshua Eisenberg, Andrew Kirby, David Kramer & Alan Suna
The Stoler Report-New York's Business Report now airs a total of 8 times a week on CUNY TV in New York City.
Building New York: New York Life Stories, air 8 times a week in New York City and around the nation on Tuesday night on JLTV & DIRECTV.
Every Monday morning you will receive the latest real estate article by Michael Stoler on the state of the market an information about the upcoming guests on the productions of New York Real Estate TV, LLC.
The Rise of Transit-Oriented Developments (TODs) in Long Island and New Jersey
As more and more tri-state residents look outside the boroughs for housing, the demand for communities with quick and easy access to public transportation is on the rise. One solution is the transit-oriented development ("TOD"), a mixed-use residential and commercial area designed to maximize access to public transport, and often incorporates features to encourage transit ridership and housing development. They also create attractive, vibrant, pedestrian-friendly neighborhoods where people can live, shop, work and play without relying on automobiles.
Throughout the tri-state region, a number of TOD communities are in various stages of development, with a community typically including a center with a transit station or stop (access to Long Island Railroad, Metro-North, New Jersey Transit) surrounded by parking, housing and retail or commercial developments. TODs in urban areas and railroad suburbs surrounding each station are the core muscles which keep 13 million New Yorkers (plus 6 million in Northern New Jersey and Connecticut) moving in a productive fashion.
New Jersey Activity
The New Jersey Department of Transportation (NJDOT) and NJ TRANSIT currently spearhead a multi-agency Smart Growth Partnership known as the Transit Village Initiative, which creates incentives for municipalities to redevelop or revitalize the areas around transit stations using design standards of transit-oriented development. Within the State of New Jersey, there are 26 designated Transit Villages, which have demonstrated a commitment to revitalizing and redeveloping the area around their transit facilities into a compact, mixed-use neighborhood with a strong residential component. They are Pleasantville, Morristown, Rutherford, South Amboy, South Orange, Riverside, Rahway, Metuchen, Belmar, Bloomfield, Bound Brook, Collingswood, Cranford, Matawan, New Brunswick, Journal Square/Jersey City, Netcong, Elizabeth/Midtown, Burlington City, City of Orange Township, Montclair, Somerville, Linden, West Windsor, East Orange and Dunellen.
Harrison, a town close to Newark, was once home to a variety of manufacturers but is now largely vacant. A redevelopment plan approved in 2003 allowed the town to re-zone the waterfront along the Passaic River from older, industrial-use buildings to mixed-use buildings. Harrison Commons, a 275-unit residential rental building with 15,000 square feet of ground-floor retail, is the first project to be built under the redevelopment plan and is one block away from the Harrison PATH station, the anchor for the redevelopment of the entire area.
In New Brunswick, the New Brunswick Development Corporation (DEVCO) used a $52 million tax credit, in cooperation with different local institutions, to complete a new $280 million development that includes apartments, office space, a new Rutgers bookstore, a grocery store and a fitness center, and is close to the Northeast Corridor of the NJ Transit line.
In Monmouth County, Sterling Properties and AST Development announced the development of "Verdana Howell", a complex of 22 two-story, garden-oriented buildings featuring 220 units. The front four acres of Verdana Howell are adjacent to Route 9, and have been approved for commercial use of up to 30,000 square feet. A NJ Transit bus stop to the Port Authority is located at the front entrance of the community.
Developments on Long Island
Currently, elected officials on Long Island are working on regional transportation and development that would help generate TODs in the suburban area east of New York City and make it easier for some residents to commute without a car.
Long Island Business Newsrecently reported that supervisors of several towns unveiled a plan called "Connect Long Island", which would reopen an LIRR station at Republic Airport, build a second track for the commuter railroad, and establish a bus route on Route 110, where much of Suffolk County's employment is concentrated.
A number of TODs have been developed to provide financial support for water and sewer infrastructure. The Long Island Regional Economic Development Council allowed for the creation of a dense town center around the LIRR station in Ronkonkoma. Ronkonkoma Hub is a transit-oriented development in the Town of Brookhaven.
TODs have also opened in Nassau and Suffolk Counties. Last winter, Mill Creek Residential welcomed its first residents to the transit-oriented, luxury rental community in West Hempstead, Long Island. The development known as "West 130" is located at 130 Hempstead Avenue, adjacent to the West Hempstead Long Island Rail Road Station. The four-story development features 150 rental residences, ranging in size from one to three bedrooms, with a private underground garage providing parking for residents.
Jamie Stover, Vice President at Mill Creek Residential, was quoted in Multi-Housing News saying "when you think of West 130, first and foremost you understand its importance as a transit-oriented location. It's centrally located and you can hop on the train out the front door and be in Manhattan in 50 minutes. Plus, there is access to other attractions and destinations, whether it be employment, entertainment or education.
