Foreclosed Multi Family Homes for Sale Rising in New York

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Foreclosed Multi Family Homes for Sale Rising in New York

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The number of foreclosed multi family homes for sale in New York City has risen in the past few years. A study conducted by the Furman Center for Real Estate and Urban Policy of New York University has revealed that foreclosure notices issued to rental multifamily structures with at least five units have risen in the past two years.

According to the study, single family foreclosure homes in New York City have dominated housing reports, but the rise in foreclosures among multifamily rental dwellings in the area have actually risen at a pace that has not been seen since the early part of the 1990s. In addition, such foreclosures actually affect more people since rental multifamily buildings house almost 50% of all New York residents.

The center's report showed that since at least 2007, over 2,100 rental multifamily properties have received notices of foreclosure in the city, with over 44,000 households believed to have been affected by these notices. Among the boroughs, Brooklyn reportedly has the most number of multifamily foreclosed homes for sale in New York City. The report claimed that this may be partly due to the fact that the area has the biggest stock of small rental multifamily homes, with most of them ranging between five and 19 units.

In Brooklyn, nearly 1,500 multifamily rentals have received notices of foreclosures since 2007, affecting nearly 15,000 residential units. The study also revealed that seven out of the ten neighborhoods with the highest number of foreclosed multi family homes for sale in the city can be found in Brooklyn. Last year, a total of 373 foreclosure notices were issued to Brooklyn multifamily rentals, the report also claimed, with Bedford-Stuyvesant accounting for 18% of these foreclosure-related notices.

The increased number of multifamily foreclosed property for sale in New York City, market analysts have stated, affects tenants and whole neighborhoods, particularly those with huge supplies of multifamily rentals. Most of these multifamily buildings, they further added, are deteriorating as they remain distressed and unoccupied. Such distressed buildings usually receive 21% more code violations within the quarter when the notice of foreclosure has been filed.

During the six months following the foreclosure notice, an average of 15% more code violations are often reported for these properties. The report also asserted that these foreclosed multi family homes for sale can be really costly for the city. Moreover, local communities, households and the general housing market are also affected by the deteriorating properties, particularly in hard-hit boroughs like Brooklyn.