This page has been updated to reflect the latest trends in the NYC real estate market as well as the statewide market. Among metropolitan areas, the New York City metro remains the country’s largest real estate market by value, but by a narrowing margin. The NYC-area housing market is valued at $3.51 trillion, with the Los Angeles metro right behind at $3.27 trillion, according to a report published by Zillow.
New York state's real estate market showed no signs of slowing in March 2022. The buyer demand reached remained strong, owing to pandemic-induced changes in housing needs and preferences. The inventory of available homes remained low, owing to the fact that home seller activity did not increase proportionately to meet this demand, according to the New York State Association of REALTORS®. The median price in the New York housing market has reached $410,000, which is a gain of 13.2 percent from last March.
While new construction activity has remained robust, it has been constrained by a combination of material and labor shortages, rising material costs, and a regulatory and operational environment that makes scaling difficult. The strong seller's market that existed in 2020 persisted and even strengthened in 2021, with inventory levels remaining low and multiple offer situations prevalent across a large portion of the housing market, both locally and nationally. Multiple offers increased prices significantly for the year once again.
New York has also been one of the hardest hit by the COVID-19 pandemic, with the highest job losses among the country's major metropolitan areas. It has been recovering from the economic effects of the pandemic. Inventory shortages and strong buyer demand continued to drive up home prices, with multiple offers on a limited number of homes being a common occurrence in the majority of market segments.
2022 is expected to continue the upward trend seen over the last 18 months, pushing home prices even higher. Given the likelihood that mortgage rates will continue to rise throughout the year, housing affordability will remain a critical factor to monitor. In New York City, home prices remain low in comparison to where they were just before the pandemic hit the city. Buyers can still get a good deal now that prices have risen to mid-2019 levels.
Although rents of apartments have been falling in New York City due to high vacancies we can a significant slow down in those trends. New lease contracts are increasing month after month, and rental prices are recovering as demand rises. The strong buyer demand has also changed the dynamics of the residential sales market, which had been cooling for nearly three years.
NYC is now seeing rising demand and attractive pricing as people want to go back there. According to the latest statistics obtained by Douglas Elliman, for the month of December, Manhattan's net effective median rent reached its highest level, while new lease signings fell at their fastest annual rate. For the fifth consecutive month, listing inventory fell at a record pace and is now below pre-pandemic levels—the largest annual decline in new lease signings for the month of December on record.
Despite the year-end acceleration of the latest COVID variant, the Manhattan market rushed to catch up with the surrounding region and then some. Sales increased to their highest fourth-quarter total in thirty-two years. Listing inventory fell at the fastest annual rate in seven years, with bidding wars capturing the largest market share since early 2018. Luxury median sales prices equaled the prior-year quarter but were significantly above the same period two years ago.
Similarly, Brooklyn's price trends continued their record-breaking streak as sales soared. For the sixth consecutive quarter, the median sales price set a new record. Year over year growth in sales above the $1 million threshold was three times that of sales below that threshold. One in every five-borough sales concluded at a price higher than the initial asking price.
Revision of Key Statistics of New York Real Estate Market in the previous year (NYSAR)
- New York home prices were up compared to last year.
- The overall median sales price increased 19.4 percent to $370,000 for the year.
- Pending sales increased 10.8 percent, finishing 2021 at 157,022.
- Closed sales were up 17.2 percent to end the year at 153,110.
- Sellers received, on average, 100.7 percent of their original list price at sale, a year-overyear improvement of 2.3 percent.
- Comparing 2021 to the prior year, the number of homes available for sale was lower by 30.4 percent.
- There were 30,654 active listings at the end of 2021.
- New listings decreased by 0.2 percent to finish the year at 192,214.
New York Real Estate Market Trends 2022 (Statewide – Latest)

As the housing supply remains limited, home prices continue to rise in New York. According to the housing report released by the New York State Association of REALTORS®, the median sales price in the Empire State rose once again in March, while the number of homes available for sale has reached critically low levels.
In March 2022, the median sales price increased to $410,000, up from $362,315 in March 2021. This represents an increase of 13.2 percent. Using year-over-year comparisons, the median sales price has risen for the past 23 months in a row. Inventory of homes for sale in New York State decreased by 22.6 percent last month, from 39,707 homes in March 2021 to 30,721 units last month.
The months' supply of inventory decreased by 25 percent between March 2021 and March 2022, from 3.2 months to 2.4 months. A six- to six-and-a-half-month supply is considered a balanced market. The number of new listings decreased by 4.7%, from 17,783 in 2021 to 16,952 in 2022. Additionally, closed sales decreased from 11,412 in March 2021 to 10,350 last month.
