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New York

Construction loans in NYC surge amid gentrification

Mortgages up 24 percent during the first half of year compared to same period in 2012

247 Hancock Street in Bed-Stuy, and Jonathan Miller
247 Hancock Street in Bed-Stuy, and Jonathan Miller

New York City construction loans are on the rise as neighborhoods such as Harlem and Bedford-Stuyvesant undergo a major makeover.

The number of loans increased 24 percent to 233 during the first half of this year compared to the same period in 2012. The U.S. arm of TD Bank, for example, saw construction loan volume in the New York area grow by 15 percent through mid-November compared with all of last year, Bloomberg News reported.

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Brooklyn residents who are renovating homes in Crown Heights, Bushwick and Bed-Stuy also live in those properties. During the housing boom, speculative homebuyers were the ones largely upgrading them.

“Some of the highest concentrations of distressed properties were in these brownstone markets,” Jonathan Miller of Miller Samuel told Bloomberg. “We’re seeing a new version now, which is more owner-occupied, and that’s better for the market.” [Bloomberg News] — Mark Maurer

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Bed-StuyConstructionHarlem