Most drivers will begin paying new congestion tolls on Jan. 5 to reach the heart of Manhattan, if all goes as planned. The fees are meant to relieve some of the world’s worst gridlock and pollution while raising billions of dollars for important upgrades to New York City’s subways and buses. Officials also hope to […] More
Sue Altman has made a name for herself by taking on political heavy hitters in New Jersey.First was Chris Christie, the famously pugnacious Republican governor, who, during a 2016 town hall, was so exasperated by her questions about education funding that he tossed his microphone to her.Three years later, she tangled with George Norcross III, then among the state’s most influential Democratic power brokers, as she led a drumbeat of criticism against corporate tax breaks awarded to companies with close ties to him.Now Ms. Altman is seeking to unseat Thomas Kean Jr., a first-term Republican congressman who is the scion and namesake of a former governor, in one of a handful of races nationwide that will determine whether Republicans retain control of the House.The result of Tuesday’s election in New Jersey’s Seventh Congressional District may say a lot about how Mr. Kean, 56, has campaigned in the race, where recent polls have prompted Democrats to mount a last-minute push in hopes of flipping the seat.Mr. Kean, a son of a former Republican governor, was elected to the House two years ago.Bryan Anselm for The New York TimesBut it also may offer insight into the direction of New Jersey and of suburban swing districts like the Seventh, an affluent and well-educated region split nearly evenly between Republicans and Democrats. President Biden beat Donald J. Trump there by four points in 2020, but two years later Mr. Kean beat the Democratic incumbent, Tom Malinowski, by about three points.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More
The e-commerce giant planned to build an airport cargo center, hire 1,000 workers and invest hundreds of millions of dollars over 20 years.For the second time, plans by Amazon to substantially expand its presence in the New York area have been abandoned after labor and community groups mobilized in opposition.In 2019, Amazon abruptly canceled plans to build a second headquarters in New York City after facing a barrage of criticism that it did not anticipate. This time, the e-commerce giant was unable to complete a deal for a cargo hub at Newark Liberty International Airport.The project, which hinged on a 20-year lease worth hundreds of millions of dollars, attracted opposition after the Port Authority disclosed it last summer.“Unfortunately, the Port Authority and Amazon have been unable to reach an agreement on final lease terms and mutually concluded that further negotiations will not resolve the outstanding issues,” Huntley Lawrence, the Port Authority’s chief operating officer, said in a statement on Thursday.Advocacy groups and unions involved had said they could not support the lease unless Amazon made a set of concessions that included labor agreements and a zero-emissions benchmark at the facility.“This victory signals that if Amazon wants to continue growing in New Jersey, it’s going to have to do it on our terms,” said Sara Cullinane, director of Make the Road New Jersey, an advocacy group that had questioned the deal.Amazon, which expressed confidence in May that the deal would close, expressed disappointment in a statement, adding that “we’re proud of our robust presence in New Jersey and look forward to continued investments in the state.”Amazon had estimated that the project would create more than 1,000 jobs, though many of those jobs could still be created if the Port Authority awards the lease to another company. Two other companies bid on the project.“The growth of air cargo and the redevelopment of airport facilities in a manner that benefits the region as well as the local community remain a top priority of the Port Authority,” Mr. Lawrence, the chief operating officer, added in his statement.The bigger long-term impact may be on Amazon’s ability to deliver packages efficiently in the Northeast, which it serves with airport hubs near Allentown, Pa.; Hartford, Conn.; and Baltimore. “Newark was the obvious choice,” said Marc Wulfraat, an industry consultant who closely tracks Amazon’s facilities. “It is right there on the doorstep of New York City.”Understand the Unionization Efforts at AmazonBeating the Giant: A homegrown, low-budget push to unionize at a Staten Island warehouse led to a historic labor victory. (Workers at another nearby Amazon facility rejected joining a similar effort shortly after.)Retaliation: Weeks after the landmark win, Amazon fired several managers in Staten Island. Some saw it as retaliation for their involvement in the unionization efforts.Diverging Outcomes: Why has a union campaign at Starbucks spread so much further than at the e-commerce giant?Amazon’s Approach: The company has countered unionization efforts with mandatory “training” sessions that carry clear anti-union messages.Mr. Wulfraat said Amazon could look for other commercial airports in the region, even if their locations were less ideal, to support the growing package volume.It was in part the company’s prominence in the state that attracted opposition to the project. A report produced by groups seeking to block it pointed out that the number of Amazon facilities in New Jersey grew to 49 from one between 2013 and 2020, helping to nearly triple the number of warehouse workers in the state, to about 70,000. Over the same period, the average wage for those workers fell to about $44,000 per year from over $53,000 per year, adjusting for inflation, according to Labor Department data.New Jersey is one of the more unionized states in the country, while Amazon has opposed unionization efforts at its facilities.Amazon said that average starting pay for its hourly workers is more than $18 nationally. The median hourly wage in New Jersey was about $23 last year. The company also cited its benefits, including full health coverage for full-time employees as soon as they start working; a 401(k) plan with a 50 percent company match; and up to 20 weeks of paid parental leave.The Port Authority revealed the proposed lease with Amazon in August, the day its board voted to authorize the deal. The authority said that it expected the lease to take effect on or around Nov. 1, according to minutes of the meeting.