10 years of amNY: A decade in New York City real estate
Compared to 10 years ago, real estate in New York City is more expensive across the board and there’s less inventory, particularly for renters, according to experts.
Back in 2003, the city experienced unprecedented housing growth, according to the Real Estate Board of New York, with 15,143 new developments completed that year. There were 9,455 completed in 2012.
“2003 was really the beginning of that housing boom,” said Michael Slattery, senior vice president of research at REBNY. “We had just come out of 9/11 and the market was really taking off.”
Though there was a steep decline in 2008 due to the financial crisis, Slattery said permits for new developments picked up again in 2011 and 2012.
“There’s a clear recovery underway,” he said.
However, “now it’s a seller’s market due to reports of low inventory” in the rental market.
Low inventory is driving prices up, agreed Nathaniel Faust, an agent with Citi Habitats since 1998.
“I would say, depending on the location, a lot of apartments are double what they were in 2003, and that could be said for sales and rentals,” he said.
Another change from 10 years ago is the abundance of information online for apartment seekers, Faust said.
He cited new websites like StreetEasy and Trulia, whereas back in 2003 apartments were still advertised in newspapers and more information had to be requested directly from a broker.
“The job of a real estate agent has changed a little bit,” he said. “We’re less about providing information and more about providing service.”
As for where people want to live, hot neighborhoods in 2003 included the East Village, the Upper East Side and the Upper West Side.
Since then, areas along the outer borough waterfronts, like Williamsburg and Long Island City, have become popular, experts said.
“There are so many buildings now in Long Island City that didn’t exist 10 years ago,” Faust said.
Patricia Cliff, an associate broker with Corcoran and author of “The Art of Selling Real Estate,” noted that Harlem has grown in popularity since the mid-90s
“The Harlem Renaissance started in the late 90s and continued up to 2005, 6, 7, and those prices continue to rise and more people continue to go there,” she said.
Of course, the real estate market is shaped by outside forces, and few events in the past decade have impacted New York as much as Superstorm Sandy.
In the wake of the storm nest seekers have become wearier of flood zones, Cliff said.
“I find that people are who are looking in downtown Manhattan … the first question is, ‘what degree of flood zone [is this]?’” she said. “There’s a great consciousness that you could be in a bad way when the next tidal wave comes over New York City.
Here are some stats.
Number of new developments in New York City, according to the New York City rent guidelines board:
15,143 in 2003
9,455 in 2013
Average sales price per square foot in Manhattan, according to Citi Habitats:
$587.10 between May and October of 2003
$1,170 in the third quarter of 2013
Manhattan rental vacancy rate, according to Citi Habitats:
1.86% between May and October of 2003
1.37% in the third quarter of 2013
Average monthly cost of one-bedroom rentals in doorman buildings in Manhattan:
$2,438 between May and October of 2003, according to Citi Habitats
$4,022 in September 2013, according to real estate group MNS
Average monthly cost of one-bedroom rentals in non-doorman buildings in Manhattan:
$2,297 between May and October of 2003, according to Citi Habitats
$3,248 in September 2013, according to MNS