New York Real Estate Market Trends
Inventory of available homes remained low throughout the year and prices continued to rise in New York State in 2021. Comparing December 2020 to December 2021, median sales prices increased 8.3 percent from $348,000 in 2020 to $377,000 in 2021. Year-to-date annual comparisons indicate that the 2021 median sales price was $370,000, a 19.4 percent increase over the $310,000 price in 2020, according to the New York State Association of REALTORS® housing report.
Inventory decreased by 30.4 percent in the final quarter of 2021. Homes for sale decreased to 30,654 units in December 2021, down from 44,071 units in December 2020. Months’ supply of inventory fell to 2.3 months last month, a 30.4 percent decline from the 3.7 months’ supply available in December 2020.
Last month, closed sales decreased from 15,974 units in December 2020 to 13,649 in December 2021. This represents a 14.8% decrease. Closed sales, on the other hand, increased 17.2 percent year over year from 130,635 in 2020 to 153,110 in 2021. In December 2021, pending sales increased to 10,494 homes, up from 10,087 in December 2020. This represents a 4% year-over-year increase. New listings fell 12.3 percent in December 2020, from 9,005 to 7,896 units. New listings were slightly lower year over year, down 0.2 percent.
The New York resale housing market continued to expand at a breakneck pace in Q4 2021, with record-high sales prices, low inventory, multiple offers, and strong buyer demand, according to NYSAR data.
How Much Will It Cost To Sell Your Home In New York City
You know how they say you have to spend money to make money? They must have been real estate agents, because selling a home isn’t cheapespecially in New York City. Between closing costs, repairs, and other real estate taxes, getting your house ready to sell can be quite pricey. Let’s break it down.
A House Plans And Cost To Build Estimates
House plans cost $2,000 to $8,000. You can find a wide variety of house plan companies online. Most offer search filters to narrow down the thousands of plans into a handful for you to consider, from a small two-bed country-style property to a sprawling modern farmhouse or Craftsman-style home.
Once you’ve purchased your chosen house plan, give the bid set to your builder. The bid set consists of all relevant plans, including elevations, wall sections, and floor plans. Based on this, your construction manager can give you an accurate “cost to build” estimate.
Depending on your needs, you’ll deal with a variety of design professionals. While it’s important that you interact with the key pros throughout the entire process, it’s best for you to work with a general contractor as your primary contact.
The general contractor will oversee the whole build and manage the other pros that are an integral part of the project.
Heres what a variety of pros may charge to build a house:
- Landscape architect fee average: $70$150 per hour
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The Legislation On The Table Will Increase Nyc Rental Rates
There are around a million rent-stabilized apartments in New York City. There are several bills in the Democrat-controlled state senate and a massive tenants rights push that will likely lead to tighter restrictions on landlords. For example, it would be harder to get apartments removed from the rent-stabilization policy and limit the ability of landlords to raise rents after existing tenants move out.
While this hurts landlords who own rent-controlled properties, stricter rent control rules result in a reduction in housing supply and rents going up five percent more than they would have otherwise. Conversely, landlords who dont want to deal with the hassle anymore may be willing to sell properties at a discount simply to get out from under the oppressive regulations.
Disclaimer: Covid-19 may have impacted the NYC real estate market in a way that is not 100% accurately reflected here. When referencing the data published on this page for investment-related decisions, please keep in mind that the data provided here is not solely responsible for depicting the market’s current reality.
Permits And Other Fees
All building permits within the city of New York are filed through the Department of Buildings NOW Public Portal, which calculates filing fees based on the total job cost. Local Law 56 of 2016 reflects the rates for new buildings as follows:
- 1, 2, 3-family dwellings: $0.06 per square foot, but not less than $100.00
- Fewer than seven stories:$0.26 per square foot, but not less than $280.00
- Seven stories or more:$0.45 per square foot, but not less than $290.00
This comes with a record management fee of $165 charged on the initial filing. Concrete work will also incur a flat fee of $390. For solar power installation, the minimum filing fee is $130 for the first $5,000 of the cost of alteration, plus $2.60 for each additional $1,000 in excess. Roofing Brooklyn NYC estimates the total cost of permit fees to be between $400 and $1,687.
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Average Closing Costs By County
Our Closing Costs Study assumed a 30-year fixed-rate mortgage with a 20% down payment on each countys median home value. We considered all applicable closing costs, including the mortgage tax, transfer tax and both fixed and variable fees. Once we calculated the typical closing costs in each county we divided that figure by the countys median home value to find the closing costs as a percentage of home value figure. Sources include the U.S. Census Bureau 2018 5-Year American Community Survey, Bankrate and government websites.