“It was something that they were trying to slip in without notifying the community, which was quite unfortunate,” said Kim Gaddy, executive director of the South Ward Environmental Alliance, which focuses on environmental issues affecting Newark residents. Under the proposed deal, Amazon tentatively committed to investing $125 million in renovating two buildings at the airport, and to paying the Port Authority more than $300 million over 20 years — including $150 million up front.Amazon’s plan for the Newark hub involved renovating two buildings at the airport.Bryan Anselm for The New York TimesBy September, the groups led by Ms. Cullinane and Ms. Gaddy, along with other advocacy groups and unions like the Teamsters and the Retail, Wholesale and Department Store Union, began to coordinate their opposition. The groups circulated petitions that collected thousands of signatures from residents and staged public events like rallies and a march.The project appeared to stall after the November timetable for finalizing the lease passed without any announcement.In late March, a spokeswoman for Gov. Phil Murphy, who had initially praised the deal, said in a statement that “the governor encourages anyone doing business in our state to work collaboratively with labor partners in good faith.” (The governor’s office declined to comment on Thursday.) Other politicians in the state appeared to grow skeptical after the Amazon Labor Union’s election victory this year at a Staten Island warehouse, a result Amazon is contesting.Amazon uses an airport facility in Allentown, Pa., to serve the surrounding region, but it has outgrown the capacity.Mark Makela/ReutersAmazon has opened air hubs in recent years to move products through its own logistics network, rather than rely on outside providers. It prefers to fulfill customer orders with local inventory, for cheaper, quicker delivery, but when the product a customer wants is not in a nearby warehouse, it will fly the product to meet its shipping promises.Its operations expansion went into overdrive during the pandemic as e-commerce sales boomed. “We doubled our capacity that we built in the first 25 years of Amazon in just 24 months,” Andy Jassy, the chief executive, told investors in May.But the company has acknowledged that it overbuilt, expanding and hiring more than demand required, and in April it posted its first quarterly loss since 2015. This year Amazon has pulled back from some investments. “We’re trying to defer building activity on properties where we just don’t need the capacity yet, and we’re going let some leases expire as well,” Mr. Jassy said. More
The region is home to the largest concentration of online shoppers in the country. The facilities, key to delivering packages on time, are reshaping neighborhoods.An e-commerce boom turbocharged by the pandemic is turning the New York City region into a national warehouse capital.In just two years, Amazon has acquired more than 50 warehouses across the city and its surrounding suburbs. UPS is building a logistics facility larger than Madison Square Garden on the New Jersey waterfront near Lower Manhattan.In Brooklyn, Queens and the Bronx, 14 huge warehouses to help facilitate e-commerce operations are rising, including multistory centers previously found only in Asia.Fueled by the soaring growth of e-commerce while so many Americans have been working from home, online retailers, manufacturers and delivery companies are racing to secure warehouses in the country’s most competitive real estate market for them.Every day, more than 2.4 million packages are delivered just in New York City, an online-buying mecca in a region of 20.1 million people.The feverish activity has already transformed the landscape of city neighborhoods and rural towns, transforming Red Hook in Brooklyn into a bustling logistics hub and replacing farmland in southern New Jersey with sprawling warehouses where packages are sorted, packed and delivered, often within hours of being ordered.An Amazon grocery hub in Red Hook, Brooklyn, which has emerged as a nexus of e-commerce warehouses in New York because it offers relatively easy access to Lower Manhattan, Queens and the rest of Brooklyn.Clark Hodgin for The New York TimesJust 1.6 percent of all warehouses in New York City and only 1.3 percent in New Jersey are available for lease, according to the real estate firm JLL; only the Los Angeles area has fewer warehouse vacancies in the United States. Some companies are converting buildings never intended to be warehouses. Amazon turned a shuttered supermarket in Queens into a makeshift package hub.The soaring demand for warehouses, once the ugly duckling of the real estate industry, underscores their pivotal role in a complex global supply chain. Nationwide, developers are pouring billions of dollars into the construction of new facilities, helping lift the commercial real estate sector, which has been battered by the emptying of offices during the pandemic.But the rise of warehouses has also sparked significant opposition. While they provide jobs and can lower residential property taxes by contributing to the local tax base, people across the region say the large hubs will lead to constant flows of semi-trucks and delivery vans that will worsen pollution and traffic congestion.Understand the Supply Chain CrisisThe Origins of the Crisis: The pandemic created worldwide economic turmoil. We broke down how it happened.Explaining the Shortages: Why is this happening? When will it end? Here are some answers to your questions.A New Normal?: The chaos at ports, warehouses and retailers will probably persist through 2022, and perhaps even longer.A Key Factor in Inflation: In the U.S., inflation is hitting its highest level in decades. Supply chain issues play a big role.They have also bemoaned the loss of open land to mega facilities. In recent months, residents in the southern New Jersey township of Pilesgrove, just across the Delaware River from Wilmington, Del., protested plans for a 1.6 million square-foot warehouse — larger than Ellis Island — on former farmland.While Amazon, major retailers and logistics operators such as UPS, FedEx and DHL dominated the initial wave of warehouse deals at the start of the pandemic, interest is now coming from smaller businesses seeking greater control of their supply chain amid a global bottleneck in the movement of goods.