Newark NJ Water Crisis and it's Housing Market
The lead in the water in Newark has caused an uproar throughout the city. Fortunately, government officials have found a resolution in the form of a $120 million bond. This bond is enough to cover the cost to replace the pipes. Government officials claim the financial burden won’t fall on the property owners or investors. Only time will tell on that aspect, but what has this done to Newark as a place to invest in real estate?
Will renters still look at Newark as a place they want to live? Will it send renters fleeing elsewhere?
In a few years, (they estimate 24-30 months to complete the pipe replacement),
The city has approximately 18,000 lead-filled pipes to replace. Now the city needs permission to gain access to each of the affected homes. Mayor Ras Baraka is pushing for legislation that would allow the city access to a home without permission. Almost 80% of the residents of Newark are renters. Without immediate access to the landlords, the pipe replacement project could take much longer than the intended 2 ½ years.
As of right now, the system is voluntary – landlords have to sign up for the pipe replacement. If they don’t, that leaves lead pipes in the homes of renters, leaving them vulnerable. The bill itself probably won’t go through until October or November.
Newark's real estate market prices has been increasing and the city recently announced a plan to develop vacant lots.
MTV recently hosted the VMA awards at Prudential Center which was a win for the city and an example of Newark as a City on the Rise and potential tourist destination, but this water crisis was like a cloud dimming the sunlight.