Staten Island Homes Sales Rise as Inventory Shortage Worsens

Political consultants say Staten Island’s congressional district is as close as it gets to the average U.S. House district, in terms of where voters fall on the political spectrum. Its residential real estate market also seems to move in the same direction as the nation’s, even if homes in the borough cost 78 percent more.

The parallels were apparent in January, when pending sales on the island were up 11 percent and closed sales rose 15 percent from a year ago, according to a Staten Island Board of Realtors report. Nationally, sales were up 9.3 percent year-over-year.

Low inventory remained a problem last month on Staten Island and in the country as a whole. New listings in the borough were 13 percent lower and inventory levels 30 percent lower, as would-be sellers remained reluctant to give up their 3 percent mortgages to buy elsewhere and pay 7 percent interest.

The median sale price on Staten Island increased 4.8 percent to $720,000. For existing homes nationally, the figure in January was $404,400, up 6 percent.

“Despite inventory challenges, buyer activity remains high,” said Sandy Krueger, CEO of the Staten Island Board of Realtors, in a statement.

Homes also sold faster in the borough than a year ago: The average number of days spent on the market fell 16.5 percent to 68 days, and months-of-supply was down by more than a third, to 2.6 months. Nationally, that number was 3.3 months.

Unlike on Staten Island, inventory did improve nationally, rising by 16.2 percent from a year earlier. That’s bad for sellers, but good for buyers and real estate agents. Industry professionals on the island, which is accessible only by bridges with among the nation’s highest tolls, might not see many more homes on the market for a while.

Staten Island’s population is about 500,000 and doesn’t change much because it’s difficult to build housing there, thanks to low-scale zoning and a congested transportation network. Its major growth opportunities are near its ferry terminal in St. George and along its North Shore, where Mayor Eric Adams’ administration recently unveiled a $400 million “action plan.”

Madison Realty Capital did secure a rezoning on the St. George waterfront in 2021 for a 524-unit project called River North, but the development has been challenged from the outset. It was previously a 700-unit project of Brooklyn-based ZHL Group, which bought the three-parcel assemblage in 2020 and 2021.