One of the closing costs fees youll have to pay is a New York State mortgage recording tax. Only about seven states charge this type of tax, and New York is one of them. New York City, Yonkers and several other cities also impose a local tax on mortgages in those jurisdictions. The state tax is 50 cents per $100 of mortgage debt, plus an additional special tax of 25 cents per $100 of mortgage debt. If the property is located in a city or town that has mortgage tax, youll pay an additional 25 to 50 cents. This tax is due at closing to the recording office of the county in which the property is located.
Sellers are responsible for an additional fee called the realty transfer tax. In New York, its $1.25 for each $500. There are some counties that might charge an additional fee. And, if the home is more than $1 million, theres an additional 1% fee, sometimes referred to as a mansion tax.
Nyc Mayoral Candidates Shaun Donovan And Ray Mcguire Botch Brooklyn Real Estate Question
This quarters price is up 1.1% from the first quarter quarter and up 11% from the same time last year when lockdowns had just started lifting.
Record prices in Brooklyn were set for the third consecutive quarter, pulling more inventory onto the market, said president and COO of Douglas Elliman Scott Durkin in a press release.
Even so, Brooklyn is selling at a record-setting pace, with 3,427 sales in the second quarter, up 21.4% from the first quarter, up 124.7% from the same time last year, and up 33.81% since the second quarter of 2019.
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Factors Affecting House Demolition Pricing
Costing $5-$15 per square foot on average, there are a number of things that affect the cost of house demolition.
Common factors that influence the total cost of house demolition include:
- Size of the home.
- Location and accessibility of the home.
- Demolition method used.
- Whether or not hazardous materials are present.
- Whether or not foundation needs to be removed as well.
- Who you hire to do the work.
For example, if your home is located in a city with a high cost of living and high waste disposal fees, you can expect to pay more to have it demolished and removed than someone who lives in a town with low disposal fees and a low cost of living.
Similarly, if your home is large and made of brick, your demolition will cost more than it would to demolish an a smaller home made of wood and aluminum siding.
This not only ensures you pay a fair price but also allows you to choose the best contractor for the job, not just the cheapest.
Cost Of Transportation In New York
After housing, the number one expense for most Americans is transportation. For car owners, thats the cost of buying, maintaining, insuring, fueling and storing their vehicle. If you use public transit, youll be on the hook for a transit pass, and possibly parking, if you need to drive to pick up the bus or train.
For car owners in New York, parking will be a significant expense. According to a 2017 study by Parkopedia, New York has the most expensive long-term parking in the world. The report states that in New York City, youll pay $606.37 a month to park. Parking in Washington, D.C. costs less than half that per month. As you get into the further reaches of Queens and Brooklyn, you will likely encounter slightly cheaper prices. Regardless of what borough you live in, though, expect to spend a lot to park your car.
In addition to parking, the price of gas in New York is often higher than the national average. GasBuddy data from May 2019 has a gallon of gas in New York City going for $3.08, which is almost 20 cents higher than the $2.89 U.S. average. Insurance isnt cheap either. According to CarInsurance.com, the average insurance rate for drivers in Manhattan tops $4,400 per year.
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Ny State Transfer Tax
The New York State Transfer Tax is 0.4% for sales below $3 million and 0.65% for sales of $3 million or more. The higher rate of 0.65% kicks-in at a lower threshold of $2 million for commercial transactions and residential properties with 4 or more units. Prior to the New York Tax Law amendments in 2019, the NYS Transfer Tax was previously a fixed 0.4% regardless of the sale price. The New York State Transfer Tax is authorized by New York Consolidated Laws, Tax Law TAX § 1402.
An Overview Of Nyc Rental Market
In the latest Douglas Elliman report, the high leasing volume continued to push prices up in September 2021. The increasing new lease contracts in New York City are helping to slow annual rental price declines. The rental prices are nearing their pre-pandemic level.
Manhattan’s discounts are attracting tons of renters. The surge of new lease signings in Manhattan slowed as landlord discounts dwindled. Net effective median rent increased year-on-year but fell short of 2019. For the 12th month in a row, new lease signings increased year over year, but at a slower pace. This is the lowest rate in nearly four years for new leases with landlord concessions.
Doorman median rent has risen considerably recently, whereas non-doorman median rent has fallen. While existing median rent stayed steady, new development median rent increased. New leases over $10,000 per month saw their highest market share ever. Luxury listing inventory fell by half in the year to its lowest level since 2015.
New lease signings in Brooklyn have continued to rise sharply. The increase in new lease signings year over year in Brooklyn was the highest for September since 2008. For two of the last three months, net effective median rent increased month over month. The market share of new lease signings for studios and one-bedroom apartments increased year over year, owing to the available discounts.