However, pending sales increased marginally by 3.1% in March, from 13,507 homes in 2021 to 13,910 units in 2022. The housing affordability index decreased by – 9.2% to 119 as compared to Feb of last year when it was 131. An index of 120 means the median household income is 120% of what is necessary to qualify for the median-priced home under prevailing interest rates. A higher number means greater affordability.

Trends in the New York Housing Market in the First Quarter of 2022
The New York resale housing market (statewide data) continued to expand at a breakneck pace in Q1 2022, with record-high sales prices, low inventory, multiple offers, and strong buyer demand, according to NYSAR data.
- Pending Sales in New York State were up 0.3 percent to 33,170.
- They are considered is a forward-looking indicator of home sales based on contract signings
- Closed Sales decreased 7.1 percent to 30,771.
- Inventory shrunk 22.6 percent to 30,724 units.
- Prices gazed upward as the Median Sales Price was up 12.7 percent to $400,000.
- The average sales price was up 17.4 percent to $525,423.
- Sellers received, on average, 100.2 percent of their original list price at sale, a year-over-year improvement of 1.4 percent.
- Days on Market decreased 8.8 percent to 62 days.
- Months Supply of Inventory was down 25 percent to 2.4 months.
- Housing Affordability Index dropped by 11.7% to 121.
- A higher number means greater affordability.
New York's Recovery From The Pandemic
The full recovery of the NYC real estate market and the economy as a whole depends on the potential future shutdowns in NYC, as well as the speed and efficiency of vaccine distribution which can help the businesses to reopen with full capacity with no restrictions at all. According to preliminary figures released on April 19, 2022, by the New York State Department of Labor, New York State’s seasonally adjusted unemployment rate decreased from 4.9% in February to 4.6% in March 2022.
New York State's private sector jobs (not seasonally adjusted) increased by 433,400, or 5.9%, over the year in March 2022 (based on a payroll survey of 18,000 New York businesses conducted by the U.S. Department of Labor’s Bureau of Labor Statistics). By comparison, the number of private sector jobs in the U.S. increased by 5.2% over the year.
On a net basis, the total number of nonfarm jobs in the state increased by 28,100 over the month, while private sector jobs rose by 27,500, in March 2022. At the same time, the total number of nonfarm jobs in the nation increased by 431,000, while private-sector jobs increased by 426,000.
- New York City’s unemployment rate decreased over the month from 6.9% to 6.5%.
- Outside of New York City, the unemployment rate decreased from 3.4% to 3.2%.
- The number of unemployed New Yorkers decreased over the month by 27,700, from 459,000 in February to 431,300 in March 2022.

New York City's Real Estate Market Overview (Latest Resale Trends)
Let us now look at the most recent trends in the New York City real estate market. The pandemic has hit New York City hard. As a result of the pandemic's aftermath, people have moved to the suburbs, driving up home prices in those areas. Those who stay in the city, on the other hand, are often able to find a better home for less. The NYC real estate market is currently a buyer's market which means there are roughly more active homes for sale than there are buyers. The supply for housing is outpacing the demand favoring home buyers who are managing to hold good leverage in price negotiations.
Realtor.com's latest data also shows that NYC is a buyer's real estate market as it has a total sales to total listings ratio below 0.12 which tends to favor buyers. In other words, the supply of homes is greater than the demand for homes.
- In February 2022, the median list price of homes in New York, NY was $878K, trending up 3.3% year-over-year.
- The median listing price per square foot was $936.
- The median sale price was $859,000.
- The sale-to-List Price Ratio was 100% — homes sold for approximately the asking price on average.
- A buyer would prefer a sale to list price ratio closer to 90%, whereas a seller would always prefer scenarios that yield a ratio of 100% or higher.
- The median days on market (167) in New York City have increased somewhat over the past month but decreased slightly over the last year.
- Tribeca is the most expensive neighborhood, with a median listing price of $3.7M.
- Riverdale has a median listing price of $355,000, making it the least expensive neighborhood in New York.
Data by Redfin shows that the median sales price of homes (all types) in New York was $865K last month, up 13.1% since last year.
- On average, homes in New York City sell after 70 days on the market compared to 105 days last year.
- There were 3,896 homes sold in April this year, up from 3,400 last year.
- The median days on the market are 70, down 35% from last year.
- The median sales price of homes in Manhattan was $1.4M last month, up 12.5% since last year.
- The median sales price of homes in Queens was $650K last month, down 2.3% since last year.
Impact of COVID-19 on The NYC Real Estate Market (New York City)
Migration Trends: People are leaving big, densely populated areas like New York City and spreading out to suburbs or smaller communities with lower infection rates and/or to save money. Over the past several months, there's been an influx of renters in the Hamptons coming from New York City. Hampton is roughly 100 miles from New York City and Brooklyn — the top two cities that experienced the highest amount of net losses.
