Recently, I was fortunate enough to have a FULL week of showings for my listing on the Upper East Side… like back to back to back – it was awesome! Because of these showings, I was able to meet several different New Yorkers, many of which had various opinions on the NYC real estate market. It was eye opening, insightful, and interesting to say the least. So this week I decided to sit down and really take a look at the data driven facts.
So as we do, let’s talk Real Estate, let’s talk the NYC MARKET 1H19…
Let’s take a look at the facts.
The average monthly rent in NYC is currently ~$3,000/ month. That is $36,000/year which is roughly 75% of the average salary in the U.S.
The only city in the U.S. with higher housing costs is San Fransisco
The majority of NYC residents pay rent vs owning their own home.
The average number of people living in homeless shelters in NYC, as of January 2019, was 64,000+. That number is expected to increase over the next 3 years.
On average, Manhattan homes sit on the market for 4 months. With an increase in inventory over the past year, the average number of days on market may rise.
The “cheapest” rents in Manhattan currently sit at the northern most tip of the island, and even those are averaging ~$1,600/month in rent.
Co-ops seems to be the most popular purchases. Even with the strict rules some Co-op boards enforce, they often provide the most bang for your buck and value add.
NYC is rapidly losing low rent apartments due to rent law loopholes, resulting in an increase of “rent burdened” New Yorkers. Rent burdened is defined as spending more than 30% of the household income on rent.
The rental market has been less effected than the buying/selling market however on average rental rates are lower than they were 3 years ago, and units are taking longer to fill. Now I want to caveat this by saying that the rental market in NYC, despite all of this is still strong, and rental rates are still quite high. If the unit is priced properly, units are still filling within days, if not hours!
Investors are no longer racing to invest in what is known as “Billionaire’s Row”(situated along the southern border of Central Park). The better investments are now said to be in “walkable” and “approachable” neighborhoods such as Noho, the West Village and Chelsea.
Alex Rodriguez and Barbara Corcoran are currently on a mission to acquire off market rental properties in undervalued neighborhoods all over the Greater NYC area. Now I know this is not a “market fact” but I love AROD, JLO and Barbara Corcoran and frankly, how shark tank of them to take advantage of this buyers market?! They are rumored to be purchasing in Inwood (Harlem), Red Hook (Brooklyn), Greenpoint (Brooklyn), and Mott Haven (South Bronx). I cannot wait to see where they end up buying!
And after making ALL of these points and essentially stating how the NYC market is currently “depressed”, you should know that just this week a townhome sold for $80MM… YEP – that is the most most expensive residential sale in the city, ever!!
SO YOU TRULY NEVER KNOW WHAT YOU MIGHT SEE HERE IN THE BIG APPLE! I AM CURIOUS AS TO WHAT OTHER REALTORS, INVESTORS AND RE PROFESSIONALS ARE SEEING HERE IN NYC?!!
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Me – this is based on my own personal experience!