The Real Deal New York

Manhattan sees ‘barbell effect’ — boost in activity at ends of market, but middle lags

By Katherine Clarke | November 15, 2012 10:00AM

From the November issue: A confluence of economic factors are causing a “barbell effect” in Manhattan’s residential real estate market, where both the high- and entry-level segments of the market are seeing a surge in activity, while the middle of the market remains subdued.

Brokers and analysts told The Real Deal that they’re seeing increased demand for starter apartments as low interest rates and rising rents continue to propel first-time buyers to make purchases. They said they’re also seeing demand on the upper end of the market as wealthy foreign investors continue to view Manhattan as a safe haven while Europe is rocked by economic turmoil. [more]