History and price forecasts for real estate in New York City

Real estate- This is a matter that is impossible to predict. However, by looking at the history of housing sales in New York, one can anticipate how the market will behave. Over the entire period from 1974 to 2006, housing prices in the metropolis increased by 250%, which indicates significant changes in trends over different periods of time.

Price change

The researchers identified two periods of rapid home price appreciation in New York City: from 1980 to 1989 and 1996 through 2006; and two periods of decline: 1974 through 1980 and 1989 through 1996. Manhattan stood out for its price spikes, e.g., from 1980 to 1989, prices in the borough rose 155 percent, and in 18 neighborhoods, prices of housing prices even rose more than 200%. However, in 1989, a recession hit and prices fell 29.3%.

Market dynamics

In 1996, a new period of a decade-long boom began, which led to rising prices. Since 2013, real estate prices in New York have started to rise again. For example, in 2013, prices increased by 10.4%. The average price per square meter in New York was $5,347.7, while the average transaction price was $519,813.

Key factors

One of the key factors contributing to rising real estate prices is the chronic shortage of supply in the market.

Districts and areas

New York is divided into five boroughs: the Bronx, Queens, Staten Island, Brooklyn, and Manhattan. The Bronx is located north of Manhattan and Queens, and south of Westchester County.

Bronx

The 2010 census showed that 1.3 million people live in the Bronx, but in reality, the population has long surpassed 1.4 million. This southern area of New York is the third most populous in the United States. Interestingly, a quarter of the Bronx's territory is uninhabited. This includes well-known places such as Woodlawn Cemetery, Van Cortlandt Park, Pelham Bay, the New York Botanical Garden, and the Bronx Zoo. Despite this, urban development is in full swing here, especially in the north and east of Manhattan. The western and southern areas of the region remain almost empty on purpose.

Real estate prices in the Bronx

The median home value in the Bronx reached a high of $370,000 in the third quarter of 2014, an increase of 14% higher than the previous summer and 5.7% higher than last year. Over the past 5 years, prices for real estate have increased by 17.5%. The most sought after neighborhoods in the Bronx are Riverdale, Throgs Shea, Edgewater Park, Wakesfield, Jerome's Park, Parkchester and North Riverdale.

Seyten Island

Staten Island, the southernmost borough of New York City, has a population of about 470,000 residents. The Russian community in this area has significantly increased recently, especially in the neighborhoods of Rossville, South Beach, and Great Kills. The average sales price in the third quarter of 2014 was $384,500, up 9.9% from the previous quarter and 1.2% from the previous year. Housing prices have risen by 4.1% over the last 5 years.

Real estate in Manhattan and Brooklyn

Recently, the real estate market in New York has shown a slowdown in its development. Despite this, in recent years, there has been a rapid increase in demand for housing in Brooklyn, making this area the most sought after after Manhattan. This success and rise in prices are largely connected to Manhattan, which has a significant influence on the real estate market in Brooklyn.

The real estate market in Brooklyn

Brooklyn has witnessed impressive growth in real estate prices over the past few quarters, with an increase of about five times over six quarters. This makes Brooklyn the most successful neighborhood in New York after the last crisis. Average real estate prices have risen by 4% compared to 2013, and the average sale price in the area is $676,000.

Manhattan

Manhattan, which is the historic center of New York City, attracts attention with its majestic views and famous skyscrapers. views and famous skyscrapers. This borough has about 1.6 million residents and includes an island in the Upper New York Bay. The average sale price in Manhattan is $225,000, and the neighborhood also has several unique parts: downtown, midtown, the Upper East Side, and the Upper West Side, each of which each with its own characteristics and history.

Real estate in New York: market trends

According to the latest data for the current year, the real estate market in New York continues its rapid growth. As of the second quarter of 2014, the average sale price of real estate in downtown exceeded $1 million. The situation in this part of the city is particularly dynamic: 60% of properties were sold for amounts above $1.3 million. This indicates that downtown is becoming the fastest-growing real estate market in New York.

Growth factors

The main factor contributing to this growth is the tax incentives that were introduced after the tragedy of September 11, 2001, which stimulate the activity of entrepreneurs and developers.

Midtown: iconic buildings and the skyscraper center

Midtown, with its iconic buildings, skyscraper center, museums, and shopping centers, remains a sought-after neighborhood. The average property sale price in this part of Manhattan was $770,000.

Luxury neighborhoods

The elite neighborhoods also include the Upper and Lower East Side, as well as the Upper and Lower West Side. In these areas, the price per square meter of an apartment is estimated to be between $12,000 and $24,000, which is very high even for New York. In the lower part of the island, prices are even higher, ranging from $17,000 to $27,000 per square meter.

Upper and Lower Manhattan

Upper and Lower Manhattan remain neighborhoods of large and expensive apartments that still attracting wealthy buyers.

Increase in rental prices

It is also worth noting that the average rent in Manhattan has increased by 3.3% and now stands at $3300. Overall, the real estate market in New York continues to show stable and dynamic growth.