Back HomeNew York City Real Estate’s 2015 Predictions Revisited
Around this time last year, DNAinfo released a set of predictions for New York City’s 2015 real estate market. Over a two year period, the city has experienced a housing boom, launching large-scale luxury condominiums and rental buildings in waves, expanding into Upper Manhattan, Long Island City, Brooklyn, and the Bronx.
We’ve taken a moment to provide some insight into what has been happening in the market. Get ready: you might be surprised.
No. 1: Price Growth Cools in Manhattan…
StreetEasy’s hallmark data scientist Alan Lightfeldt predicted a price slowdown on the island. Oh, the prices would still rise, he said, but they would do so at a “healthy” 4 percent rate.
In actual fact, resale prices rose 6.3 percent. Keep in mind, however, that the rate of price rise over the past 18 consecutive months has been moving on a downward slope. Prices aren’t rising as fast as they have been two or three years prior. Watson International has its own explanations as to why this is, including new development supply across the five boroughs, satiated international demand, and limited American income growth.
No. 2: …But Brooklyn (plus Queens) is Immune
Noted in DNA’s list, Lightfeldt predicted that prices would continue their uninterrupted march upward, and with that, their combined year over year growth rate. Into Q3 2015, he used the Brooklyn Price Index to discover that Brooklyn’s market has slowed down to less than half of what it was at 2014’s half-point (July)— 5.3 percent.
This news has grey in it: the Corcoran Group’s own Q3 Brooklyn market report congratulated the quarter’s listings for breaking price barriers. The average price topped $1M for the first time since 2008. Median price per square foot took a giant step forward, increasing 31 percent/surpassing $1,000 dollars since last year.
No. 3 Amenities Get ‘Cool’
As of late, this has been a theme in our In the Neighborhood blog series whereby we detail the latest developments in the five boroughs. Developers are increasingly adding “Wow-factor” amenities to win over buyers with many options, whether in Manhattan or Brooklyn.
New development buildings tend to be luxurious, on and off the island. And since, to New Yorkers, luxury tends to be synonymous with exclusivity, developers have been hard at work creating private concrete avenues and elevators that will accommodate their VIP buyers. Boutique buildings with a handful of floors and residences are especially noted for their privacy features.
Outdoor garden terraces and fire pits, shown in renderings for buildings like 303 East 44th Street and 505 HighLine, are increasingly becoming standard fare among new development.
Brooklyn’s Prospect Heights is experiencing its own amenity glory with a series of Pacific Park buildings. Among them, 550 Vanderbilt will feature dedicated amenity space in excess of 10,000 sq ft. Currently in soft sale phase, the luxury residential building will offer its residents a ground-floor library, living room lounge, private entertaining rooms, and alfresco seating, according to its Curbed feature.
Written by Alexandra Gámez Carlyle New York
