Members of the Northern New Jersey Mastermind Group covered a variety of real estate topics, including multifamily and the effect of construction costs for 13 vs. 13R codes. According to Guest Jeffrey Garfinkel with Sterling Properties, everything that is happening with the building code, such as the push from 13R to 13 regulations and now extending concrete walls to the top of a building, is affecting cost. He recently did an analysis of the difference between 13R and 13 codes and found it was roughly higher by $17/SF. It is not considered a capital improvement cost that can be advertised like a bath renovation, but it is expensive.

Jeffrey also added that any softening in multifamily is occurring in areas that are not transit-oriented. Urban living is the new reality for Millennials and empty nesters alike. People don’t want to build private homes. They want a lifestyle property — to live, work and play near transportation, stores, entertainment, etc. And banks are willing to provide financing for this type of property.