New York City experienced the highest losses — more than 110,000 residents left the city from February to July of last year. That’s 487% growth (or nearly five times) when compared with the number of outgoing movers that left Manhattan in 2019. Brooklyn ranked sixth last year, but numbers quadrupled in 2020, pushing it to second place. What could be causing the large migrations during the key months of the pandemic? Let's discuss some more interesting trends.
The StreetEasy Market Reports are a monthly overview of the Manhattan, Brooklyn, and Queens sales and rental markets. It’s been two years of unpredictability in the New York City market, but their latest data shows that the seasonality of the NYC home sales market is back. Homes are being sold from the market nearly a month faster than the same time last year.
As the peak shopping season approaches, buyers will likely observe that homes are selling just as quickly, if not more quickly. The spring housing market will be competitive, but the increase in new inventory is encouraging. The recent increase in home prices should encourage even more sellers to place their properties on the market, making it easier and more likely for buyers to find their ideal home.
According to StreetEasy Market Feb 2022 report, after three months of for-sale inventory falling, their data shows there was an increase in available homes between January and February 2022. There was a total of 16,622 NYC homes for sale in February, 549 more than there were in January. Still, inventory was 12.2% lower than it was in February last year, so there remains room for inventory to fully recover.
The number of homes offering price reductions is a good indicator of buyer demand. In February, 8.1% of New York City listings for sale advertised a price reduction. This is the same percentage as February of last year, but less than the 10.2 percent in February of 2020, before the pandemic. In February, the median asking price for a home in New York City remained unchanged from one year prior, at $950,000.
In New York City, the sale-to-list price ratio is falling, indicating that sellers are reducing the difference between their original list price and their final selling price. In January, the median sale-to-list price ratio for Manhattan homes was 98.7 percent, indicating that sellers in the borough came extremely close to receiving their initial asking price.
In February, this percentage dropped to 90.9%. That means a home that was originally listed for $1,000,000 sold for $909,000. Despite the fact that fewer sellers may be advertising price reductions, this data indicates that buyers continue to negotiate and obtain lower prices prior to closing.
NYC Quarterly Home Sales Market Trends
- Manhattan asking prices rose 7.7% to $1,395,000 during the first quarter. Inventory fell 10.1% year-over-year with 12,057 homes available on the market but rose by 4% since Q4 2021. This is the first time in three quarters that there has been a quarterly increase in Manhattan sales inventory.
- Brooklyn asking prices rose 6.1% to $955,250 during the first quarter. Inventory fell 8.7% year over year with 6,668 homes for sale. Sales inventory remained relatively the same between Q4 2021 and the first quarter of this year, with 22 fewer homes available.
- Queens was the only borough analyzed to see a drop in prices and an uptick in inventory. Queens asking prices fell 3.2% to $599,000 during the first quarter, while inventory rose 2.8% year over year with 4,466 homes for sale.
An Overview of NYC Rental Market
In the latest Douglas Elliman report, the price trend indicators in Manhattan rose to record levels by record rates as listing inventory continued to collapse. Net effective median rent and all the face rent price trend indicators rose to their highest levels on record. The vacancy rate fell to its lowest level for the month of February since 2008.
Manhattan is attracting tons of renters. Listing inventory fell year over year by its fastest rate on record. Doorman’s net effective median rent surged year over year for the seventh straight month by a record rate. Non-doorman net effective median rent jumped annually at a record rate for the second straight month for the fifth consecutive month of gains. All luxury price trend indicators reached new records after more than a decade of tracking while luxury listing inventory fell to a record low for the third straight month.
- There were 2813 new leases signed, compared to 6561 a year prior — close to a 57.1% decrease.
- The average rental price in Manhattan in February 2022 was $4,906, an increase of 29.4% from February 2021 ($3791).
- The average rental price increased by 7.4% from January 2022 ($4570).
- The median rental price in Manhattan in February 2022 was $3700, an increase of 23.5% from February 2021 ($2995).
- The median rental price increased by 4.2% from January 2022 ($3,159).
- The current vacancy rate is 1.32%. A year ago it was 11.79%.
- Listing inventory (4541) is down by 81.1% from year-ago levels (23,983).
- The median rental price increased in Downtown (+29.1%), Northern Manhattan (+6.8%), and Westside (+30.9%).
- The median rental price decreased in Eastside (+30.4%).
All price trend indicators in Brooklyn rose annually but fell short of pre-pandemic levels. Net effective median reached the third-highest level for a February in a dozen years. New lease signings rose to the second-highest February since tracking began in 2008 as listing inventory fell year over year by the second-highest rate on record.
