The pace of life in New York City, the financial, business, cultural, sporting, entertainment and fashion centre of the USA, is unsurpassed anywhere else in the world. The five boroughs of Brooklyn, Queens, Manhattan, The Bronx and Staten Island make up America’s most densely populated city and include iconic landmarks such as the Statue of Liberty and Grand Central Station.
New York’s economy is buoyant and residential properties are always in demand. Average property prices reached $674,500 in September 2018, which masks a wide price range across the city. In the most expensive neighbourhoods such as Tribeca and Soho on Manhattan, prices average nearly three million dollars.
New York is currently experiencing a construction boom. Nearly 50,000 new homes completed in 2017, which is 25% more than the annual average over the past decade. Completions are expected to remain elevated over the short-term, with new multifamily supply making up a significant portion.
Higher levels of supply in the rental market have contributed to a relatively modest level of rental growth of 1.4% year-on-year in Q2 2018.
A similar trend is playing out in the sales market where price growth has been cooling over the past year, driven by the high-end market segment where stock levels are high.
Overall, the proportion of listings on Zillow with a price decrease has been rising steadily over the past year from 8% in November 2017 to 13% in November in 2018. This indicates that New York’s residential sales market is becoming increasingly competitive where buyers are at an advantage.