I find the appearance of every single 5-over-1 style apartment building in Raleigh/the United States of America frustrating. They all look cheap AF.
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These buildings are the result of financialization of housing construction.
Per Strong Towns:
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The expert (Chuck) at the end of the video that talks largely from a Milwaukee point of view talks too narrowly about the topic that doesn’t map 1:1 to rapidly growing places like Raleigh without the transportation infrastructure like Milwaukee has.
I haven’t watched the full video, but that presentation was to a Milwaukee audience, so probably makes sense
I’ve heard there’s only a handful of residents in both The Mira and The Acorn. Wonder if we have reached peak luxury apartment.
I have heard the same for The Platform.
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I work for a luxury apartment developer. We are definitely in a lull; but, if they offer the right incentives they will fill up.
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Count me as somewhat excited to hear this.
Lease rates (incentives) will have to decline to meet buyers, lowering housing cost comps in downtown. It may slow down some new projects from starting, but at a certain point the city has to be happy with what it has and improve life for the residents current. Creativity is the product of constraint
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It looks like some apartments may have been fixing the rent prices.
https://www.politico.com/news/2024/03/20/rental-housing-market-doj-investigation-00147333
Luckily my rent has not changed for the past 2 years. Due to that, I haven’t wanted to move.
My concern with some of the bigger complexes are that the deals may be “good” for the first year, but that renewal could be a killer. One of my friends just moved out of Leigh House because they wanted to raise his rent. They wanted more than what was listed on the website online.
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Girlfriend is actively looking for an apartment. Choosing between The L, St. Mary’s Square and The Acorn because they’re all offering good incentives. More competition is good!
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Depending on how the rent concession is applied, the rent paid increases, but from accounting standpoint it’s actually the same base rent.
Typically for new construction the developer might offer 2 months free rent on 15 month lease. So if your base rent is $1,800/month the developer will say okay 2 free months totals $3,600 which spread over the 15 month lease is a $240 month discount. So the tenant ends up paying $1,560 each month for the first 15 months, however on the 16th month since the discount is no longer applied, the base rent of $1,800 is billed, the tenant sees this as a 15% increase in rent.
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Typically the MF industry has what’s know as asorption metric, basically how many new units will be leased. Depending on the market, product type, supply/demand, number of new residents, etc all have an impact on this. It’s not uncommon to see renters “move up” when new Class A product enters the market, so maybe someone moves from a 2020 Class A to the 2024 Class A building assuming its the same fit/finish level. At the same time, a new resident to Raleigh might pick the 2024 Class A apartment without vacating another unit in the market. Historical data is often used for the assumption of what the lease-up velocity a new apartmnet buildng will be. Once built, the developer has the option in real time to work with property management to decide what strategy they want to use when leasing up a new apartment, they can drive rate which usually means a slower lease up time but higher average rent. They can drive occupancy by doing things like lowing the rent either with an actual decrease in rent or more commonly through new renter concessions. Ultimately market forces of supply/demand will be the deciding factor of when the apartment reaches stabilization, but a few months of slow leases is not a major concern for a project unless they are under a time crunch for refinance reasons.
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Looks like they need to finish the paint job!!
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Hooray for putting housing on a badly underused area but holy cow that’s incredibly cheap and lazy looking even by 5-over-1 standards.
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There’s also nothing around it and there won’t be for the next 3 years. Very awkward location atm.
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For what it’s worth, it is about a mile from Weaver Street Market and just over 2 miles to Publix on Peace Street.
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Those “balconies” are beyond awful. I know many, particularly @John hate the “lifeboat” balconies, but in my book these are even worse. For goodness sakes, at least fit the railing in the door frame if you aren’t going to provide any outdoor space at all. Not even a “Flat Stanly” could stand out there.
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I think this one might beat out the Lincoln for the worst building ever built…in all of history. Is that times new roman font on the Mira sign? Someone tell the intern to stop using Microsoft word to design the signage.
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This building looks like a background in a PlayStation 2 video game
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