If you are thinking about moving to New York City (NYC), you are not alone. But affordable housing can be difficult to find. Here is a breakdown of recent real estate trends by borough in the metropolitan area.
International capital has impacted the Manhattan housing market. There are interesting expectations about the market’s performance based on the demand for trophy properties. The sale of two penthouses at One57 for over $90 million, and a $45 million condominium at the Time Warner Center have helped to skew housing sales dollars upward. According to reports, the median sales price for a Manhattan apartment is approximately $700,000.
This is not great news for renters. Rents have been increasing in Manhattan year after year. Median rents rose 1.8 percent to $3,150 for August 2013. The good news is that the rent jumps are getting smaller. But they also aren’t expected to level out for another year. The reasons for this are the strict credit requirements, low inventory, and escalating mortgage rates that are keeping aspiring buyers in the rental markets.
There is high pressure in the Brooklyn housing market because of the limited levels of inventory. This year’s spring market exhibited the lowest inventory in seven years. Inventory that came available on the market sold briskly at listed prices. The pressure is anticipated to stay on the Brooklyn housing market, as resale inventory is not expected to increase.
Rental hikes are on the increase for Brooklyn as well, as more people are choosing the relatively affordable rents in Brooklyn over the higher rates in Manhattan. Reports anticipate this borough’s rents will continue to increase.
The average square footage rate in Staten Island is $254—this number is up 2.4 percent from last year. Additionally, the median price of property in Staten Island is up 4.8 percent from last year. The median home price in Staten Island is $400,000. Popular neighborhoods on the island include Great Kills and Tottenville.
Sales have continued to rise in Queens even though this borough had its lowest inventory in five years. Many Manhattan and Brooklyn buyers are choosing to buy in Queens, resulting in upward price trends. However, the average rates in Queens are still below those found in these boroughs.
There are still affordable housing options in the Bronx and many people are choosing to live in cost-effective, roomy, family-sized apartments that they can’t afford elsewhere. The Bronx may see its sales continue to rise as New Yorkers seek affordable housing.
Be Optimistic, but Stay Realistic
As prices continue to rise, the real estate news out of New York City is problematic for renters but favorable for sellers, landlords, and buyers:
- If you’re looking to rent in Manhattan or Brooklyn, be prepared to potentially pay significantly more next year than you will this year.
- If you buy real estate in the outer lying boroughs, you will likely get a better deal, more space, and a steady increase in property value.
- If you opt to buy in Manhattan or some parts of Brooklyn, you’ll have to pay top dollar but you’ll have an investment backed by the reassurance of a nearly saturated housing market with low inventory—this should at least keep property value stable and may potentially cause it to increase.
- If you’re selling, you stand to make a healthy profit and should only weigh your choice against holding out for more.