Manhattan and New York City are synonymous for all intents and purposes. More than 1.6 million people live in Manhattan. Currently, the Manhattan real estate market appears to be favoring sellers. The surge in property transactions suggests heightened demand, potentially creating a competitive environment that sellers can leverage.
Current Manhattan Real Estate Market Trends 2024
Market Overview for February 2024
Throughout February, Manhattan witnessed a median home sale price of $999K, showcasing a modest 0.4% shift compared to the previous year, according to PropertyShark. Notably, 831 properties exchanged hands during this period, marking a 4.3% uptick from the preceding year. However, the median price per square foot took a slight dip, landing at $1,314, indicating a -7.9% year-over-year change. These figures, while indicative of **fluctuations**, underscore the enduring allure of Manhattan's real estate market.
Residential Properties Sold in Manhattan
Delving deeper into the residential sector reveals a diverse landscape of property types, each with its own **unique** characteristics and market dynamics.
- Condos: With a median sale price of $1.6M, condos in Manhattan experienced a commendable 5.1% year-over-year increase. However, the median sale price per square foot saw a marginal decline of -8.7%.
- Coops: Coops, on the other hand, boasted a median sale price of $780K, marking a 2% year-over-year change. Interestingly, the median sale price per square foot also experienced a modest uptick of 1.9%.
- Houses: While houses in Manhattan commanded a lofty median sale price of $14M, they witnessed a -8.8% year-over-year decline. Despite this, the price per square foot surged by 6.4%, highlighting a nuanced **shift** in the market.
These figures underscore the varied landscape of Manhattan's real estate market, with each **property** type charting its own course amidst the **dynamic** backdrop of the city.
Most Expensive Neighborhoods in the Manhattan Housing Market
Manhattan's allure extends beyond its iconic skyline, with neighborhoods boasting **exquisite** properties that command top dollar. Among these, several stand out as the most exclusive and sought-after locales:
- Hudson Yards: Topping the list is Hudson Yards, where the median sale price soars to an astonishing $20,000,000, reaffirming its status as a bastion of luxury living.
- NoLIta: NoLIta follows closely behind, with a median sale price of $6,050,000, embodying the essence of chic urban living.
- Hudson Square: With a median sale price of $3,325,000, Hudson Square offers a blend of sophistication and convenience, attracting discerning buyers.
- SoHo: SoHo's median sale price of $2,995,000 reflects its status as a cultural hub, where artistry meets luxury in perfect harmony.
- TriBeCa: Rounding out the list is TriBeCa, renowned for its cobblestone streets and loft-style living, with a median sale price of $2,947,500.
- NoMad: NoMad completes the lineup with a median sale price of $2,680,795, offering an oasis of tranquility amidst the bustling city streets.
- Two Bridges: Nestled along the East River, Two Bridges exudes a sense of tranquility amidst the bustling cityscape. With a median sale price of $2,142,325, this neighborhood offers an oasis of serenity for those seeking waterfront living.
- Carnegie Hill: Steeped in history and culture, Carnegie Hill boasts tree-lined streets and elegant brownstones. With a median sale price of $1,900,000, it remains a coveted address for those seeking refined urban living.
- NoHo: Known for its artistic flair and eclectic vibe, NoHo captivates with its trendy boutiques and avant-garde galleries. With a median sale price of $1,846,000, it attracts a creative community drawn to its bohemian charm.
- Chelsea: A melting pot of culture and creativity, Chelsea is home to renowned art galleries and trendy eateries. With a median sale price of $1,607,500, it offers a vibrant urban lifestyle in the heart of Manhattan.
- Battery Park City: Situated along the waterfront, Battery Park City offers stunning views of the Hudson River and Statue of Liberty. With a median sale price of $1,386,755, it provides a tranquil escape from the hustle and bustle of the city.
- Flatiron District: Named after the iconic Flatiron Building, this neighborhood boasts a mix of historic architecture and modern amenities. With a median sale price of $1,325,000, it appeals to those seeking a blend of old-world charm and contemporary living.
- East Village: Known for its lively nightlife and eclectic dining scene, the East Village exudes a bohemian vibe that attracts artists and free spirits. With a median sale price of $1,235,000, it offers a vibrant urban experience like no other.
- Theatre District – Times Square: Iconic and electric, the Theatre District – Times Square pulsates with the energy of Broadway and the neon lights of Times Square. With a median sale price of $1,186,750, this bustling neighborhood offers an unparalleled entertainment experience at every corner.
