Earlier this month, Freddie Mac reported the average interest rate on a 30-year home loan rose to 7.57% from 7.49%; a 20-year-high. Many would-be buyers remember (perhaps sorely) that rates were as low as 2.5% only a few years ago.
The lower rates, contrasted against historically low housing inventory, created higher demand and pushed the market to prices at all-time highs. The prices have held steady even as sales experienced a 21% drop through the first three quarters of this year. High prices, high mortgage rates, very little selection… amenity-rich, new-construction rentals are more attractive than ever.
As many in Wilton Manors are feeling squeezed by rising rents, nearby Oakland Park’s appeal grows as one of Broward County’s most happening cities. Oaklyn, a massive newly constructed mixed-use rental development on the corner of Oakland Park Blvd and US-1 opened its doors to residential and retail tenants in mid-September.
Dan Deitchman, a principal with Newrock Partners, the developer of the Oaklyn acknowledged the good timing of their project.
“We started Oaklyn in 2018, so we couldn’t have known that interest rates were going to go down so low. Since then, the prices of real estate have gone up so much, so quickly. That’s absolutely driven people to the rental market.”
The last time Oakland Park saw developments approaching this many units of housing was in the 1990s; west of the interstate in Oakland Forest neighborhoods in the NW 30s. Of course, from there, you don’t have views of downtown, you’re not five minutes from the beach, and there isn’t a resort style rooftop pool deck with a state-of-the-art fitness center.
A closer comparison would be to look at Beach living versus Oakland Park living. One of the only developments on Fort Lauderdale beach that shares criteria like date constructed, square footage and amenities, is Tiffany House; a condominium allowing individual owners to rent their units. Built within the last five years, it has garage parking, business and fitness centers and pool. The monthly rental for similarly sized units at Tiffany House averages about $1,800 more per month than the Oaklyn. A key difference at Tiffany House is that tenants can walk to the beach in four minutes.
In any case, the City of Oakland Park welcomed this development with open arms. Deitchman said the community and city staff were very supportive throughout the process. The City of Oakland Park’s newsletter touted the recent influx of development. The “exciting array of development projects will create new housing, retail, office, entertainment, dining, and employment opportunities to support the local economy and bring Oakland Park’s extraordinary vision to life.”
The Oaklyn leasing office is open for tours seven days a week. www.liveoaklyn.com
Aaron Kinchen is a realtor in Fort Lauderdale with Better Homes and Gardens. Questions?