“I’ve been doing this for 30-some-odd years, and I’ve never seen it like this,” said Rob Kossar, a vice chairman at JLL who oversees the company’s industrial division in the Northeast. “In order for tenants to secure space, they are having to negotiate leases with multiple landlords on spaces that aren’t even available. It’s insane what they are having to do.”The rising cost to lease facilities has frustrated some small business owners who cannot compete with retail and logistics giants, as well as newcomers like Tesla and Rivian, which have opened showrooms and service centers for their electric vehicles in Brooklyn warehouses. Leasing prices for warehouses in the Bronx, for instance, have jumped 22 percent since the pandemic started.Warehouse jobs are still just a fraction of New York City’s labor force, but companies are on a hiring spree. Since 2019, the number of warehouse jobs doubled to 16,500 positions in late 2021. New hires at Amazon make around $18 an hour and get starting bonuses up to $3,000. But the company has also been fighting workers at some of its warehouses, including on Staten Island, who are trying to unionize to improve working conditions.Prose employs about 150 employees at its facility in Brooklyn from where it ships products across the United States and to Canada.Clark Hodgin for The New York TimesToday, nearly everything — from cars to electronics and groceries to prescription drugs — can be ordered online and arrive in as little as a few hours. In New York City, new companies are offering 15-minute grocery delivery.And though most retail sales nationwide still happen at brick-and-mortar stores, online sales are increasing at breakneck speed, growing by 50 percent over the last five years to reach 13 percent of all retail purchases, according to the census.That surge is pummeling many retailers, especially smaller businesses, that have also had to weather the loss of customers during the pandemic.At the onset of the pandemic shoppers switched to online buying at a rate that had been expected to take a decade to reach, according to analysts.Some large retailers, such as Target and Best Buy, that have a handful of warehouses in the region lean on their stores to fulfill online orders. Wal-Mart, the nation’s largest retailer, does not have a store in New York City so it uses a warehouse in Lehigh Valley, Pa., just over the border from New Jersey, and stores in surrounding suburbs to serve city residents.Amazon is taking a different approach. Across New Jersey to the northern New York City suburbs to Long Island, Amazon is cobbling together a sprawling network of fulfillment centers, package-sorting facilities and last-mile hubs. In the city it has set up a handful of facilities in the Red Hook and Sunset Park neighborhoods of Brooklyn.Amazon’s rapid expansion is not unique to the New York area. Last September alone, Amazon said in a recent earnings call, it added another 100 facilities to its delivery network in the United States.Red Hook, a neighborhood of just under a square mile bounded by water on three sides, has become a center for warehouses in the city because it is near major roadways into population centers in other parts of Brooklyn, Lower Manhattan and Queens.The owner of Prose decided to keep all his manufacturing under one roof before the supply chain problems emerged. “It has been a great decision,” he said.Clark Hodgin for The New York TimesAt least three new warehouses have opened in the neighborhood and more could be on the horizon. UPS paid $300 million for a 12-acre property, and two developers of logistics centers spent $123 million in December to buy several industrial sites there.How the Supply Chain Crisis UnfoldedCard 1 of 9The pandemic sparked the problem. More
Lawmakers are coalescing around a deal to suspend a $10,000 cap on state and local tax deductions that was imposed during the Trump administration.WASHINGTON — Democrats were readying an agreement on Tuesday that would repeal a cap on the amount of state and local taxes that homeowners can deduct as part of a broader $1.85 trillion spending bill, a move that could amount to a significant tax cut for wealthy Americans in liberal states.But some liberals quickly balked at the emerging agreement, which would suspend a $10,000 cap on the so-called SALT deduction for five years, removing a limit that Republicans included in their 2017 tax package as a way to pay for cuts for corporations and the rich. The suspension would kick in for deductions related to property taxes and state and local income taxes accrued in 2021 and would run through 2025.If it passes, the deal would be a major concession to a handful of Democrats from high-income states like New York and New Jersey who have insisted on lifting the cap, in order to win their votes for President Biden’s social policy and climate change package.But liberal Democrats have scoffed at the push to include the costly proposal in the domestic policy package, particularly as party leaders have curtailed or eliminated other spending priorities as they pare down a $3.5 trillion blueprint to appease moderate and conservative-leaning Democrats.Senator Bernie Sanders of Vermont, the chairman of the Budget Committee, blasted the repeal on Tuesday as a giveaway to the rich that went against the Democrats’ priorities.“I think there is a compromise to be reached here, a middle ground, which says that for families earning less than $400,000, they can take a complete exemption, but not families earning more than that,” said Mr. Sanders, who had released a blistering statement criticizing the agreement. “What exists is unacceptable, and one way or another it will be dealt with.”It remains unclear whether the agreement would apply broadly or if Democrats planned to impose an income cap to prevent the wealthiest Americans from receiving what amounts to a tax cut.A straight repeal of the cap for every household that claims the deduction would siphon huge amounts of revenue from the federal government: about $90 billion per year, according to budget experts.To get around that, the five-year suspension assumes that the cap is reinstated in 2026 for another five years, allowing Democrats to use a budget sleight of hand to show its removal as revenue neutral in the traditional 10-year window that lawmakers look to when considering a bill’s impact on the federal deficit.Three people with knowledge of the emerging agreement described it on the condition of anonymity and cautioned that discussions were continuing. Details of the talks were first reported by Punchbowl News.With Republicans opposed to Mr. Biden’s domestic policy plan, Democrats must win the support of all 50 senators who caucus with the party and all but three House lawmakers for the plan to become law. That effort is further complicated because Democrats are using an arcane process known as budget reconciliation, which shields fiscal legislation from the 60-vote filibuster threshold in the Senate.Those restrictions mean that any lawmaker, particularly in the Senate, could effectively tank the legislation over his or her priorities, including insisting that the bill repeal SALT. Democrats from the high-income states that have been most affected by the limit have spent the past five years searching for an opportunity to roll it back for their constituents, despite complaints that it would largely benefit the wealthy.House Democrats including Representatives Tom Suozzi of New York, Mikie Sherrill of New Jersey and Josh Gottheimer of New Jersey have made clear that they will not support the broader spending package without a SALT repeal. Mr. Gottheimer wore a large button emblazoned with the words “no SALT, no dice” to votes on Capitol Hill on Tuesday. Senator Chuck Schumer of New York, the majority leader, has also voiced support for getting rid of the cap.