NYC Real Estate 2015
Commenting on NY YIMBY blog post:
In case you missed it, the NY YIMBY blog recently posted their 2015 real estate predictions.
Where is the real estate market headed this year?
As expected, the housing supply will continue to be tight and the demand high.
The article focuses on the continued lack of inventory in popular NYC neighborhoods.
The luxury condo and coop market could soften with less “very” high-end luxury homes in demand but still a stable market for expensive, luxury developments.
Prices could flatten some but 2015 will also probably still be a good year for sellers of luxury condos and coops.
There will continue to be a housing crisis for affordable housing for low and middle-income individuals and families.
The Mayor’s affordable housing plan will face difficulties in squeezing enough affordable housing from developers. There will be continued gentrification in neighborhoods since strict zoning laws and high construction costs will lead to more condos conversions. In many areas such as western Brooklyn, Bed Stuy., Bushwick and Crown Heights, Upper Manhattan, and Western Queens, condo builders will continue to be rewarded. Brooklyn is the new Manhattan, with condos with lots of sweet amenities continuing to sell at once considered “Manhattan” high prices.
I found interesting that the article claimed that Mayor de Blasio’s affordable housing plan may not create or retain that many more affordable units than Mayor Bloomberg’s did. East New York will be one of the main areas for new affordable housing and apartment complexes.
Commercial real estate
Regarding commercial construction, two major developments: the WTC and Hudson Yards will have a tough time finding enough paying tenants to fill their properties. And there is the rat problem at WTC. I am sure us New Yorkers will solve that problem.
Hudson Yards, where I live with my family, is undergoing a major multibillion dollar development, which will include office skyscrapers, a culture shed, high-end condos, affordable housing,a park that will meet the Highline and the extended 7-train.
Right now, both developments have yet to fill their huge office spaces. But the Hudson Yards construction is years from completion.
Neighborhoods will continue to change
Gentrification, as YIMBY mentions will continue. But we will not see Hipsters moving to the Bronx en masse. There will be more new luxury homes in Crown Heights, Williamsburg, Long Island City and other areas. It will be even more challenging for developers to erect rental buildings.
As YIMBY puts it, the urban renaissance-New York City being a place where millions wants to live, visit and invest has benefited from a low crime rate, economic growth and a great real estate investment market. Build it and they will come and live and invest…
Photo Credit and more information on Brooklyn Bridge Parks Pierhouse from Curbed article: