The city that never sleeps has become an even bigger draw for jobs and talent than ever before (if that’s even possible). Especially with Netflix and Spotify opening up new offices in Manhattan drawing even more people to the big apple. Even Amazon is considering a new headquarters location, will it be New York? Growing supply of high paying jobs is bringing in residents attracted to the higher income opportunities and giving them the potential to outbit NYC’s existing residents. If you are watching the market carefully, there are new exciting plot twists helping shape the real estate forecast for 2018.
Lack of Affordable Homes
Results published by NYSAR show the US housing data for New York and affordable homes have dropped 1%, sales are down 2.5%, and average prices are up 7% from the previous year. There is no lack of conjecture about a possible US housing crash that would take NYC down with it. Many people find high foreclosure rates in the Queens, the Bronx, and Staten Island to be unsettling.
Evidence of a crash is debatable. New Yorkers, however, will face growing competition for affordable homes. Income averages about $60,000 a year in NYC, making it challenging for many to buy homes averaging $680,000.
Highlight on declining luxury homes
Out of all of the housing markets in NYC, the high-end Manhattan market is falling the fastest. There is currently a 17-month supply of luxury apartments in Manhattan. This is up 10 months just a year ago and total sales volume fell 12% compared with the fourth quarter of last year. This is the lowest level in six years. Rent in Manhattan dropped 1.0% in November and luxury home sales across the city will hit new lows so it says in the 2018 real estate forecast for NYC.
Public transit changes driving new demand
The backbone of public transportation is obviously the subway. However, the NYC Ferry service expanded and set its capacity even hire to reach Manhattan’s eastern shore and into the Bronx. The L train is still shut down and expected to reopen in 2019 which will have a huge impact on people’s real estate choices.