“We’ve been fighting for this for years,” Mr. Gottheimer said on Tuesday, adding that reinstating the full deduction would amount to giving “tax relief to families that deserve it and who got hosed in 2017.”Delaying the cap for five years in a 10-year window could effectively allow lawmakers to claim that the proposal would not have an impact on the package’s cost. Yet some Democrats appeared confident that lawmakers would act again in five years to prevent the cap from going back into effect.“It’ll be pretty clear when they get tax relief, it’s going to be hard to take that back,” Mr. Gottheimer said, referring to families in his district.The SALT limit resulted in tax increases for wealthier Americans beginning in 2018, particularly higher earners from high-tax states, and helped Democrats capture some House seats that Republicans previously held in New Jersey, California and elsewhere.The deduction is largely used by wealthy homeowners who itemize their deductions and live in states and cities with high taxes, which tend to be led by Democrats. Democrats accused Republicans of using the cap to pay for other tax cuts for the rich and to penalize liberal states.“My guess is the majority of Americans with a net worth of $50 to $300 million would get a tax cut under the Build Back Better plan with a full repeal of SALT,” Jason Furman, an economist at Harvard who was the chairman of the White House Council of Economic Advisers under President Barack Obama, said on Twitter on Tuesday. “The bill would do more for the super-rich than it does for climate change, childcare or preschool. That’s obscene.”But several lawmakers in the New York and New Jersey delegations have warned that their votes for the domestic policy package hinged on the inclusion of the provision, and Democrats have haggled for months over a possible solution.“We’re still going at it over it,” said Representative Richard E. Neal of Massachusetts, the Democratic chairman of the Ways and Means Committee, who joked on Tuesday that he had earned “a Ph.D. in the SALT deduction because it’s been argued from every perspective I can think of.”The Committee for a Responsible Federal Budget described the repeal of the SALT cap as a “regressive” tax cut, estimating that it would cost $90 billion a year in lost government revenue. The wealthiest would make out the best, with a SALT cap repeal distributing more than $300,000 per household in the top 0.1 percent of earners and only $40 for a middle-income family over the first two years.“With the SALT cap repealed and current tax rates retained, in fact, the reconciliation package might actually offer a net tax cut for most high-income households,” the group said.The right-leaning Tax Foundation estimated that repealing the cap would increase after-tax income of the top 1 percent of earners by 2.8 percent, while the bottom 80 percent would get minimal benefit.Republicans seized on the agreement on Tuesday, accusing Democrats of hypocrisy for backing an “anti-progressive” handout.“First Democrats cut out paid leave,” J.P. Freire, a spokesman for Republicans on the House Ways and Means Committee, said on Twitter. “Now they’re shoveling money to the rich.” More
AdvertisementContinue reading the main storySupported byContinue reading the main storySuburban Home Sales Soar in the New York RegionLines of cars at open houses and multiple offers above the asking price, often all cash, have become a regular occurrence.Open houses across the region, including one at this house in Port Washington, N.Y., have drawn crowds as sales inventory has dwindled during the pandemic.Credit…Tara Striano for The New York TimesVivian Marino and March 5, 2021, 5:00 a.m. ETHeading into the spring sales season, the housing market in the suburbs of New York has already gone into overdrive, with bidding wars becoming the norm and many homes selling within days of coming on the market.The frenetic sales activity — a second wave after a surge last summer — has been fueled by multiple forces: historically low mortgage rates; pandemic-fatigued city dwellers desperate for more space; and many employers’ willingness to embrace remote work, allowing buyers to look in places beyond what would be considered an easy commute.Another major factor: unusually tight inventory, as people hold onto their homes longer, which over the last few months in some suburbs has led to demand outstripping supply for the first time since the pandemic began.Brokers across the region report long lines at open houses, multiple offers coming in as soon as listings go live, and all-cash deals ruling the day. “This is the strongest market I have seen in two decades,” said Sara Littlefield, an agent in Connecticut with Coldwell Banker.“If there is a silver lining in this devastating pandemic, it’s that it has allowed people the freedom to make lifestyle choices like relocating, or downsizing, or moving up,” Ms. Littlefield added, “and they’re taking that freedom.”At the same time, Manhattan’s housing market has also finally picked up. “Contract activity first broke even back in December with year-ago levels,” said Jonathan J. Miller, a Manhattan-based real estate appraiser who also monitors suburban markets. Then it rose in the first two months of 2021, he said, adding that he expected the strong pace to continue through the spring.In a just-released February report for Douglas Elliman Real Estate, Mr. Miller found that signed contracts for all property types in Manhattan jumped 73.1 percent from a year ago. “It’s a combination of softer pricing, low rates and the distribution of the vaccine — people are feeling more safe about living in the city,” he said.Jeffrey Otteau, the president of the Otteau Valuation Group, based in Matawan, N.J., agreed that once-depressed urban areas would recover. “I don’t think anyone expected people would leave the city,” he said, “and never come back.”For those buyers focused on the suburbs, here’s a glimpse at what’s going on throughout the region.WestchesterBrisk could describe the weather and pace of sales in Westchester this winter, as the single-family sales market builds on its 2020 gains, from Pelham to Scarsdale to Armonk.A shortage of single-family houses explains the heightened competition. Starting last fall, demand began eclipsing supply, according to a new report from Douglas Elliman, and signed contracts have picked up since January: The busiest brackets have been houses priced from $1 million to $2 million, with $600,000 to $800,000 a close second.Among the crop of deals that closed this winter, the time from being listed to going into contract had shrunk to just two months, according to Julia B. Sotheby’s International Realty, though brokers say that spread can be misleading because much of the time is eaten up by overworked bankers and lawyers completing paperwork.In actuality, some houses are finding new owners shortly after hitting “coming soon” websites.