Mill Creek also plans to develop a luxury rental apartment in downtown Morristown, New Jersey. The company has announced plans for "Latitude", a development of 268 units within walking distance to shopping, services and dining. Rich Murphy, Managing Director at Mill Creek Residential was quoted in Multi-Housing News, "People want to live in luxury rental housing these days. And that is spread over a broad range of demographics. It's not just the young professionals. It is divorced people, as well as mature adults, who are selling their four-bedroom Colonials, but still want to maintain a residence in the community where they've spent much of their lives.
With limited availability of land and reasonably priced residential rental and for-sale housing in New York City, expect to see growth in transit-oriented developments in the suburban areas of New York and New Jersey for the foreseeable future.
Housing is seniors' Biggest Expense: representing 35% of total spending
Housing continues to be the largest expenditure for people age 65 and older in 2010, according to the Expenditures of Aged Chartbook, a report issued by the Social Administration The report examines the spending patterns of the population aged 55 or older focusing mainly on the expenditures of those aged 65 or older.
The chartbook is based on the data from the 2010 Consumer Expenditure Survey Public Use File, sponsored by the Bureau of Labor Statistics. It contains comparisons of the expenditures of the aged population (65 or older) with those of the near aged (55-65). Many charts include additional details for those aged 65-74 and those aged 75 or older.
For those with earned income, 34% of annual expenditures went toward housing, up slightly to 36% for those without any earned income.
Other expenses included out-of-pocket healthcare, food, and transportation, ranging from 11% to 15% of total expenditures.
For the lowest income seniors, especially, the proportion of expenditures allocated for housing, food, and out-of-pocket healthcare was even higher (27%) compared to those in the highest income quartile.
Survey respondents in the lowest income quartile spend 43% of their total expenditures on housing, compared to 33% for those in the highest income quartile.
The amount spent by seniors each year varies by age, the SSA found.
For those aged 55-64, median expenditures totaled $37,580 in 2010. Survey respondents aged 75 and older spent $21,654.
However, the shares of expenditures allocated to food and housing were similar among all three age groups, says SSA.
The median share of expenditures allocated to housing among three age groups (55-64, 65-74, and 75 and older) was about 37%, although it declined for successively older adults, down to $7,832 in 2010 for those aged 75 and older.
About 80% of survey respondents in all three age groups were homeowners. The older the respondent, the more likely they were to own a home without a mortgage, the SSA found.
Mean percentage allocated to components of total expenditures, by earned income status:
Category With earned income With not earned income
Housing 33.6% 36.4%
Food 11.6% 12.6%
Out of pocket-health
Care 11.0% 14.5%
Transportation 14.0% 14.1%
Apparel 2.9% 2.4%
Entertainment 4.9% 5.3%
Other 22.1% 14.7%
Baby Boomers: Active users and consumers on the Internet
Many people think that baby boomers, those individuals over fifty years of age have limited knowledge of the latest technological devices and really only utilize the internet for e-mail.
Media Post reported that more than 70% of people 50 + are online, that they do only roughly 29 days per month, and that they account for more than 40% of all online activity.
While younger users often go online as a leisure activity, the driving force behind older Americans' use of the Internet is a sense of purpose. They are looking for information, guidance, tools to manage their daily lives and their futures, entertainment and mental stimulation.
Tumblr, Pinterest and Instagram have not yet caught the eye of the mainstream online Boomer+ crowd, but other networking avenues are becoming well traveled by these consumers.
* Internet users age 50-64 are nearly 40% more likely than those age 18-29 to use LinkedIn
* 56% of Internet users age 50-64 and 40% of those age 65+ use Facebook
* Internet users age 65+ are more likely than those age 30-49 and 50-64 to use Twitter
One of the reasons companies should reach out to the Boomer and older population online is the purchasing power of this age consumer. Purchasing on the Internet is one of Boomers top three online activities. This group is responsible for roughly 40% of all online spending, and Boomers spend more than any other generation online.
Average amount spent online in the third quarter of 2012:
Younger Boomers $647
Older Boomers $638
Gen X $581
Gen Y $425
It turns out that those who are most likely to be early adopters of new technology - Millennials -are the least likely to spend online. They also spend less offline.
The most recent spending data released by the U.S. Census reveals that the 50+ demographic is responsible for 47% of all consumer expenditures, and that in the last three years, 50+ consumer expenditures increased by $99 billion, while 18-49 spending dropped $238 billion.
There's a simple explanation for this: financial stability. Seniors have high-accumulated wealth. Gen Xers have high household income. Boomers have both. Millennials have neither.
Nearly all-higher income Boomers are online, including 92% of Boomers with HHI $60,000+ and 96% of Boomers with HHI $100,000+.
This overlooked online consumer is in need of, and more receptive to, marketing messages specifically tailored to meet their needs and interests.
Advertisers who make the investment to reach the online Boomer audience through a combination of robust content; effective creative and targeting will reap the rewards of engaging this powerful audience.