Collaborative Report Examines Buyer Preferences in October 2021
Marketproof teamed up with our friends at UrbanDigs to analyze the New York City residential market in terms of preference for new development vs. resales in Manhattan vs. Brooklyn. Together, we looked at the transactions in October 2021, and just as we anticipated, it was a tale of two cities.
While activity in Manhattan and Brooklyn was continually improving for several quarters coming out of the pandemic, those trends have begun to diverge. A significant increase in the overall dollar volume of contracts signed in both boroughs has hidden the fact that certain pockets are decelerating, while others have continued their upward trend.
Brooklyn Buyers Favored New Development
Interest in Brooklyn’s affordable coop units, the segment that jump-started the post-covid recovery, has since declined while similarly-priced new development condos appear to be accelerating.
Manhattan Experienced a Luxury ($4M+) Boom
In Manhattan, the recovery also began with lower-priced units, but now we’re seeing enthusiasm shift toward the higher-priced luxury sectors, across new development AND resales, but mostly new development.
What Can we Expect in Q4?
As we enter the home stretch of Q4 and the end of 2021, a year that brought record contract activity and immense optimism, it will be interesting to see if the pace of luxury sales continues. With growing inventory in both boroughs, rising prices, and a robust pipeline of 124 new development projects with 2,300 units that have not yet begun sales (not to forget the current 13,000 shadow units detected by Marketproof), it will be interesting to see how the market evolves into the New Year.
11.1.2021-Marketproof-UrbanDigs-October-2021-New-Development_Resale-ReportTop image of 552 Prospect Place courtesy of Corcoran.