- Gramercy Park: Tucked away amidst tree-lined streets and historic brownstones, Gramercy Park exudes an air of exclusivity and elegance. With a median sale price of $1,185,000, it remains a coveted enclave for those seeking privacy and prestige.
- Lenox Hill: Situated on the Upper East Side, Lenox Hill is synonymous with luxury and sophistication. With a median sale price of $1,175,000, it offers a blend of upscale living and proximity to renowned cultural institutions.
- Upper West Side: Known for its classic pre-war buildings and leafy streets, the Upper West Side exudes a timeless charm. With a median sale price of $1,162,500, it appeals to families and professionals seeking a tranquil retreat in the heart of the city.
- Greenwich Village: Bohemian and eclectic, Greenwich Village has long been a haven for artists, intellectuals, and free spirits. With a median sale price of $1,100,000, it boasts a vibrant arts scene and a rich cultural heritage.
- Lower East Side: Once a melting pot of immigrant communities, the Lower East Side has undergone a renaissance in recent years, blending old-world charm with modern amenities. With a median sale price of $1,037,500, it offers a dynamic urban lifestyle with a nod to its storied past.
- Clinton – Hell's Kitchen: Vibrant and eclectic, Clinton – Hell's Kitchen is a melting pot of cultures and cuisines. With a median sale price of $1,027,499, it attracts a diverse mix of residents drawn to its lively atmosphere and convenient location.
These neighborhoods exemplify the rich tapestry of Manhattan's real estate market, each contributing its own **unique** flavor to the city's dynamic landscape. Whether you're drawn to the glitz and glamour of Times Square or the bohemian charm of Greenwich Village, Manhattan offers an array of options to suit every taste and lifestyle.
Manhattan Real Estate Investment Overview
We have already discussed the Manhattan housing market trends. Purchasing an investment property in Manhattan real estate is a little different from shopping for your car or primary residence. Manhattan has been included among the cities for real estate investment over the past few years. While you still want to get the most for your money, if you are looking to make a profit, you don’t want to buy the most expensive property on the Manhattan real estate market and expect to make a good profit on rents.
Perhaps you are looking for a slightly different hold-over, an investment property in Manhattan that you might move into or sell at retirement in the future! Either way, knowing your profit potential and purpose is the first thing to consider. Some of the best neighborhoods in Manhattan are Upper East Side, Upper West Side, Midtown East, Woodside, Brooklyn, Astoria, SoHo, Harlem, Elmhurst, Tribeca, Williamsburg, Maspeth, The Heights, Queens, Long Island City, Greenpoint, and Sunnyside.
Upper West Side offers an abundance of public green space. It is home to Lincoln Center, which hosts performing arts institutions like the Metropolitan Opera and New York City Ballet. Further away from the city center, you'll find charming Manhattan neighborhoods like Hamilton Heights and Washington Heights. Gramercy Park is one of the most beautiful areas of Manhattan.
It is located in a quiet corner and attracts fewer tourists than the nearby East Village and Soho. Battery Park is a favorite choice among families and it always ranks among the safest neighborhoods in New York City. With the newly designed Hub with 11 subway lines, transportation is very convenient from here.
Lenox Hill is a posh neighborhood on the Upper East Side. It runs from about 60th Street up to 77th Street and Fifth Avenue to Lexington Avenue. It forms the lower section of the Upper East Side, closest to Midtown. Some of the most expensive real estate in Manhattan is located in this neighborhood. The one thing about Lenox Hill that it is famous for is the hospital. Lenox Hospital is one of the best in NYC. Lenox Hill Hospital just joined forces with North Shore-LIJ Health System, which now provides a much larger hospital in NYC.
Let’s take a look at the number of positive things going on in the Manhattan real estate market which can help investors who are keen to buy an investment property in this city.
The Diverse Manhattan Housing Market
The Manhattan real estate market shouldn’t be a top spot for investment because it is so expensive or famous. Its biggest draw is the sheer size of the Manhattan housing market. You can own a variety of condos, apartment buildings, and single-family homes in your Manhattan real estate investment portfolio scattered across a wide area and still be part of the same housing market. You only have to know one set of housing regulations affecting tenant screenings and evictions.
Demographic diversity is not relevant to this discussion. The sheer variety of Manhattan real estate investment properties is. The incredibly expensive Manhattan real estate market has resulted in novel, high-density projects that offer very high rates of return. For example, the rent-a-desk concept behind WeWork has led to a rent bunk of residential communities popping up, often just down the street from the rent desk places.
