Forget death and taxes, the only thing New Yorkers are sure of is the lack of parking and housing. New findings show the housing market is rapidly diminishing in both size and availability.
House sizes for first-time buyers in New York City are shrinking and the number of listings are becoming more limited, while prices and mortgage rates rise. A typical starter home in Manhattan is roughly equivalent to 4 1/2 New York City parking spots, according to data from a new report by StreetEasy.
Starter homes are what young adults buy with a combined income and some savings after several years working within their professional career, usually with the goal of starting a family in mind. They are typically priced between $400,000 and $800,000. Today, starter homes within this price range in New York City are 12% smaller than they were in the summer of 2019, declining from a median 1,088 square feet to 960 square feet, according to StreetEasy research.
In Manhattan, starter houses are the smallest of all the boroughs at 686 square feet. However there are more options for buyers within the $400,000 to $800,000 price range as inventory is up 3% in Aug. 2022 compared to Aug. 2019, before the pandemic. At $942 per square foot, Manhattan is the most expensive in the city.
Second to Manhattan, Brooklyn’s starter homes go for $658 per square foot but inventory is down an alarming 26% leaving families with very few options on the market. The median size of the home is 924 square feet as of Aug. 2022, which is 8% smaller than three years ago.
In Queens, starter-home buyers are getting the most for their money at $595 per square foot, but the inventory is down 11% making it hard for families to find anything. If they do find something, it is going to be smaller than what they could have gotten in 2019, as the Queens median has dropped by 156 square feet over three years.
With home price growth moderating, lower interests from before the pandemic, a strong labor market and low household debt, there are fewer new listings and a decline in houses on the market.
“Declining new listings suggest limited room for price cuts this fall with home shoppers competing for still limited options. This means well-positioned homes with right asking prices can and will still lead to competitive offers,” the report read.
In other words, it is a seller’s market this fall while buyers remain in competition for smaller and more expensive starter houses.
For more information on market data, to find new listings, or to put your house on the market, visit streeteasy.com.