Although this column is normally reserved for the sales market, I have had a number of people asking about the rental market.
Hoboken has a wide range of rental properties available, ranging from small studios in older, walk-up buildings to luxury rentals in high-end buildings such as The Shipyard.
Potential renters can choose between large, managed rental buildings where there is a professional management company or they can rent from an individual condo owner. The larger buildings tend to offer various incentives such as no-fee rentals, small security deposits and lower monthly payments for longer-term leases. Individually owned units may not offer such incentives, but some people prefer to rent in buildings that have a mix of owners and tenants.
Most properties will require a 1.5 month security deposit (refundable when the tenant moves out, minus any damages, etc.) If you use a Realtor to help you find a property, the normal Realtor fee is equal to one month’s rent. Most landlords require proof of employment and a good credit score. The rule of thumb is that tenants must earn 30 times the monthly rent. (For example, if your rent is $2,000 per month you would need to earn $60K per year) This compares favorably with Manhattan, where the Realtor fee is 15% of the rent and you must earn 40 times the rent.
The majority of leases are for one year or longer. There are very few subleases in the area.
Most properties become available 30-60 days before the move-in date.
There is currently a higher-than-average number of available rentals in Hoboken, which is good news for tenants, as the average price has come down slightly.
The average 1-bedroom typically ranges from $2,000-$2,300. 1 plus den (or small 2 beds where the 2nd bedroom is significantly smaller) range from $2,400 -$2,700 and 2-bedrooms range from $2,800 – $3,000.
Now back to our regularly scheduled broadcast – the sales market…
HOBOKEN REAL ESTATE MARKET
14 new listings hit the market this week.
4 new listings. The average price is $561,750 and the average price per sq/ft is $815.
2 properties closed. The average price was $829,500 and the average price per sq/ft was $1,004. (Both units were in a luxury building, hence the high price and average.)
8 new Listings. The average price is $685,090 and the average price per sq/ft is $652.
6 properties closed. The average price was $797,833 and the average price per sq/ft was $646.
2 new listings. The average price is $1,042,000 and the price per sq/ft was $721.
1 property closed. The price was $1,250,000 and the price per sq/ft was $800.
No new listings
One 4-bedroom single-family home closed for $1,755,000.
(Information provided by Hudson County MLS)
Mortgage Market in Review:
Mortgage rates took a significant one-week jump following last week’s election results.
The benchmark 30-year fixed-rate mortgage rose this week to 4.01 percent from 3.73 percent, according to Bankrate’s weekly survey of large lenders. It was the biggest one-week increase in more than three years.
Obviously the big question now is where will rates go? Is 4% the new norm? Most experts seem to agree that they will not go much higher in the short term, but any decrease will be minimal.
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Ann Wycherley is an award-winning realtor with over 15 years of solid real estate experience in the Hoboken market.
She has been recognized by the New Jersey Realtors Circle of Excellence for many years, having earned the Gold Level of Excellence for 2015 and awarded Lifetime Membership in the New Jersey Association of Realtors Distinguished Sales Club.
Other accolades include the coveted Centurion Award for the past four years running (2012-2015), which represents the premium level of achievement within the Century 21 organization.