- There were 1295 new leases signed, compared to 1834 a year prior — close to a 29.4% decrease.
- The average rental price in Brooklyn in February 2022 was $3306, a rise of 5.8% from February 2021 ($3,125).
- The average rental price increased by 4.6% from January 2022 ($3162).
- The median rental price in Brooklyn in February 2022 was $2900, a rise of 10.5% from February 2021 ($2625).
- The median rental price increased by 3.6% from January 2022 ($2,800).
- Listing inventory (3004) decreased by 85% from year-ago levels (19,965)
- It increased by 8.1% from the previous month (2780).
In Northwest Queens, price trend indicators rose annually as listing inventory continued to plunge. Net effective median rent rose to its second-highest level for the month of February as the number of new leases increased to the second-highest on record. Listing inventory fell year over year by the second-highest rate on record.
- There were 524 new leases signed, compared to 386 a year prior — a rise of 35.8%.
- The average rental price in Northwest Queens in February 2022 was $3074, a rise of 14.1% from February 2021 ($2695).
- The average rental price decreased by 2.4% from January 2022 ($3151).
- The median rental price in Northwest Queens in February 2022 was $2888, a rise of 14.5% from February 2021 ($2522).
- The median rental price rose by 2.1% from January 2022 ($2950).
- Listing inventory (517) decreased by 89.3% from year-ago levels (4816) but increased 10.7% from the previous month (467).
NYC Real Estate Market Forecast 2022 (Latest Predictions)
Many industry experts have been predicting a strong property appreciation in New York in 2021. 2021 is going to be a great one for property owners as the state still faces a long recovery ahead. With the relaxation of COVID-19 policies, different economic sectors have opened up in different ways and at varying paces. According to existing trends, the New York housing market will be extremely active throughout the peak home-buying season.
What are the New York City real estate market predictions for 2022? New York City has a track record of being one of the best long-term real estate investments in the U.S. The New York real estate market has been booming year over year. NYC home prices nearly doubled in the 2010s. With supply and demand continuing to favor sellers, prices continue to rise year over year.
According to Curbed by Miller Samuel/Douglas Elliman, the median home sale price for all of New York City in the first quarter of 2010 was $383,699. Prices started rising in 2013 and by the end of 2018, that number had almost doubled to $658,000. 2018 was the sixth consecutive year of home price gains in New York City. The real estate market was already cooling off and the pandemic has further slowed it down after NYC became its epicenter.
According to NeighborhoodScout's data, the cumulative appreciation rate over the ten years has been 72.84%, which ranks in the top 40% nationwide. This equates to an annual average real estate appreciation rate of 5.62%. Despite the pandemic drastically affecting the New York real estate market, during the latest twelve months, New York's appreciation rate has been 14.65%. In the latest quarter, NeighborhoodScout's data show that house appreciation rates in New York were at 5.57%, which equates to an annual appreciation rate of 24.22%.
Let us look at the price trends recorded by Zillow over the past few years. Since the last decade (May 2012), the NYC home values have appreciated by nearly 64% — Zillow Home Value Index. ZHVI is not the median price of homes that are sold in a month within a geographic region.
It is calculated by taking all estimated home values for a given region and month (Also called Zestimates), taking a median of those values, and applying some adjustments to account for seasonality or errors in individual home estimates. It, therefore, represents the whole housing stock and not just the homes that list or sell in a given month.
By this calculation, the current typical home value of homes in NYC is $759,901. It indicates that 50 percent of all housing stock in the area is worth more than $759,901 and 50 percent is worth less (adjusting for seasonal fluctuations and only includes the middle price tier of homes). In April 2021, the typical value of homes in NYC was around $705,000. NYC home values have gone up 7.7% over the last twelve months.
Here's Zillow’s housing market forecast for New York, NYC, and New York-Newark-Jersey City Metro. According to their forecast, the supply and demand dynamics will likely push prices north again over the next 12 months. Mortgage rates remaining low, pent-up demand, and good discounts will keep the demand high in 2022. The New York housing market could favor sellers over buyers.
- New York-Newark-Jersey City Metro home values have gone up 12.7% (current = $600,354) over the past year and they will continue to rise over the next 12 months.
- Home values in New York (statewide) have risen 14.2 percent (current = $393,063) in the last year and will continue to rise in 2021.
- Over the last year, home values in New York City have increased by 7.7 percent.
- The latest market forecast is not available for NYC.
- However, it would probably remain a buyer's market in 2022.
The chart below, created by Zillow, shows the growth of typical home values since 2012 (ZHVI).

