It sometimes seems like real estate trends in New York City are in a perpetual bull market. Prices keep rising and people keep buying. Hot neighborhoods keep getting hotter, and investments continue to pour in. It’s just impossible to catch up. Here, we try to make sense of some of the biggest trends right now in New York City real estate.
Manhattan Apartments Reach Record Levels—Again
Apartments and co-ops in Manhattan have reached another all-time high in 2017 after reaching record levels in 2016 and in 2015. The total number of sales of Manhattan apartments rose 15 percent from last year. The average price of an apartment or co-op in Manhattan rose to $2.19 million. Demand from buyers appears to be the driving force behind these mid-level sales if you can call $2.19 million “mid-level.” Interest in new construction condominiums is also a big factor with units selling quickly as eager buyers snatch them up.
Median sales of luxury apartments in Manhattan, however, is down across the board, with prices dipping 4.8 percent to just shy of $6.5 million. Bidding wars and all-cash offers seem to be off the table for ultra-luxury apartments. This is leading to sluggish sales at the higher end of the pricing scale as buyers feel less pressure to make a quick purchase.
Brooklyn is Booming
Brooklyn has seen, by far, some of the biggest population increases in all of New York in recent years. This growth has led to a building boom, with buyers grabbing properties almost as fast as they can be built. The average sales price for a home in Brooklyn is now nearly $1 million. Luxury real estate developments are driving the price higher and low inventory is keeping the market hot. Tourism, universities, and an undeniable “cool” factor have kept people flocking to Brooklyn. With underutilized properties just waiting to be converted, it seems like this trend will continue for quite some time.
The Bronx Sees Record Investment
When you think of real estate trends, you don’t often think of the Bronx. While Manhattan and Brooklyn hold the crown in price spikes, the Bronx is quickly being developed, with more affordable housing in mind. The borough has seen $3.3 billion in real estate development in the last year alone. That’s a 37 percent increase over last year, with a lot of exciting new developments in the works. Residential and mixed-use spaces are growing as demand grows for affordable housing in the city.
While pricing in New York City continues to fluctuate, it seems to be on a decidedly uphill trend. While ultra-luxury homes have taken a hit in Manhattan, the median price continues to rise. Brooklyn is seeing increases across all levels. The Bronx is receiving major investments in new residential construction. New York continues to grow as builders continue to invest and buyers search for their perfect home.