“What’s up next for NYC real estate in 2015?”
Commenting on NYT article: What’s Up Next in New York?
Airbnb and Rent Regulation Will Be Hot Topics
NYC is still a great investment
Let’s face it. New York City has benefited from its own success. Everyone, well, millions of people want to live here. The wealthy and those who invested and saved wisely, those with cash, want to invest in real estate here. Our city has a lot to offer. Crime is down more than ever. Every neighborhood offers unique cultural centers, restaurants, nightlife, more out door space than ever and distinct characteristics. New York City is a wise investment.
Buying a home in NYC is expensive. Purchasing property in the greatest city in the world is worth the investment if you can afford it. “The average price for condos and coops in Manhattan topped at $1.68 million in 2014 for the first time, according to the WSJ.
New neighborhoods will experience more luxury developments
Outside of Manhattan, new “hot” neighborhoods are seeing construction of new condos and high-rise rental apartments. Williamsburg was once the bohemian “hipster” land of affordable apartments. Developers are building high-rise rental towers with condo like amenities.
Bedford-Stuyvesant, Bushwick and Clinton Hill in Brooklyn and Long Island City, Queens and many other areas are now seeing new economic growth, new stores, higher rents and luxury towers go up.
Inventory of homes in NYC are low due to high demand and many other factors. It is a seller’s market.
More government intervention
Besides rising prices and new luxury condo and apartment rental towers, government regulation and intervention will increase. The Mayor’s affordable housing proposal will have more details and there will be a push for more developers to include new affordable units. On Airbnb, recently a woman profiting from her Airbnb rental, was ordered by a judge to take her apartment off Airbnb immediately. http://therealdeal.com/blog/2014/12/27/judge-shuts-down-womans-lucrative-cpw-airbnb/
But is Airbnb here to stay and shouldn’t it be allowed to operate in the new sharing economy? Will there be new regulations to ensure laws aren’t being broken or will laws be updated?
Rent control legislation will be looked at in Albany. There will be high concern from tenants with the conventional wisdom that a Republican-led State Senate could take on deregulating more rent subsidized apartments.
Everything will continue to rise
So 2015 arrives, with everything as the New York Times article mentions going up, condo and coop prices, more apartment high rises and more government intervention. The question that many cannot answer now is how much higher will luxury condos and coops sell for? Will rental prices stabilize since most workers and middle class families cannot afford these high rents. (As the article mentions they probably won’t go up much more but they won’t go down).
“Build it and they will come..” to live or at least to invest and rent out…..stay tuned…
Photo Credit Emily Andrews for The New York Times
A new rental building, 1N4th is rising north of the Williamsburg Bridge in Brooklyn. Apartments are also in store for the grounds of the Domino Sugar Factory.