Please keep in mind that this is a broad market forecast and cannot be guaranteed to be 100 percent accurate. The ongoing pandemic has dramatically altered the dynamics of New York's real estate market, which can vary by neighborhood. According to submarket reports from various local brokerages, New York saw a record number of vacant apartments hit the market, resulting in the lowest rents in more than a decade. Strong buyer demand, on the other hand, has returned to a sales market that had been cooling for nearly three years.
For sellers in New York, it is a great time to sell. Motivated buyers are looking for houses for sale, and you are not competing with as many property owners. Homes are selling as quickly, if not faster than cars during the busiest time of year for consumers. Housing prices are expected to rise, but fresh supply is a positive sign. To make it easier and more possible for buyers to locate their dream house, more sellers are likely to put their properties on the market as a result of the recent price hike.
NYC Real Estate Market: Is It A Good Place For Investment?
Is NYC a Good Place For Real Estate Investment? Many real estate investors have asked themselves if buying a property in NYC is a good investment? The fact is that New York house prices are not only among the most expensive in New York, but New York real estate also is some of the most expensive in all of the U.S. Since NYC real estate is very expensive for many investors, there are several other areas where you can invest in real estate and we shall be discussing some of them here.
New York is a fairly walkable city in Queens County with a population of approximately 8,174,290 people. NYC has been one of the hottest real estate markets in the nation for many years. Despite the cooling off, New York City regularly ranks among the most expensive real estate markets in the world. However, that’s due to demand that simply hasn’t let up.
It’s a relatively good time to buy a property in New York as housing inventory is on the rise and competition is less. Currently, the NYC housing market is relatively more friendly to buyers than sellers. With the phased opening of the economy, buyers have been quicker to return to the housing market. It seems they want to cash in on the opportunity to purchase their favorite properties despite high interest rates.
The Impact of International Buyers in New York
Despite all the talk about the one percenter dominating this and that, the truth is that the international elite is bolstering the price of luxury real estate in New York City. They see NYC real estate investment as part of a multi-pronged approach. The property is almost certain to appreciate, so it is an investment. Owning a piece of the NYC housing market gives them a place to stay if they have to flee their home country. The money invested in the NYC housing market is typically not reported to their government, and it is almost guaranteed not to lose value. Ironically, foreign owners like these are much more willing to take a modest loss when they sell when they are no longer interested in the property.
New York City's Expanding Luxury Development
New York’s rent control laws don’t apply to luxury units, and developers have chosen to build these instead of the affordable housing the city needs. However, this development isn’t limited to the densest parts of New York City. For example, Staten Island’s North Shore is seeing new luxury condo construction. Interest in the area is driven by both the improved transit via the new ferry service and luxury buyers seeking relative bargains. This is aside from the oversupply of luxury penthouse units in the NYC housing market.
NYC Rental Market is Strong
The factors that led to the incredibly high rental rates in the NYC real estate market haven’t changed. One is the sheer number of people crammed into such a small space. Another matter to consider is all the zoning regulations that limit housing supply, though New York City has had the sense to give tax breaks to those who turn warehouses and commercial properties into rental units.
This means that non-residential properties can be a viable NYC real estate investment, assuming you can get permission to turn them into lofts, condos, or apartments. Strict eviction laws that make it difficult to remove tenants who are a nuisance, time-consuming to remove if late on rent, and nearly impossible to get rid of it in a rent-controlled unit all force property owners to charge much higher rent in the NYC housing market. It is the classic case of cost-shifting causing others to pay a fortune.
The median rent in New York City now exceeds three thousand dollars a month. One-bedroom apartments and studios rent for roughly three thousand dollars a month, while two-bedroom apartments rent for about 3,800 dollars a month. This is why the NYC real estate market is one of the most expensive in the world.
Current Rental Trends Due to Economic Affects of the Pandemic:
The pandemic reversed a decade of unrestrained rent growth in New York. High unemployment leads to higher vacancy rates, as the New Yorkers could no longer afford to live in the city. It also led to lower demand for the rental inventory piling onto the market as leases expired throughout the summer.
Due to the exodus of Manhattan renters to Brooklyn and the suburbs, there has been a rise in vacancies and falling rents. As demand continues to decrease, rent prices are likely to fall more than they did during the Great Recession. On the other hand, soaring vacancies and rental discounts have attracted a range of renters to neighborhoods that previously would have been unaffordable.
The first signs the city is making a comeback have appeared, with Manhattan and Brooklyn lease signings seeing the highest surge in the past 13 years. The current rental trends (as shown above) that new leases are increasing but since many of the rental market metrics remain very weak, further price declines would likely occur in the coming months.
The Zumper New York City Metro Area Report analyzed active listings last month across 15 metro cities to show the most and least expensive cities and cities with the fastest growing rents. The New York one bedroom median rent was $2,114 last month. New York City was the most expensive market with one-bedrooms priced at $3,420 whereas Newark was the most affordable city with rent at $1,350.
