Avalon Harrison development next to the Metro-North. Photo by Camille Maren.
I am comfortable saying that almost any construction you see today in Westchester is a new apartment building. No one is building any office buildings. We have too many now, and are reducing inventory by demolishing obsolete buildings, converting them to medical use and (in just a few cases) converting them to apartments.
There is a huge housing shortage throughout the United States. A county like Westchester, which is very densely populated and built-out, literally has very little land to build single-family homes.
As of July 2024, the median listing price for a home in Westchester County is $736,500, and the median sold price was $825,000. Potential homebuyers are discouraged by these high prices, high interest rates, and low inventory.
Many empty nesters are staying in their family homes, as they cannot find smaller homes in desirable neighborhoods that will actually save them any money. Young people have issues saving up a six-figure down payment, and almost any house they would buy would need expensive, significant renovations.
The only way to create significant housing is to go up, with high-rise buildings. The apartments themselves are generally very small, and the proportion of studio and one-bedroom units dwarf the number of two- and three-bedroom apartments. But where you watch TV and sleep is only the beginning of what apartment buildings (really communities) are today.
My daughter recently moved into one of the new apartments in downtown White Plains, which was converted from an old office building – and I was absolutely blown away by the total environment the developers created.
The apartment was just the start. A one bedroom with a den, it had 12-foot ceilings, was very nicely finished with a beautiful kitchen with top-shelf appliances and a large bathroom. It had large windows in the living room and bedroom. The den does not have a window, but it serves as a nice room for an office or TV watching, which was part of the attraction of this model for her.
But it was when I got a tour of the building that my eyes really opened up to the entire lifestyle that was outside the apartment.
First, was a trip to the Penthouse Floor. It featured a large, beautifully furnished lounge. The Game Room featured foosball, air hockey, a poker table and arcade games.
A Dining Room can be reserved for entertainment. There are also two multi-sport game simulators (for golf and other games).
The large Rooftop Deck featured barbeque grills, firepits, and comfortable outdoor furniture and firepits.
The building also had a two-story Fitness Center with top-of-the-line equipment.
On the roof of the adjacent building, there is an Outdoor Pool with lounge chairs and an indoor poolside lounge.
In case you work from home, there are co-working spaces with phone booths, as well as conference rooms available to reserve.
The building is pet-friendly (including a pet-washing station) – and has storage rooms and rooms for bicycles.
If you need or want something, you are within walking distance of restaurants, bars, CVS, banks, services, a movie theater, and shops.
If something breaks or needs maintenance, just go to the building’s portal and put in a ticket for the work that needs to be done. No hiring gardeners, snow shovelers, plumbers, or electricians.
From a developers point of view, there are also many advantages. Apartments today are in high demand. They have a very broad range of potential renters, from young people through empty nesters and seniors – including single people, people with partners and people with children.
If an apartment goes vacant, it only takes cleaning and some paint to make it ready to rent again. Lease terms are typically one-year, which gives them the ability to raise rents based on demand. If the market is slow, they can reduce the rent a bit, or offer a free month to make the deal, and still have the ability to re-price in a year or so.
However, the cost to build an apartment building in Westchester these days is approximately $800,000 per unit, which includes studios and one-bedrooms of well less than 1,000 square feet. Construction costs have escalated greatly in the last few years, and high-rise construction with structured parking and a full package of amenities adds even more to the cost.
Apartment developments in Westchester are typically replacing (depending on location) obsolete office buildings, small residential buildings, and other less valuable real estate. They pay many multiples of the real estate taxes that the former buildings paid.
The new apartments typically produce very few children for the school systems, and those costs are covered even in the PILOTS (Payment In Lieu Of Taxes), which are typically granted to developers.
This is unfortunately overlooked by Westchester’s CAVE People (also known as Citizens Against Virtually Everything), who think the only good development is a dog park, which has no traffic, is all green, and produces no homes for people and no taxes to support their services.
Many thousands of new apartments have been built, and many thousands more are in the pipeline. The demand continues for them.
While rental prices are high, the new inventory will reduce the pricing as alternatives for renters increase. It is simple supply and demand.