“Buyers think they are buying at the peak, but at the same time, they’re still doing it,” said Jennifer Meyer, a Compass agent, who received an offer on a six-bedroom Tudor-style house in Pelham, listed for $1.275 million, on Feb. 26, two days after it went live.Low interest rates and scarce inventory, which are national trends, explain some of the local spike in demand and prices. But other factors are also in play.Troy Benson, left, and Nolan Fitzgerald are relocating from Manhattan to Armonk, N.Y., a suburban hamlet in Westchester County.Credit…Karsten Moran for The New York TimesAfter spending extended time outside of New York to avoid coronavirus, lockdowns and street protests, some buyers warmed to the idea of full-time nonurban life. Troy Benson, 37, who owns a marketing firm, and his husband, Nolan Fitzgerald, 34, who works in fashion, so enjoyed the months spent in their weekend house in Orange County that they decided to stay out of the city for good.After selling the vacation property — in two days, for 15 percent more than its asking price — as well as their condo in the South Street Seaport, the couple are in contract for a midcentury modern house by Edgar Tafel on six woodsy acres in Armonk last listed at $2.475 million.“New York is very high energy,” said Mr. Benson, who will scale down his time in his Manhattan office to just a few days a week. “But I think a lot of people get addicted to the energy and get stuck.”Recent converts to Westchester, brokers say, also include New Yorkers facing expiring leases on the rentals they escaped to last spring and who are now angling for more permanent addresses, further pressuring the market.But it’s not just transplants who are being squeezed. Last year, Marialena Pulice, 39, a school psychologist, and her husband, Chris, 39, who works in finance, made offers on 15 houses, most of which were rejected. “We were outbid, or the seller would go with somebody who had a bigger down payment,” Mr. Pulice said. “Houses were being scooped up left and right.”Late last year, a three-bedroom house in Hawthorne, listed at $589,000, caught the eye of the couple. But their above-ask offer of $595,000 was not enough to seal the deal — at least until the first buyer backed out. The Pulices, who have a young son, have been staying with Ms. Pulice’s parents and will move into their new home this month. “I really can’t wait,” Mr. Pulice said.Homes are selling fast in Montclair, N.J. “The only houses on the market that are sticking around are those that are not so wonderful,” said Roberta Baldwin, an agent with Keller Williams.Credit…Tom Sibley for The New York TimesNew Jersey“The spring market really began in October — that’s how crazy it’s been,” according to Vicki Gaily, a real estate agent based in Saddle River, N.J.As soon as pandemic restrictions eased, Ms. Gaily, the founder of Special Properties, a division of the real estate firm Brook Hollow Group, noticed a burst of pent-up demand, largely from people fleeing urban areas. “I haven’t had a day off since,” she said.Her biggest challenge — and the task facing other harried agents across the state — is finding enough available properties to sell at all price points.As of January, there were nearly 44 percent fewer homes listed for sale in New Jersey from a year ago, according to the New Jersey Realtors trade association. At the same time, closed sales rose during the month by 17 percent and the median sales price surged about 20 percent.“I’ve never seen the inventories as low as they are now,” Ms. Gaily said, noting that in Saddle River, which is in Bergen County, there are “maybe 40 homes” available right now, down from the usual range of 55 to 85 this time of year.Farther south, in Westfield, in Union County, “we have about a third of what we should have in inventory this time of year,” said Frank D. Isoldi, an agent at Coldwell Banker Realty based in Westfield. The result, he said, has been homes being snatched up quickly after multiple bids, and often above asking price.“The only houses on the market that are sticking around are those that are not so wonderful,” said Roberta Baldwin, an agent with Keller Williams Realty who is based in Montclair, in Essex County, where bidding wars are also more common.To help get a leg up on the competition, one of her clients, Brian Herlihy, a 42-year-old financial analyst from Manhattan’s Upper West Side, actually devised a bidding formula last summer, based on the price per square foot of comparable sold properties. “But even then we got outbid,” he said.Emily McDonald and Brian Herlihy recently moved into a fully renovated colonial in Upper Montclair, N.J., but only after the original winning bidder backed out.Credit…Tom Sibley for The New York TimesIn the end, after several unsuccessful bids, Mr. Herlihy and his partner, Emily McDonald, a 38-year-old high school teacher from Brooklyn, managed to move into a fully renovated, four-bedroom colonial in Upper Montclair — but only after the original winning bidder backed out of the deal. Mr. Herlihy paid $1.1 million for the home, which was about $100,000 over his maximum budget.Jaclyn and Zach Plotkin also exceeded what they had hoped to pay when recently buying an Upper Montclair colonial. “We paid a lot over — I don’t want to say how much,” said Ms. Plotkin, 28. “When we started looking, we were less comfortable with bidding over the asking price, but then we came to realize that we had to in order to get a house.”The couple and their infant daughter plan to move from their Midtown East apartment sometime this spring.Tom and Alicia Monforte were filling out paperwork to buy their house in Bellmore, N.Y., just two hours after seeing it.Credit…Adam