Here are the places where it makes sense to invest in rental properties in the New York City Metro Area. These are the places where the demand for rentals is growing strong in 2022.
The Fastest Growing Cities For Rents in New York City Metro Area (Y/Y%)
- New York City had the fastest growing rent, up 37.9% since this time last year.
- Poughkeepsie saw rent climb 37.7%, making it rank as second.
- Hoboken was third with rent jumping 37%.
The Fastest Growing Cities For Rents in New York City Metro Area (M/M%)
- East Orange had the largest monthly rental growth rate, up 5.3%.
- Stamford rent grew 5.2% last month, making it the second fastest growing.
- Hackensack & West New York were tied for third with rents both climbing 5.1%.

The Known Opportunities for Bargain Hunters
The NYC real estate market may seem dominated by five and ten thousand dollars a month apartments in Tribeca, but there are much cheaper neighborhoods. If you’re considering buying NYC real estate investment properties, start looking in neighborhoods like East Brooklyn, High Bridge, and Saint Albans. The average rent for apartments in Saintalbans is roughly 1200 dollars a month, while rents are less than 1500 a month in High Bridge. Since property values are based on multiples of the rental income, this means that you can snap up a small apartment building in the cheapest NYC real estate market for the cost of one luxury condo.
The Overall Cooling of the NYC Housing Market
The NYC housing market can be described as cool, though some will call it a buyer’s market. Things slowed down significantly in 2016 and 2018 as several groups of international buyers found it harder to buy properties or had less need to do so. On top of this is the trend of properties selling below their asking price unless they’re the cheapest unit in the neighborhood. Sales volume has increased somewhat, but there is a wider selection now than several years ago. More importantly, prices are a tenth to a quarter below their 2015 highs.
This is a good time to buy an NYC real estate investment property because the market will continue to warm up as long as the economy remains stable. NeighborhoodScout's data show that during the latest twelve months, New York's appreciation rate, at 5.25%, has been at or slightly above the national average. In the latest quarter, New York's real estate appreciation rate has been 1.04%, which annualizes to a rate of 4.22%.
The Softening New York Luxury Market
The increasing supply of luxury real estate relative to demand is leading to more being done to sell units at their list price. For example, luxury apartment buildings are offering more and more amenities to justify their high monthly rents. Another sign that the market is softening is the growing time on the market for such properties. A few notable properties have sold only after being subdivided into more “affordable” luxury units.
This means that investors with the money could buy a larger unit as a form of NYC real estate investment, subdivide it, and then sell it for a profit. If you have the cash and can close on the property, you could buy these premium properties for up to half of the listing price, too. The alternative is buying slow-moving one and two-bedroom apartments knowing they’ll eventually be worth more.
We mentioned the softening of the NYC housing market already, especially at the higher end. We brought up the increased amenities being used to fill luxury properties that aren’t being held as an NYC real estate investment. However, many properties may sit on the market for years. This is enabled by a large number of properties not lived in year-round and those who simply don’t want to reduce the price tag of their property to a point lower than what they paid for it. As listings pile up and the ongoing carrying costs like high property taxes rack up, expect to see a wave of sellers who will mark down their New York City real estate to move it because they can’t afford to wait to sell it.
The Legislation on the Table Will Increase NYC Rental Rates
There are around a million rent-stabilized apartments in New York City. There are several bills in the Democrat-controlled state senate and a massive tenant’s rights push that will likely lead to tighter restrictions on landlords. For example, it would be harder to get apartments removed from the rent-stabilization policy and limit the ability of landlords to raise rents after existing tenants move out.
While this hurts landlords who own rent-controlled properties, stricter rent control rules result in a reduction in housing supply and rents going up five percent more than they would have otherwise. Conversely, landlords who don’t want to deal with the hassle anymore may be willing to sell properties at a discount simply to get out from under the oppressive regulations.
Disclaimer: Covid-19 may have impacted the NYC real estate market in a way that is not 100% accurately reflected here. When referencing the data published on this page for investment-related decisions, please keep in mind that the data provided here is not solely responsible for depicting the market's current reality.
New York Real Estate Investment: Where to Invest?
New York is dominated by renter-occupied one or two-bedroom apartments. 76.75% of New York's dwellings are rentals. As per Neigborhoodscout.com, a real estate data provider, one and two-bedroom large apartment complexes are the most common housing units in NYC. Other housing types prevalent in NYC include single-family detached homes, duplexes, rowhouses, and homes converted to apartments.
The New York housing market has affordable townhomes. New York's single-family homes account for just 1.15% of the city’s housing units. During the latest twelve months, the New York real estate did cool off. However, the cumulative appreciation rate over the ten years has been 38.81%, which ranks in the top 30% nationwide. Evaluate the specifics of the NYC housing market at the time you intend to purchase. Hiring a local property management company can help in finding tenants for your investment property in NYC.
