NYC Real Estate Prices (for now) & Skyscrapers continue to rise
New York City.
NYC is still the destination for real estate investors and people wanting to live in the greatest city in the world. (Yes, even after the Chinese stock market downturn. More on that in another post). Rents and Sale Prices continue to be at pre 2008 levels and we anticipate a continued strong market at these price points.
Every day another rental building, luxury condo or major mega development rises in areas once zoned for manufacturing and industrial purposes. Many of these past commercial sites have been converted or demolished to make way for needed residential housing.
Many New Yorkers, me included, kvetch about NYC changing too quickly and losing our favorite haunts. We also complain about the high rents and all know the huge need for permanent affordable housing. Yet, I still love NYC and am still amazed how much we are building and how strong the real estate values continue to be.
Miller Samuel Inc. reports the Manhattan sales to rent price ratio continues to rise for NYC real estate. Chart here:
And the NY Real Deal has the priciest apartment sales of the week of August 11th:
Brooklyn and Manhattan Rents Continue to Rise. In Some Parts of Queens, it is more expensive to rent than Brooklyn!
According to Curbed NY last week, Manhattan and Brooklyn rents keep breaking records. Median Manhattan rent is up 6.6 percent year-over-year, from $3,205 to $3,418, according to the Elliman report. It cites Brooklyn median rents over $2900 for a one bedroom.
The borough of Queens (my homeland), specifically northwest Queens, rents were slightly beating Brooklyn median rents. According to Katherine Clarke, of the Daily News, citing the Elliman report, particularly Long Island City rents have risen rapidly-“The median rent for an apartment in northwest Queens, which includes Long Island City, came in at $3,016 a month, a 14% gain since last year and a clip above the $2,968 median recorded in Brooklyn, the report shows.”
Will increased inventory and other economic factors change the NYC housing market?
Most experts say only that it will become more of a “normal” market, more of a buyer’s market with more inventory and more deals being done.
NYC is becoming one big construction site, with cranes everywhere in the sky. Developers are literally building a new neighborhood, Hudson Yards around our apartment.
I am still in awe when I see a new building go up as the new tower at 10 Hudson Yards has taken over some of the sky, near my home, or the planned apartment towers in Williamsburg by the development company led by Eliot Spitzer. http://ny.curbed.com/archives/2015/06/16/eliot_spitzers_huge_williamsburg_waterfront_project_revealed.php
Here is an overall update on Hudson Yards development & Crains NY has a neat wrap up of the project with lots of stats: http://ny.curbed.com/places/hudson-yards
With demand high for housing, condo prices rising every day and the rush from developers to obtain permits before the 421A law changes or expires, developers are constructing a record number of units-
“The Department of Buildings agreed to the construction of 52,618 residential units over the last fiscal year, a massive 156% increase from the previous fiscal year and a 749% increase from the post-recession low of 2010, according to an analysis of U.S. Census data by the New York Building Congress.” According to an article by Katherine Clark in the Daily News. http://www.nydailynews.com/life-style/real-estate/new-york-city-giant-construction-site-article-1.2312972?utm_content=buffer0bbaf&utm_medium=social&utm_source=twitter.com&utm_campaign=Kclarke+Twitter
And a building boom is coming to Brooklyn that will dramatically change the skyline.
Over 22,000 apartments are coming to areas mostly in downtown Brooklyn and Williamsburg.
The increased inventory could lead to a higher vacancy rate and more homes for buyers. While we need denser and taller buildings to create needed housing, we must also consider the character of our neighborhoods.
Do we want to look like Hong Kong?