Manhattan Renters Returning After Year Away; Construction Keeps Pressure on Class A Units
- Metro exiting challenging period. While fewer people left New York on a net basis in 2020 than in any of the previous three years, many residents did relocate out of Manhattan.
- Outer boroughs performing well, construction a concern. Most submarkets outside Manhattan posted sub-3 percent vacancy in June, with some areas such as Southeast Brooklyn and Ditmas
Park-Flatbush staying under 2 percent.
- The number of properties that changed hands in the first six months of 2021 was up by about 9 percent from the second half of 2020.
- Over the 12-month period ending in June properties traded at an average per unit price of $339,900, down 3 percent from the 2018 peak.
- Sales activity was up across all five boroughs over the past four quarters, with the largest jump occurring in Queens.
- Manhattan buyers targeted the Upper West Side most often, with numerous century-old properties with fewer than 20 units changing hands in a general range of $230,000 to $600,000 per unit.
* Forecast; ** Through 2Q
Sources: CoStar Group, Inc.; Real Capital Analytics; RealPage, Inc.