New York City's housing market is one of the most costly and competitive in the country. There are 237 neighborhoods in New York (as per Realtor.com). Tribeca has a median listing price of $3.7M, making it the most expensive neighborhood. Riverdale is the most affordable neighborhood, with a median listing price of $355K. Here are some of New York's most popular neighborhoods, along with their median listing prices, as reported by Realtor.com as of April 2022.
NYC Neighborhoods |
Median Listing Price |
$/SqFt |
Upper East Side |
$1.5M
|
$1.4K
|
Upper West Side |
$1.5M
|
$1.6K
|
Riverdale |
$355K
|
$357
|
Midtown East |
$1.1M
|
$1.3K
|
Chelsea |
$2M
|
$1.9K
|
Great Kills |
$649K
|
$428
|
Harlem |
$875K
|
$1K
|
Sheepshead Bay |
$460K
|
$452
|
Flushing |
$638.8K
|
$646
|
Tribeca |
$3.7M
|
$2K
|
Park Slope |
$1.6M
|
$1.3K
|
Eltingville |
$625K
|
$392
|
West Village |
$1.5M
|
$2.3K
|
New Springville |
$498.9K
|
$394
|
Flatbush |
$680K
|
$785
|
Bedford-Stuyvesant |
$899K
|
$887
|
Bayside |
$749K
|
$607
|
Bay Ridge |
$535K
|
$564
|
Williamsburg |
$1.4M
|
$1.4K
|
Westerleigh |
$650K | $426 |
There are some buyer-friendly neighborhoods in New York City where buyers have a bit more negotiating power in neighborhoods as compared to sellers. Jackson Heights is one of New York City’s most buyer-friendly neighborhoods at the moment with home prices under $700,000. Other buyer-friendly markets with a median sales price below $700,000 include Rego Park, where the median sales price in Oct 2021 was $389K, trending down -8.9% year-over-year. The sale-to-list price ratio was 100 percent.
The median list price of homes in Sheepshead Bay was $499K in Oct 2021, trending down -5% year-over-year. The sale-to-list price ratio was 97.72 percent. The median list price of homes in East Flatbush was $650K, trending up 8.9% year-over-year. The sale-to-list price ratio was 100 percent. The median list price of homes in Brighton Beach was $569K, trending up 16.4% year-over-year. The sale-to-list price ratio was 97.03 percent.
Buyers have a bit more negotiating power in neighborhoods where the median home price falls between $700,000 and $1 million. In areas like Midtown East, where the median sales price is $872,500. Homes in Midtown East sold for approximately the asking price on average in Oct 2021. The other neighborhoods best for buyers looking to spend between $700,000 and $1 million are Bayside, where the median sales price in Oct 2021 was $720,000 and the sale-to-list price ratio was 99.37 percent; Gravesend ($684,500, 96.98 percent); Flushing ($838,000, 96.38 percent); and Bay Ridge ($499,000, 98.14 percent).
All of this could vary from time to time and can be checked on Realtor.com. Check out some of the best neighborhoods for investing in New York for the long term→ These neighborhoods have been selected from all the five boroughs.
If you think of investing in NYC, you have decided on a long-term investment property. Here are the ten neighborhoods in NYC having the highest real estate appreciation rates since 2000—List by Neigborhoodscout.com.
- Broadway / W 225th St
- Amsterdam Ave / W 166th St
- East Rd / West Rd
- W 116th St / Amsterdam Ave
- W 57th St / 5th Ave
- W 58th St / Ave Of The Americas
- W 30th St / 9th Ave
- Barclay St / Church St
- Broadway / Grand St
- Madison Ave / E 60th St
Other Markets For Investing In New York Real Estate
Apart from NYC, you can also invest in Buffalo, NY. Ignore the Big Apple and look to the west if you want to buy rental real estate in New York. The Buffalo real estate investment offers a surprisingly good deal with low prices and relatively high rental rates. The Buffalo real estate market is dominated by older homes. A majority of homes in the Buffalo housing market were built before World War 2.
Interestingly, this also means that many small apartment buildings are designed to serve a population that rented small units close to their jobs. For example, roughly a third of homes are single-family detached homes, while almost half take the form of small apartment buildings. This creates an excellent opportunity for those in the market for Buffalo rental properties. You could buy a small apartment building with multiple tenants for the cost of a single rental property in a more expensive New York real estate market.
Another real estate market in the state of New York is in Syracuse. Syracuse's real estate market offers cheaper property with a higher return on investment and a less hostile legal climate. It is one of the better choices if you want to invest in New York state. Another issue that factors into the equation is the job market. Lots of cities have a great quality of life but almost no one can afford to live there.
