The Importance of Modular Housing in New York City
Do you remember when Bill de Blasio was the mayor of New York City? One of the major talking points of his tenure was his decision to build and/or preserve hundreds of thousands of homes as part of the “Housing New York 2.0” project. The project was ultimately successful because de Blasio built numerous modular housing projects across New York City to improve its livability for low-income earners.
While de Blasio is no longer in office, modular housing continues to grow in popularity in the empire state. So, what makes modular housing so popular, and why is it a vital component of the New York City property market?
Here’s a look at four major reasons why modular housing is important in New York City.
It Keeps Housing Affordable
Have you recently looked at housing affordability in New York City? Residential real estate in major boroughs costs nearly $800,000 per home, and the city board is debating whether to enforce a mandatory increase in rent or not. Moreover, commercial property owners are raising their rents in response to their tenants using the power of big data to become more profitable. In simpler words, housing affordability in New York City is plummeting—and modular housing is one of the only saving graces because of how cheap it is.
Modular properties are built using industrial machines in semi-automated factories. In other words, they’re much cheaper than traditional homes because they require far less labor to build. This makes them highly important as it gives low-income earners chance to put a roof over their heads in an otherwise notoriously expensive city.
It Helps Reduce Traffic Congestion in Low-rent Areas
Picture this. You’re thinking of buying a house in New York City. You own a car and your yearly income is $67,000, which means you earn slightly less than the median household income in the city. You’ve got a map of the citythat highlights the areas with the most affordable housing, and you’re struggling to make ends meet. What would you do?
If your solution is to buy or rent the cheapest possible house, we don’t blame you! Unfortunately, countless peopleface the same predicament and make the same decision every day. ThiscausesNew York City’s low-rent areas to become overpopulated and leads to frequent traffic congestion.
Modular homes solve this problem because they allow builders to quickly create low-rent localities for people to move into. This prevents the population density in certain areas from becoming too excessive and helps the city manage traffic better.
It Reduces the City’s Long-term Income Inequality
Have you ever heard of the term “income inequality”? It refers to the extent to which income is evenly distributed in an area. Unfortunately, income inequality is exceptionally high in New York City because the property market favors wealthy buyers. This is especially evident when it comes to mixed-use buildings.
If you’ve ever walked through downtown New York City, you might’ve seen an array of residential apartments with retail stores underneath. These are known as mixed-use buildings because they’re occupied by both residential and commercial tenants. Mixed-use buildings tend to be exceptionally expensive because they allow the owner to earn two rental income streams simultaneously. Therefore, they contribute to income inequality because they’re often bought by people who are already wealthy.
Fortunately, builders have begun developing modular mixed-use buildings that are much more affordable than traditional mixed-use buildings. This is reducing income inequality in New York City because people in low-income brackets now have a chance at investing in mixed-use buildings to build their wealth!
It Allows Homebuyers to Keep Up with Renovation Trends
According to Architectural Digest, one of the biggest renovation trends this year is the construction of home office spaces. This isn’t surprising given that working from home remains a popular choice among nearly 60% of the country’s workforce! With the home remodeling market estimated to be worth $430 billion this year,homeowners in New York are constantly on the look out for economical ways to renovate their homes. But what if you don’t have the budget to tear down and rebuild an area of your home into an office space?
Fortunately, it’s much cheaper to renovate modular homes compared to traditional homes. Modular homes are built by connecting modules with one another in the same way as Lego blocks. Therefore, if you want to renovate your modular home in New York, all you’ve got to do is order a new module. This is quicker and more economical than hiring rebuilders to break down an area of your home before renovating it.
If you’re thinking of renovating a modular home, we recommend opting for a builder that regularly manufactures modules. This will ensure you get a low price because the more modules a builder manufactures, the higher their economies of scale will be. In simpler words, they’ll charge you less for a home renovation because their average costs are likely to be low.
Modular homes are a core part of the future of New York’s real estate market. But what if you require financial assistance from a mortgage broker to buy a modular home in New York? If that’s the case, it’s time to reach out to our team of mortgage consultants at Atlantic Home Capital!
We provide modular mortgage loans at some of the best rates available and always do our best to get positive reviews from our clients. We also help clients apply for mixed-use financing to purchase traditional mixed-use buildings and offer jumbo non-conforming mortgage loans to help clients purchase prime real estate.
So, want to join the modular home revolution with the help of a Licensed mortgage lender NY? If so, get in touch with us today!
