Manhattan condo price growth will cool in 2015: report

StreetEasy predicts uptick of only 3.9 percent next year

New York /
Dec.December 10, 2014 12:01 AM

Think Manhattan condo prices couldn’t possibly keep rising? StreetEasy shares your sentiment.

In its first-ever housing predictions report, the listings website, a subsidiary of Zillow, projected condo prices would rise 3.9 percent in 2015 – roughly half of the 7.8 percent growth in prices in 2014.

“We’re going from a boil to a simmer,” said Alan Lightfeldt, StreetEasy’s chief data scientist. “I think in 2015 we’re seeing a return to normal in the Manhattan condo market.”

Meanwhile, buyers exasperated with a lack of Manhattan inventory may look to Brooklyn and Queens for their next purchases. This year was the fifth straight year that inventory in Manhattan declined, while Brooklyn saw its inventory grow 8.6 percent and Queens saw inventory grow 8.5 percent.

The report does not provide data on condo prices in Brooklyn and Queens. When it comes to rentals, though, Brooklyn is on track to be the most unaffordable borough for renters in 2015. (RealtyTrac reported a similarly grim outlook for the Brooklyn sales market last week, naming it the most unaffordable in the U.S.)

“When we crunched the numbers and looked at rent affordability, it will be a serious issue in 2015,” Lightfeldt said, “particularly in Brooklyn, where a typical renter pays [rent amounting to] 60 percent of their income.” Elsewhere in the city, the rate is closer to 40 percent.

Rapidly growing housing costs in parts of Brooklyn – such as Crown Heights and Bedford-Stuyvesant – are making the problem even more acute, Lightfeldt added.

The report also named the top 10 “hot” neighborhoods in 2015, based on factors such as growth in median asking rents, sales prices and population growth. Dumbo snagged the top spot, followed by Brooklyn’s Vinegar Hill, Battery Park City, West Harlem, Jamaica, Fulton/Seaport, Nomad, Spuyten Duyvil, Prospect Park South and Morningside Heights.


Related Articles

arrow_forward_ios
Silverback's Josh Schuster and Hopson's Chu Mang Yee with rendering of the project at 131-141 East 47th Street (LinkedIn, Getty, Ismael Leyva Architects)
Hopson nabs $156M for Midtown tower, agrees to part ways with Silverback
Hopson nabs $156M for Midtown tower, agrees to part ways with Silverback
OKO's Vladislav Doronin and the Crown Building ( OKO Group, Aman)
Crown Building notches another peak sale with $55M condo
Crown Building notches another peak sale with $55M condo
Barbara Russo, Danielle Englebardt, and Oren and Tal Alexander (Getty, iStock BFA)
Ranking the top residential brokers on the Upper East Side
Ranking the top residential brokers on the Upper East Side
Vanke US managing director Kai-yan Lee, RFR’s Aby Rosen and 100 East 53rd Street (Vanke US, Getty, M18 Public Relations)
With Aby Rosen out, Chinese developer slashes Midtown condo prices
With Aby Rosen out, Chinese developer slashes Midtown condo prices
Northwind Group's Ran Eliasaf, Michael Shvo and the Mandarin Oriental Residences (SHVO, DBOX)
Shvo gets $162M loan for Mandarin Oriental Residences
Shvo gets $162M loan for Mandarin Oriental Residences
75 Essex Street (Google Maps, iStock, Illustration by Kevin Cifuentes for The Real Deal)
Fourteen-story residential conversion planned for 75 Essex Street
Fourteen-story residential conversion planned for 75 Essex Street
Cameron and Tyler Winklevoss with 20 Green Street (Getty, Compass)
Winklevoss twins list Soho penthouse for $17M
Winklevoss twins list Soho penthouse for $17M
Allen Gross, chairman, GFI, in front of 119 West 56th Street (GFI Hospitality, Dkfreitas, CC BY-SA 4.0/via Wikimedia Commons)
GFI, Elliott Management plan 99 condos at Midtown hotel
GFI, Elliott Management plan 99 condos at Midtown hotel
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...