The Syracuse housing market ranked 6.3 out of 10 for its job market. That’s better than rural and much of upstate New York. And it is why there is a slow trickle of people moving in to replace those who leave. That’s why the Syracuse real estate market has a net migration of 5 or a stable population. This is in sharp contrast to the depopulation seen in most Rust Belt cities. It also means Syracuse's real estate investment properties will hold their value for the foreseeable future if they don’t appreciate it.
Albany is another real estate market that is good for investment. Albany is a steadily appreciating real estate market. While it isn’t as famous or hot as NYC, it offers an affordable entry point and a massive pool of perpetual renters. Though it may not be somewhere you want to live, many locals are choosing to stay and make their homes here. And that will continue to drive demand for Albany real estate investment properties as long as they are priced right.
You can also consider Rochester. The Rochester real estate market is stable, offering slow appreciation, affordable properties to outsiders, and good returns. It has strong, long-term potential that is only buoyed if NYC collapses. And this is one of the reasons why being everything the Big Apple isn’t is in your favor.
The Rochester real estate market enjoys a healthy population profile. Roughly a quarter of the population consists of children, and many are likely to remain due to the healthy job market. It also means that the Rochester housing market won’t crash if the job market weakens the way San Francisco collapses whenever the tech bubble bursts. Others choose to remain here because of the low cost of living.
Let us know which real estate markets in the United States you consider best for real estate investing!
Please do not make any real estate or financial decisions based solely on the information found within this article. Some of the information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US. This article aimed to educate investors who are keen to invest in New York real estate. Purchasing an investment property requires a lot of study, planning, and budgeting. Not all deals are solid investments. We always recommend doing your research and taking the help of a real estate investment counselor.
References
Market Data, Reports & Forecasts
https://www.nysar.com/news/market-data/reports
https://www.redfin.com/blog/data-center
https://www.zillow.com/new-york-ny/home-values
https://www.realtor.com/realestateandhomes-search/New-York_NY/overview
https://streeteasy.com/blog/nyc-housing-market-data/
https://www.redfin.com/city/30749/NY/New-York/housing-market
https://www.elliman.com/corporate-resources/market-reports
https://www.propertyshark.com/Real-Estate-Reports/nyc-real-estate-covid19/
Foreclosures
https://www.realtytrac.com/statsandtrends/ny/new-york-county/new-york
https://www.propertyshark.com/Real-Estate-Reports/NYC-Foreclosure-Report
International buyers
https://ny.curbed.com/2019/2/18/18229286/luxury-nyc-condos-real-estate-report
https://www.6sqft.com/why-american-buyers-are-replacing-foreigners-in-the-luxury-market
Softening luxury market
https://www.businessinsider.com/new-york-city-luxury-real-estate-not-selling-penthouse-gimmicks-2019-2
Legislation
https://www.brickunderground.com/blog/2015/01/rent_stabilization_misconceptions
https://www.gsb.stanford.edu/faculty-research/working-papers/effects-rent-control-expansion-tenants-landlords-inequality-evidence
https://www.politico.com/states/new-york/newsletters/politico-new-york-real-estate/2019/04/09/mci-loophole-in-rent-regs-212895
Rules for high rents
https://ny.curbed.com/2019/5/14/18617990/new-york-rent-control-tenants-rights-landlords
https://www.forbes.com/sites/jeffreydorfman/2016/06/16/rent-control-treats-the-symptom-not-the-cause-of-rising-housing-costs
https://www.forbes.com/sites/scott-beyer/2015/04/24/how-ironic-americas-rent-controlled-cities-are-its-least-affordable/#7b7e3e048c62
High rental rates
https://www.trulia.com/research/rent-control-sf-nyc
https://www.rentjungle.com/average-rent-in-new-york-rent-trends
Potential for bargains
https://www.rentjungle.com/average-rent-in-new-york-rent-trends
The Overall Cooling of the Housing Market
https://www.forbes.com/sites/fredpeters/2019/03/12/the-real-estate-market-recovery-and-retreat-in-new-york-city/#3ee366d3100f
https://wolfstreet.com/2019/02/11/liquidity-in-new-york-citys-housing-market-dries-up
Tax law
https://taxfoundation.org/salt-act
https://www.cnbc.com/2019/04/01/manhattan-real-estate-sales-fall-for-sixth-straight-quarter.html
Expanding luxury development
https://www.businessinsider.com/nyc-penthouse-expensive-surplus- divided-up-smaller-units-sales 2019-1
https://object.cato.org/sites/cato.org/files/serials/files/regulation/2018/12/regulation-v41n4-2.pdf