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Nyc Real Estate Market Forecast 2022
Many industry experts have been predicting a strong property appreciation in New York in 2021. 2021 is going to be a great one for property owners as the state still faces a long recovery ahead. With the relaxation of COVID-19 policies, different economic sectors have opened up in different ways and at varying paces. According to existing trends, the New York housing market will be extremely active throughout the peak home-buying season.
What are the New York City real estate market predictions for 2022? New York City has a track record of being one of the best long-term real estate investments in the U.S. The New York real estate market has been booming year over year. NYC home prices nearly doubled in the 2010s. With supply and demand continuing to favor sellers, prices continue to rise year over year.
According to Curbed by Miller Samuel/Douglas Elliman, the median home sale price for all of New York City in the first quarter of 2010 was $383,699. Prices started rising in 2013 and by the end of 2018, that number had almost doubled to $658,000. 2018 was the sixth consecutive year of home price gains in New York City. The real estate market was already cooling off and the pandemic has further slowed it down after NYC became its epicenter.
The chart below, created by Zillow, shows the growth of median home values since 2012 and their forecast until Dec 2022.
Will I Get Into A Bidding War
Bidding wars arent as common as they used to be, says Geller. A few high-end trophy properties may still see major bidding wars, but for the most part, bidding wars are on the decline, especially in Manhattan.
If you do, however, find yourself in a bidding war, there are different ways to come out on top. One of the key factors for success is knowing the neighborhood youre buying in, and then potentially offering more than the asking price based on comps . Other factors, like being flexible about your closing date and your move-in date, can give you a leg up. A good old-fashioned personalized letter to the seller cant hurt, especially if the seller is a long-term owner or is invested in the property.
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Miscellaneous Goods And Services
Miscellaneous costs refer to a wide range of goods and services including things like common restaurant foods, clothing, entertainment, activities and personal care. In New York, these costs range from 2% lower than the national average in Buffalo, to 36% higher in Manhattan.16
Rochester returns to represent most New York State cities for miscellaneous costs, which is 6% higher than the national average. In Rochester, you can order a pizza for $12, get a haircut for $19, and buy a shirt for $37. For reference, those prices are $10, $18 and $32 for the average U.S. city.17 But if you want the original Garbage Plate for dinner, youll have to go to Rochester to get Nick Tahous.
Housing Costs In New York
Okay, lets start with housing costs. In July 2020, median home prices in New York were $527,000about 51% higher than the national median of $349,000!2 Meanwhile, the median monthly rent for a two-bedroom apartment was nearly 29% higher than the national median of $1,200.3
With prices like those, you might have second thoughts about quitting your job to start an acting career on Broadway. But remember, New York State is bigger than Manhattan, where total housing cost factors are 430% higher than the national averageyikes! In fact, the north central area of Syracuse is actually 20% lower than the national average.4
To find the city in New York State that fits your budget, check out the cost differences between these cities:
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How Do Custom Home Pricing Trends Vary Throughout The Five Boroughs
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Online development publication New York YIMBYs 2021 Construction Report, covering residential permit filing data from 2020, shows a drop from 2019s application numbers. Trends for the Manhattan borough are consistent with its having reached its initial build-out nearly a century ago, now considered one of the most densely populated major urban areas in the nation. Filings for the borough were at a measly 86. Meanwhile, Queens records the highest number of filings of the five boroughs, at 552. Brooklyn comes in second at 498. For Staten Island, there were 429 filings, which included a large volume of single- and two-family homes and garages. The Bronx comes in fourth with 212 filings.
On the whole, New York City has grown to be more of a buying and renting market than a building one in terms of housing. NYC real estate resource StreetEasy and market and consumer data aggregator Statista report the following purchasing per square foottrends for each borough:
New York City Real Estate Highlightswhat’s Trending Now In The New York Market
Steals & Deals: 2-beds under $1.25M with fireplaces to satisfy Santa Claus MAG Partners celebrates topping out of first NYC project COOKFOX-designed rental to bring 480 mixed-income apts to Chelsea 10 newly-revealed developments ahead of the incoming Eric Adams administration The Wales brings to market rare Carnegie Hill condos that channel old New York 21 new listings with outdoor space to mark lengthening days and a countdown to spring Valuing the Homes of Harriet the Spy, Stuart Little & Other Children’s Book Characters 142 Watts Street: Forlorn 19th-century warehouse turned Tribeca mansion listed for $28.5M
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NYC Real Estate Pricing History Since 2003
Most expensive condos by price per square foot
I would give the greatest sunset in the world for one sign of New York’s Skyline. Particularly when one can’t see the details. Just the shapes. The shapes and the thoughts that made them
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