New York City's housing market is always changing. The hot new affordable borough or neighborhood often becomes out of reach financially for many New Yorkers, so they move on to another up-and-coming area.
Of course, even small Manhattan apartments have been unaffordable for many people for decades. The average sale price for a Manhattan apartment is now over $2 million, according to City Realty. That's more than 90 percent higher than a decade ago.
It's important for New Yorkers to be aware of the predicted trends for this new year if they're considering renting or buying. However, it's also essential for developers, property owners and landlords to listen to the experts. Following are a few predictions for 2017.
As Queens' Long Island City becomes pricier, other areas of Queens may also see an uptick in new residents seeking lower prices than in Long Island City. The head of one real estate group predicts "more modern, architecturally-driven product there," adding, "Queens is where it's happening." Astoria, once known for being the home of the fictional Bunker family on All in the Family, is becoming particularly popular.
As for Brooklyn, many real estate brokers predict that with the scheduled shutdown of the L train in 2019, which takes commuters between that borough and Manhattan, South Williamsburg will become more popular.
In Manhattan, the Second Avenue subway is expected to boost the popularity of the Upper East Side. One real estate professional predicts, "Rental demand east of Third Avenue will change overnight."
One real estate agent predicts that "you will hear more about Staten Island in the years to come." It's a relatively quick ferry ride to Wall Street. However, she notes, "The trick is giving the ferry more cachet like ferries have in Sydney, Istanbul and Chicago."
There are other factors that influence the housing market, such as the recent rise in interest rates. Further, with Midtown's Trump Tower now encased with Secret Service agents and law enforcement officers, the inconvenience and disruption may become untenable for residents and businesses.
As developers make decisions about their next projects, it's essential not just to have as much information about the ever-changing nature of the city, including residential patterns. Experienced legal advice is necessary to help ensure that you are in compliance with all city and state zoning laws and other regulations and to help your project proceed as smoothly as possible.
Source: DNA Info, "17 Predictions for NYC's Residential Real Estate in 2017," Amy Zimmer, Dec. 20, 2016