You could invest in these startups or renovate commercial space to create these high-density living arrangements. New York City has also revised its rules to allow for much smaller single-resident occupancy apartments. Just ensure you get the necessary permits before subdividing an existing unit because fines can be steep.
There are a variety of rules that lead to tenants staying once they find a decent place in the Manhattan housing market. We periodically hear the stories of someone who moved into an apartment, got rent control, and stayed for sixty years. In the right circumstances, this is a boon for a Manhattan real estate investment property owner.
You don’t have to worry about vacancies. Then there’s no need to advertise the property or worry about the rules regarding such advertisements. A good tenant will pay the rent month after month. It is guaranteed cash flow, and it is profitable as long as you can keep property maintenance costs and taxes below that level.
The Long-Term Real Estate Forecast
New York City has long been the biggest city in the United States in almost every way. It has the largest school district in the country. It has also garnered attention for having the most people moving out in record numbers. We have to keep this in perspective since thousands moving out every week from NYC have far less of an impact than if it were a small metro area like San Antonio.
In the short term, this creates a buying opportunity in the Manhattan real estate market. After all, prices are down. The Manhattan housing market, though, remains one of the most expensive in the world. The local leadership driving away jobs and attacking schools is contributing to this. Fortunately, it means Manhattan real estate investment properties will rebound as soon as there is a change in leadership.
The Manhattan real estate market is famous for an average one-bedroom apartment surpassing 3000 dollars a month in rent. However, you don’t have to have millions of dollars of cash on hand to consider Manhattan real estate investment. There are cheaper properties in the boroughs, and they’ll command 1500 dollars a month in rent for a one-bedroom and much more for a two-bedroom or three-bedroom apartment. And rents in the Manhattan housing market are going up faster than the rate of inflation.
The Higher Quality of Life in New York City
People may come to New York City to try to make it big on Broadway, broadcasting, or publishing. However, they only stay if it is worth their while, whether they work on Wall Street or earn a living some other way. Poor quality of life will drive people away, whether or not they have children but especially after they have children. And it is quality of life that makes the Manhattan real estate market a better play than San Francisco.
New York City has a homeless problem, but it doesn’t have poop so bad they have an app for that or needles littering the place. That will keep New York City's housing market demand strong for the long term. Stronger public transit and the number of activities available at any given time makes the city more attractive to Millennials, too.
The demographic churn you see in the NYC area is young adults moving to Manhattan for work, moving to the boroughs to afford a house or larger apartment when they have children, then moving again when they are childless middle-aged adults. However, most are not fleeing the metro area after leaving the tech sector as is being seen in San Francisco.
The Relative Deal on Property Taxes
New York has one of the heaviest overall tax burdens in the United States. However, that burden varies based on the type of income you receive and the property you own. For example, co-ops are not faced with comparable property tax bills to apartment buildings. Buy a building and renovate it to create affordable, high-density housing, and you’ll be eligible for significant property tax breaks.
At the other end of the market, the luxury condo buildings going in result in relatively low tax bills for the owners on the basis of the property’s selling price, though this could still yield a tax bill far higher than what the average person could pay. Recent changes to the property tax laws that are increasing the property tax bill most will face are contributing to the flood of multi-million dollar mansions and apartment buildings by those who don’t want to pay the bill.
Conclusion
Manhattan offers incredibly dense housing, incentives for more of the same, and a large, loyal renting population. If you can afford to invest here, it can be worth the effort. Therefore, finding a good Manhattan real estate investment opportunity would be a key to your success. Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process.
They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates. NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
Let us know which real estate markets you consider best for real estate investing! If you need expert investment advice, you may fill up the form given here. One of our investment specialists will contact you to discuss all facets of searching for, buying, and owning a turnkey investment property.
References
- https://www.zillow.com/Manhattan-ny/home-values
- https://www.propertyshark.com/mason/market-trends/residential/nyc/manhattan
- https://www.redfin.com/city/35948/NY/Manhattan/housing-market
- https://www.realtor.com/realestateandhomes-search/Manhattan_NY/overview
- https://www.streetadvisor.com/search/neighborhoods-in-manhattan-new-york-city-new-york
- https://www.cubesmart.com/blog/city-guides/nyc/5-of-the-best-neighborhoods-to-live-in-manhattan
- https://www.gothamgazette.com/state/8712-an-old-unfair-system-new-york-city-s-property-tax-conundrum-part-i
- https://www.citylab.com/equity/2015/05/why-billionaires-dont-pay-property-taxes-in-new-york/389886
- https://www.wsj.com/articles/new-more-broad-based-real-estate-tax-hits-developers-11554303511