Watch: TRD weighs in on the national housing landscape

Record year for NYC luxury housing, questions remain on commercial sector

New York /
Sep.September 29, 2021 01:15 PM

Editorial Director Hiten Samtani discusses the luxury market, national trends and the commercial sector. (iStock)

This year’s housing market has been dominated by sky-rocketing prices and record-breaking shifts among the luxury market, according to TRD Editorial Director Hiten Samtani.

In an appearance on “The Watch List,” a program on the TD Ameritrade Network, Samtani noted the luxury market in Manhattan — defined as sales of $4 million and greater — has already seen a record year. The market hit $11.4 billion last week after 27 contracts were signed, breaking an annual record of $11.3 billion, which was set in 2014.

“The luxury markets have been on fire,” Samtani said.

The housing market isn’t only booming for the ultra-rich buyers of New York City, Samtani noted. Miami has surpassed Los Angeles as the second most expensive housing market in the United States, according to the latest report from RealtyHop.

“These enclaves seem to have become magnets for the super-rich, they’ve obviously been untethered from location when it work, so it’s all about play, all about lifestyle,” Samtani said.

Prices have been surging in Magic City as demand for condos and single-family homes rose and supply declined. A household in Miami should expect to pay 81.6 percent of median income towards homeownership costs, right above 81.2 percent in Los Angeles.

While the housing market surges, concerns persist for the commercial real estate sector, which took a hit during the pandemic as more companies shifted to work-from-home models. Tech firms taking advantage of low prices and interest rates have emerged as the biggest customers of office properties, but the markets in major cities are still uncertain.

Samtani said interest rates likely won’t affect ultra-luxury homebuyers, but would affect the central business districts in cities like Los Angeles and New York.

“That’s where I feel like there’s going to be the biggest question marks,” Samtani said. “There’s no reason for someone to come in five days a week, over and over — despite what the big landlords say — there’s been a dramatic unbundling of work from location.”

Watch the full video below:

 
View this post on Instagram
 

A post shared by The Real Deal (@therealdeal)





    Related Articles

    arrow_forward_ios
    Single-family rentals are increasingly seen as a more realistic alternative to ownership, given the hot housing market and income inequality. (iStock)
    Single-family rentals soaring in hot housing market
    Single-family rentals soaring in hot housing market
    (Getty)
    Manhattan buyers shun fixer-uppers
    Manhattan buyers shun fixer-uppers
    Sheldon Solow and the Hamptons estate (Getty, Douglas Elliman)
    Sheldon Solow’s Hamptons home gets $10M price cut
    Sheldon Solow’s Hamptons home gets $10M price cut
    Investors home purchases rose to 15 percent in the second quarter, a year-over-year increase of 3.9 percentage points. (iStock)
    Investors take bigger bite of US housing, and pay less
    Investors take bigger bite of US housing, and pay less
    Chicago Bulls’ DeRozan buys mansion from Michael Jordan’s ex-wife at discounted $4.5M
    Chicago Bulls’ DeRozan buys mansion from Michael Jordan’s ex-wife at discounted $4.5M
    Chicago Bulls’ DeRozan buys mansion from Michael Jordan’s ex-wife at discounted $4.5M
    Existing home sales were on the upswing in September following a slight dip in August. (iStock)
    Existing home sales rebound in September, rising by 7%
    Existing home sales rebound in September, rising by 7%
    Prices for the few homes in Fairfield are still going up (iStock)
    Few listings, sustained demand keeps Fairfield home prices near record highs
    Few listings, sustained demand keeps Fairfield home prices near record highs
    520 Park Ave and Gil Agmon (Getty, Delek Motors, Robert A.M. Stern Architects)
    After split, 520 Park sponsor unit sells to Israeli automotive exec for $36M
    After split, 520 Park sponsor unit sells to Israeli automotive exec for $36M
    arrow_forward_ios

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

    Loading...