Macchia for The New York TimesLong IslandBuyers throughout Long Island are likely to face continued competition, too, along with rising prices, in large part because of the shrinking supply of available homes..css-1xzcza9{list-style-type:disc;padding-inline-start:1em;}.css-c7gg1r{font-family:nyt-franklin,helvetica,arial,sans-serif;font-weight:700;font-size:0.875rem;line-height:0.875rem;margin-bottom:15px;color:#121212 !important;}@media (min-width:740px){.css-c7gg1r{font-size:0.9375rem;line-height:0.9375rem;}}.css-rqynmc{font-family:nyt-franklin,helvetica,arial,sans-serif;font-size:0.9375rem;line-height:1.25rem;color:#333;margin-bottom:0.78125rem;}@media (min-width:740px){.css-rqynmc{font-size:1.0625rem;line-height:1.5rem;margin-bottom:0.9375rem;}}.css-rqynmc strong{font-weight:600;}.css-rqynmc em{font-style:italic;}.css-yoay6m{margin:0 auto 5px;font-family:nyt-franklin,helvetica,arial,sans-serif;font-weight:700;font-size:1.125rem;line-height:1.3125rem;color:#121212;}@media (min-width:740px){.css-yoay6m{font-size:1.25rem;line-height:1.4375rem;}}.css-1dg6kl4{margin-top:5px;margin-bottom:15px;}.css-16ed7iq{width:100%;display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-align-items:center;-webkit-box-align:center;-ms-flex-align:center;align-items:center;-webkit-box-pack:center;-webkit-justify-content:center;-ms-flex-pack:center;justify-content:center;padding:10px 0;background-color:white;}.css-pmm6ed{display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-align-items:center;-webkit-box-align:center;-ms-flex-align:center;align-items:center;}.css-pmm6ed > :not(:first-child){margin-left:5px;}.css-5gimkt{font-family:nyt-franklin,helvetica,arial,sans-serif;font-size:0.8125rem;font-weight:700;-webkit-letter-spacing:0.03em;-moz-letter-spacing:0.03em;-ms-letter-spacing:0.03em;letter-spacing:0.03em;text-transform:uppercase;color:#333;}.css-5gimkt:after{content:’Collapse’;}.css-rdoyk0{-webkit-transition:all 0.5s ease;transition:all 0.5s ease;-webkit-transform:rotate(180deg);-ms-transform:rotate(180deg);transform:rotate(180deg);}.css-eb027h{max-height:5000px;-webkit-transition:max-height 0.5s ease;transition:max-height 0.5s ease;}.css-6mllg9{-webkit-transition:all 0.5s ease;transition:all 0.5s ease;position:relative;opacity:0;}.css-6mllg9:before{content:”;background-image:linear-gradient(180deg,transparent,#ffffff);background-image:-webkit-linear-gradient(270deg,rgba(255,255,255,0),#ffffff);height:80px;width:100%;position:absolute;bottom:0px;pointer-events:none;}#masthead-bar-one{display:none;}#masthead-bar-one{display:none;}.css-1pxllx6 header h4{font-family:nyt-cheltenham,georgia,’times new roman’,times,serif;font-weight:500;font-size:1.25rem;line-height:1.5625rem;margin-bottom:5px;}@media (min-width:740px){.css-1pxllx6 header h4{font-size:1.5625rem;line-height:1.875rem;}}.css-1pd7fgo{background-color:white;border:1px solid #e2e2e2;width:calc(100% – 40px);max-width:600px;margin:1.5rem auto 1.9rem;padding:15px;box-sizing:border-box;}@media (min-width:740px){.css-1pd7fgo{padding:20px;width:100%;}}.css-1pd7fgo:focus{outline:1px solid #e2e2e2;}#NYT_BELOW_MAIN_CONTENT_REGION .css-1pd7fgo{border:none;padding:20px 0 0;border-top:1px solid #121212;}.css-1pd7fgo[data-truncated] .css-rdoyk0{-webkit-transform:rotate(0deg);-ms-transform:rotate(0deg);transform:rotate(0deg);}.css-1pd7fgo[data-truncated] .css-eb027h{max-height:300px;overflow:hidden;-webkit-transition:none;transition:none;}.css-1pd7fgo[data-truncated] .css-5gimkt:after{content:’See more’;}.css-1pd7fgo[data-truncated] .css-6mllg9{opacity:1;}.css-k9atqk{margin:0 auto;overflow:hidden;}.css-k9atqk strong{font-weight:700;}.css-k9atqk em{font-style:italic;}.css-k9atqk a{color:#326891;-webkit-text-decoration:none;text-decoration:none;border-bottom:1px solid #ccd9e3;}.css-k9atqk a:visited{color:#333;-webkit-text-decoration:none;text-decoration:none;border-bottom:1px solid #ddd;}.css-k9atqk a:hover{border-bottom:none;}The World’s Tallest BuildingsLearn More About N.Y.C. SkyscrapersLuxury developers use a loophole in the city’s zoning laws to build these soaring towers in New York City. This may be one reason why these supertall buildings are facing a range of problemsTake a look at the view from 432 Park Avenue as it was being built.The current high-rise building boom, with more than 20 buildings that are more than 1,000 feet tall built or planned since 2007, has transformed New York City’s skyline in recent years. Its impact will echo for years to come in Manhattan and the boroughs.Tall, skinny buildings tend to sway slightly in the high wind. To keep residents from feeling this movement, developers are placing giant counterweights at the top to slow building motion. Take a step back and take a look with our critic at some supertall N.Y.C. buildings and how the ingenuity of engineers helped build landmarks like Black Rock.“In the last two months we’ve seen such a depletion of new inventory that sales growth has been nominal,” said Mr. Miller, the Manhattan-based appraiser who also follows the Long Island market. He noted in the Douglas Elliman report that signed contracts in February were flat from a year ago, while inventory levels, excluding the Hamptons and the North Fork, fell nearly 37 percent. “That’s a free-fall.”(The Hamptons saw a 72 percent jump in signed contracts in February for single-family homes, according to Mr. Miller, and an almost 38 percent drop in new listings.)On the South Shore of Long Island, there’s about a month’s supply of available homes, or even less, in some areas, agents say. “We would normally have five to six months’ worth at any one time,” said Seth Pitlake, an agent at Douglas Elliman in Merrick. “It’s not that inventory is not increasing,” he said, “it’s just that anything that comes out in the market is being scooped up.”Mr. Pitlake’s clients, Tom and Alicia Monforte, both in their early 30s, witnessed these tight conditions as both seller and buyer. Their Great Neck co-op sold in a week, but when they began searching for a larger property farther east, in Bellmore, they found themselves in a crowded field of purchasers.