In Sunday’s New York Times, there was an article titled “What’s next?” which talked about the trends in the NYC real estate market.
- I agree with several of the points including that in 2015:
- AirBnB will continue to be a force in the NYC area as people rent out their rooms
- Rent stabilization will be an issue heavily discussed as those laws are set to expire.
- More luxury housing will be built
- Emerging neighborhoods like the Bronx will see an influx of new residents
From being in the field, my additional observations are that:
- The glut of luxury properties will not be absorbed by the market and developers will be forced to build smaller units or sit wth inventory of $10 million apartments on the market
- Harlem will continue to appreciate in value as more purchasers decide to buy and any new construction will be scooped up. See One Morningside Park as an example.LINK to NYT Article
- Rents will continue to rise as home ownership continues to be out of reach for many 20 somethings
- Next year’s market will continue to have bidding wars for well priced property but days on the market will continue as buyers are already becoming more discerning with purchases over $3 million.
- Inventory is still very low for properties under $2 million in all areas of Manhattan. Developers should target this sweet spot of the market where there is a pent up demand.