13 Aug New York City Real Estate on Rebound
New York City real estate developments that were shelved after the 2008 financial crisis are now switching back on, and include high-end markets across the city. Developers who remained patient over the past four years are now seeing the payoff, as Manhattan has once again become the first-choice destination for the cash of the world’s wealthy.
New downtown buildings that were once put on hold are moving forward, while conversions are soaring into the city and boasting soaring prices and high sales.
President of the Corcoran Sunshine Marketing Group Kelly Mack told the New York Times, “It’s a very powerful moment in new development right now. Developers are seeing a very strong opening in the market to really push their projects forward. These two years were really worth the wait.”
Since the second quarter of 2010, real estate contracts have risen by 26 percent, while new development inventory has dropped 58 percent. This tightening of the market has encouraged developers to jump back into the game. Mack explained that 58 percent of Corcoran’s projects currently underway were conceived before the downturn.
Additionally, Corcoran reports that another 1,500 new development units will be introduced each year for the next three years. Some of this newfound demand for NYC real estate comes from the coming of media and high-tech companies like Google that have been moving into the city, especially the Midtown South Area.
Even New York City residents are getting back in the real estate game, as the vacancy rate for Manhattan apartments rose slightly from .89 percent in May to 1.01 percent in June (report from Citi Habitats). This rise in vacancies is due to tenants buying homes rather than renting, according to Citi Habitat president Gary Malin.
While vacancy rates increased, the demand did not decrease, as rental rates continue to rebound, jumping an average of an additional $76 a month.
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