“We would put in an offer only to find out someone else offered $40,000 over the asking price,” said Ms. Monforte, a clinical social worker, adding that “every free moment was devoted to looking.”The couple recently found a house at the end of a long day of hunting. “It was the last house we looked at out of seven,” Ms. Monforte said. The home — a 2,200-square-foot, five-bedroom high ranch with a $649,000 price tag — had just been re-listed after a previous deal fell through. “After five minutes we knew,” she said, “and in two hours we put in an offer for the full ask that was accepted.”Similar scenarios of stiff competition are playing out on the North Shore. Mr. Pitlake’s Roslyn colleague at Douglas Elliman, Maria Babaev, who specializes in the so-called Gold Coast, recently listed a five-bedroom, split-level in Roslyn Pines that “needs lots of work.”In just one showing, she said, “I had 27 groups of buyers coming in and received eight offers, three above asking.” The winning bid: 10 percent above the $999,000 list price. Ms. Babaev said more expensive homes were selling faster than usual, though she was quick to add that all property types needed to be competitively priced to garner any interest.And what do buyers want? “They want green space,” said James Gavin, an agent with Laffey Real Estate in Manhasset, “and a lot are asking for a home office and then a pool.”Single-family houses have seen a bounce in activity this winter in Westport, Conn.Credit…Jane Beiles for The New York TimesConnecticutIn Fairfield County, towns that struggled with flat sales a year ago have seen major bounces.There are also far fewer houses to go around than at any time since the pandemic began, which is starting to cut into sales volume, according to Douglas Elliman. In February, there were 510 signed contracts, versus 623 in February 2020. Greenwich, though, has posted huge gains in the new year: February saw 108 signed deals as compared with 42 a year ago, according to Elliman.Gains were perhaps expected south of the Merritt Parkway, whose popularity derives in part from regular train service. Indeed, in the past two months, Westport saw 33 sales of single-family homes priced from $1 million to $2.5 million, compared with 19 sales last winter, according to William Pitt Sotheby’s International Realty.But points north were strong as well. Ridgefield had 18 similar sales, according to Sotheby’s, up from six, and New Canaan had 55, up from 11; countywide, there is almost no difference between list and closing prices.But as potential sellers cancel plans to downsize because of suddenly back-at-home children or over worries about finding new homes, supply has been crimped, and the steady stream of New Yorkers searching for homes into the county have created cutthroat conditions.“Briefcases full of cash are coming in. It’s been crazy,” said Alex Ramsey, 38, a financial-services worker who for the past year has been trying to relocate his family from their four-bedroom house in Stamford to a five-bedroom in either Westport or New Canaan. One house they liked had 45 showings in two days, Mr. Ramsey said, “and a line of cars with New York plates filling the cul-de-sac.”Six of Mr. Ramsey’s offers have been rebuffed so far, with the most recent in January, when he failed to connect on a Westport house despite offering a 10 percent premium: “There seems to be so much irrational behavior.”A year ago, the Noroton Heights section of Darien had 67 active listings but there are only 17 today, said Sara Littlefield, a Coldwell Banker agent, who canceled an open house for a shingle-sided 1950s five-bedroom, listed $1.595 million, because she got four offers beforehand.Pre-Covid, buyers asked to be 10 minutes from train stations. But now, because they don’t have to be in the office as much, if at all, that requirement is moot. “Working from home is the future,” Ms. Littlefield said, “and a lot of people seem OK with it.”Lori Elkins Ferber (left), a Sotheby’s broker, talks with Susan and Noah Klein in downtown Westport. Since last summer, the Kleins have bid unsuccessfully on three houses in the town.Credit…Jane Beiles for The New York TimesYet even as buyers are acting quickly, speed can lead to problems. Susan Klein, and her husband, Noah, retired residents of White Plains, N.Y., had their hearts set on Westport when they began looking last June. After two failed purchases, they swooped in last month with an all-cash offer for a four-bedroom house, listed for $1.749 million. And it seemed to do the trick; a contract was in the works.But a rushed title search missed problems, and on Feb. 24, the Kleins walked away. (The seller upped the price to $1.849 million a day later.) “This frenetic market forces you to make very quick decisions,” Ms. Klein said, “which you may need to change.”For weekly email updates on residential real estate news, sign up here. Follow us on Twitter: @nytrealestate.AdvertisementContinue reading the main story More
#masthead-section-label, #masthead-bar-one { display: none }The Coronavirus OutbreakliveLatest UpdatesMaps and CasesRisk Near YouVaccine RolloutNew Variants TrackerAdvertisementContinue reading the main storySupported byContinue reading the main storyHow New Jersey Averted a Pandemic Financial CalamityA $44.8 billion spending plan unveiled Tuesday by Gov. Phil Murphy calls for no new taxes and fully funds the state pension program for the first time since 1996.Gov. Philip D. Murphy of New Jersey released a $44.8 billion budget on Tuesday that shows better-than-expected revenue projections.Credit…Pool photo by Anne-Marie CarusoFeb. 23, 2021Updated 3:07 p.m. ETIt has been five months since New Jersey officials issued warnings about a coronavirus-related financial calamity. The dire outlook contributed to lawmakers’ decisions to increase taxes on income over $1 million and to become one of the first states to borrow billions to cover operating costs.But the doomsday forecast has since brightened considerably, officials said, enabling the Democratic governor, Philip D. Murphy, to unveil a $44.8 billion spending plan on Tuesday that calls for no new taxes, few cuts and tackles head-on a chronic problem — the state’s underfunded pension program — for the first time in 25 years.The governor also said there would be no increase in New Jersey Transit fares.“The news is less bad,” the state’s treasurer, Elizabeth Maher Muoio, said. “I wouldn’t say it’s good, but it’s less bad.”The governor’s election-year financial blueprint relies on better-than-expected revenue from retail sales and high-earners, who have lost fewer jobs during the pandemic than low-income workers and are reaping the benefits of a prolonged Wall Street rally.The $38 billion that New Jersey and its residents have received in federal stimulus funding, a short-term extension of a corporate tax and a $504 million windfall from the so-called millionaire’s tax also helped, Ms. Muoio said.The release of New Jersey’s proposed 2022 fiscal year budget comes as Congress continues to debate President Biden’s $1.9 trillion virus relief package. The proposed package includes considerable funds for states and municipalities as well as grant and loan programs for small businesses.Other states have seen similarly strong signs of an economic rebound even as cases of the virus have spiked nationwide over the last several months and the nation’s death toll surpassed 500,000 on Monday.Earlier this month, the nonpartisan Congressional Budget Office concluded that large sectors of the economy were adapting to the pandemic better than originally expected and that December’s economic aid package had helped.Mr. Murphy, who is running for re-election in November, said the spending plan was designed to not only enable the state to scrape through the pandemic, but to help it emerge stronger.