If you’re looking to buy a home in New York City, you’re in luck! NYC real estate is one of the most dynamic markets, ever-evolving and full of investors, high-end properties, and top trends in the housing industry. Here’s a look at the current top trends for NYC real estate and what you can expect in 2021:
Diversity of Buyers and Properties
From first-time homebuyers and foreign buyers to experienced investors, NYC real estate is drawing from a wide range of buyers. There’s something for everyone’s varying needs, budget, and tastes — from classic townhomes to sleek, modern condos.
New York City’s renowned neighborhoods are desirable and they come with a range of prices. Brooklyn, Queens, and Manhattan feature chic properties along every shore and picturesque town homes in quaint residential areas like Astoria and Bed-Stuy.
Increasing Prices
The median sale price for NYC homes is up 10% from 2020, and rental prices are up 2.21%. According to 2020 reports from the Real Estate Board of New York, the average sales price for a single-family townhome was around $2.37 million and the average sales price for a condo was around $1.51 million.
High Construction
The construction of new high-end projects — some with 12-months of broker incentives for move-ins — is creating neighborhoods that attract high-end buyers. Projects such as Hudson Yards and the Manhattan skyline will be home to chic, sophisticated high-rises. With all the construction going on and buyers longing for larger units and more modern amenities, these new developments should be worth the wait.
Luxury Buyers
As a top trend in NYC real estate, luxury buyers are dominating the market. NYC is home to some of the most luxurious markets in the world, with over 63% of luxury properties being purchased by foreign buyers. Sales of luxury homes could easily exceed pre- pandemic levels of activity.
Luxury buildings such as The American Copper Buildings in Kips Bay and The Getty in Chelsea are some of the most sought-after high-end homes in the city. Foreign buyers are especially attracted to luxury real estate in New York due to its high profile and the fact that their money will take them further in NYC than other places around the world.
Renters Looking for More
Renters are increasingly turning to homeownership as the most cost-effective way to live in the city. The rise in rent prices combined with the increasing availability of condos has driven more people to buy rather than rent in NYC.
One of the main benefits of owning a condo is the tax deductions associated with mortgage interest and maintenance fees. With lower property taxes in the city, condos become more attractive and make more financial sense compared to renting.
Also, more people are looking for someplace to call their own. Condos offer a permanent solution to their housing needs and provide more stability than a rental property.
Mortgage and Finance Assistance
A favorable financing climate is making it easier for people to get into the real estate market in NYC. Mortgage rates remain low and more banks are offering financing packages that offer more incentives such as waived fees or reduced interest rates.
Also, the recently passed COVID-19 relief package allowed new buyers to take advantage of up to $10,000 in tax credits for their downpayment on their new home, which can help reduce the overall cost.
The city has a variety of downpayment assistance programs that can help those who lack the resources, from those offered by New York City’s Department of Housing Preservation and Development (HPD) to the Low Income Housing Tax Credit Program (LIHTC).
Local and Boutique Buyers
If you’re looking for a more local experience and a one-of-a-kind opportunity to own a property, many boutique brokerages offer exclusive listings and marketing in their specialties. Brooklyn Heights, Brooklyn’s oldest neighborhood, is an excellent example of this trend.
These local brokerages specialize in finding buyers the perfect property near their work, school, family, and other interests. Boutique brokers also focus more on giving their buyers the exact property that suits their needs as opposed to simply brokering generic listings.
Increased Investment Opportunities
As one of the most dynamic and desirable real estate markets in the world, NYC offers a wide range of investment opportunities. From buyers looking to purchase a single-family home as a primary residence to more experienced investors who recognize the potential for appreciation and long-term value, there is no shortage of potential investments.
New York City is home to a growing tech sector, renowned universities, and an eclectic cuisine scene, creating an ideal environment for budding entrepreneurs and real estate investors to take advantage of the many opportunities for growth in the city.
As the real estate market in NYC continues to evolve, investors can take advantage of prime locations for rental properties or make an educated long-term purchase for future value appreciation.
New York City real estate is a dynamic market that offers opportunities for everyone from experienced investors to first-time buyers. It’s the ideal city for investment opportunities, and high-end buyers can take advantage of unique buildings with unparalleled luxury designs.
All buyers can benefit from current incentives such as low mortgage rates, tax credits, and assistance programs to make homeownership more accessible. As the market continues to see an increased interest from foreign investors, luxury buyers, and local buyers, 2021 looks to be another great year for NYC real estate.