“This is the time for us to lean into the policies that can fix our decades-old — or in some cases centuries-old — inequities,” the governor said Tuesday in a budget address, which he delivered virtually.A key pillar of the budget is a proposal to fully fund the state’s public sector pension obligations for the first time since 1996.The state has not set aside the full amount of its pension obligation for 25 years, leading $4 billion in extra debt to accrue over time, Ms. Muoio said. Under a deal brokered with the Legislature, Mr. Murphy had been on track to fully fund the state’s share by the 2023 fiscal year. But the spending plan released on Tuesday sets aside $6.4 billion for the pension system, accelerating full funding by a year.“New Jersey is done kicking problems down the road,” the governor said. “We are solving them.”Under the plan, the state’s surplus, which proved to be a vital resource during the first wave of the pandemic, would not grow, officials said, but would remain at about the same level it was at the end of 2020.The Coronavirus Outbreak More
#masthead-section-label, #masthead-bar-one { display: none }The Coronavirus OutbreakliveLatest UpdatesMaps and CasesSee Your Local RiskVaccine InformationWuhan, One Year LaterMarjorie Perry, a contractor, is one of the builders turning an abandoned bank into an apartment building and poets cafe.Credit…Bryan Anselm for The New York Times‘One Property at a Time’: A City Tries to Revive Without GentrifyingNeighborhoods in Newark are beginning to see a flurry of redevelopment, a decade after the city’s downtown gained vogue.Marjorie Perry, a contractor, is one of the builders turning an abandoned bank into an apartment building and poets cafe.Credit…Bryan Anselm for The New York TimesSupported byContinue reading the main storyFeb. 2, 2021, 5:00 a.m. ETNEWARK — Construction workers in the South Ward of Newark, one of New Jersey’s most distressed areas, are busy converting a long-abandoned bank into an apartment building and poets cafe.A decrepit mansion in the Central Ward built by a Newark beer baron before the turn of the 20th century is being revamped as a “makerhood,” a first-of-its-kind co-working residential and retail space.Siree Morris, a developer, recently finished erecting six three-bedroom apartments on a formerly vacant lot. Next up: condos made from shipping containers and an affordable-housing complex named for his slain brother, Michael, on the street where they grew up.While the downtown corridors of Newark, a poor industrial city burdened by decades of disinvestment, have been on the rebound for years, much of the rest of the city had been largely left behind.But now even the city’s far-flung residential neighborhoods are in the midst of a slow recovery.The transformation, fueled largely by a push to expand affordable housing and homeownership in this city of renters, is part of a deliberate strategy with an ambitious goal: erasing Newark’s long legacy of blight without pushing out residents, 86 percent of whom are Black or Latino.“It’s coming up the hill, into the inner city,” Arnita Rivers, a Newark resident who runs a variety store and barbershop and also works as a housing contractor, said of redevelopment.Credit…Bryan Anselm for The New York TimesThe challenge of avoiding gentrification while revitalizing a city once synonymous with urban decay is steep.More than a quarter of Newark’s 282,000 residents live in poverty and only 22 percent own homes. Many neighborhoods are still reeling from the 2018 discovery of elevated levels of lead in tap water.Streets are pockmarked by an estimated 2,000 vacant lots, haunting reminders of the middle-class exodus that began before the city erupted in flames during five days of deadly unrest in 1967 and accelerated in the decades that followed.And Newark, New Jersey’s largest city, is now struggling under the catastrophic weight of the coronavirus: One in 342 residents has died from virus-related complications.But there are also signs of hope. Side streets are alive with forklifts and hard hats. Older men gather on corners, sharing stories of days gone by and expressing optimism for even the most overlooked swaths of the city. A breakfast for homegrown entrepreneurs — an extension of monthly “men’s meetings” initiated by Newark’s mayor, Ras J. Baraka — attracted 2,500 just before the start of the pandemic.“You take it one property at a time, one parcel at a time,” said Mr. Morris, 38, who has continued to build throughout the pandemic. “That’s the only way to rebuild a community.”Fifteen miles from the heart of Manhattan, Newark’s downtown commercial district has successfully lured housing developers, a Nike factory store, a Whole Foods Market and the corporate headquarters for Audible, Amazon’s audiobook and podcast service.But in the last five years, more than 3,500 units of affordable housing have also been built or are underway, much of it outside downtown, city records show. Newark sold almost double the number of abandoned parcels at auction in 2020 as it did in 2019, and the average price of land — none of it downtown — was about 30 percent higher. Between 2015 and 2020, major crime, including murder, robbery and assault, plummeted by 40 percent.“This right here is extremely personal to me,” said Siree Morris, a lifelong resident of Newark whose company recently finished construction of two new apartment buildings on a formerly vacant lot.Credit…Bryan Anselm for The New York TimesBig neighborhood projects, like a $100 million expansion of Beth Israel Medical Center, are moving forward alongside smaller ones, including a 51-unit housing complex for seniors and the renovation of three homes that will be sold to residents of public housing using Section 8 vouchers.Even the brutal economic fallout of the pandemic is not expected to erase Newark’s gains.“They took advantage of the growth in downtown, and the strength, and they put effort into all of the wards,” said Doug Goldmacher, an analyst with Moody’s Investors Service, a financial rating agency.The Coronavirus Outbreak More
