NEW YORK, Dec. 21, 2016 /PRNewswire/ -- The Manhattan sales market will hit the reset
button in 2017, with price growth slowing throughout the borough
after months of declines in the luxury segment. Brooklyn and Queens' sales markets will see slower paces of
growth as well, with the Bronx
projected to see sales prices decline in 2017i.
As the sales market slows and rents continue to rise, more New
Yorkers will become homeowners in the coming year. Transportation
shake-ups are anticipated around the city, including the temporary
closure of the L-train and the long-awaited opening of the Second
Avenue subway. These changes will transform neighborhoods' public
transportation availability, playing an integral role in renters'
and buyers' moving decisions over the next year.
According to the StreetEasy Hot Market Index, Kingsbridge in the
Bronx will be the hottest
neighborhood of 2017, but Brooklyn
neighborhoods dominate the rest of the listii.
StreetEasy's 2017 Predictions
- Manhattan sales market will
recalibrate. Manhattan's
median resale price will have the slowest growth of all boroughs as
oversupply in the luxury tier weighs down the market. The
Bronx will be the only borough
where resale prices will decline, falling 1.4 percent over the next
12 months.
- Little relief for NYC renters. Median rents are expected
to rise across all boroughs and continue to outpace income growth
in the coming year. Shrinking tipping points – the number of years
it takes for buying to make more financial sense than renting - and
rising rents will drive prospective buyers to evaluate
homeownership.
- Transportation – or the lack thereof – will transform
neighborhoods. Neighborhoods where transit options are being
added – like Yorkville and Hudson
Yards – and neighborhoods where transit is temporarily halting –
like Williamsburg's L-train – will receive an influx of interest as
New Yorkers seek either a more convenient commute or a
bargain.
- Bronx's Kingsbridge tops
StreetEasy's 2017 hottest neighborhoods list. According to the
StreetEasy Hot Market Index, which ranks the city's neighborhoods
using a series of key performance indicators, Kingsbridge came out
on top. Brooklyn neighborhoods
dominated the list, occupying six out of the 10 spots.
Statement from Krishna Rao,
StreetEasy Economist:
"For Manhattan buyers, 2017
will be a year of increasingly slower price growth, as the market
recalibrates after years of luxury inventory overload. On the
rentals side, affordability will decline even further. We expect to
see more people who have saved for a down payment – especially
millennials and other first-time buyers – taking advantage of a
slowing sales market and moving quickly to buy a home in the face
of an impending mortgage rate increase. Especially for those who
plan to live in an apartment for more than a few years, the
investment could pay off sooner than it has in the past.
"Transportation will be top of mind for apartment hunters next
year. Expect heightened competition in previously less accessible
areas of Manhattan, as
neighborhoods such as Yorkville
and Hudson Yards enter the spotlight.
"This year's list of hot neighborhoods is all about trade-offs
New Yorkers are willing to make, whether that means extending your
search by one neighborhood in exchange for a nearby park or
waterfront views, or extending your commute to find a relatively
affordable single-family home."
StreetEasy predicts 2017's hottest neighborhoods will be:
Ranking
|
Neighborhood
|
Borough
|
1
|
Kingsbridge
|
Bronx
|
2
|
Fort
Greene
|
Brooklyn
|
3
|
Bath Beach
|
Brooklyn
|
4
|
Prospect Lefferts
Gardens
|
Brooklyn
|
5
|
Bayside
|
Queens
|
6
|
Yorkville
|
Manhattan
|
7
|
Gowanus
|
Brooklyn
|
8
|
Prospect Park
South
|
Brooklyn
|
9
|
Boerum
Hill
|
Brooklyn
|
10
|
Astoria
|
Queens
|
View the full report with additional analysis here:
http://streeteasy.com/blog/2017-nyc-housing-predictions
About StreetEasy:
StreetEasy is New York City's leading local real estate
marketplace on mobile and the web, providing accurate and
comprehensive for-sale and for-rent listings from hundreds of real
estate brokerages throughout New York City and the
major NYC metropolitan area. StreetEasy adds layers of
proprietary data and useful search tools to help home shoppers and
real estate professionals navigate the complex real estate markets
within the five boroughs of New York City, as well
as Northern New Jersey and the Hamptons.
Launched in 2006, StreetEasy is based in the Flatiron
neighborhood of Manhattan. StreetEasy is owned and operated by
Zillow Group (NASDAQ: Z and ZG).
StreetEasy is a registered trademark of Zillow, Inc.
i Median resale price is forecast using the
StreetEasy Price Forecast, a 12-month projection of resale prices
derived from the StreetEasy Price Index. Median rent is forecast
using the StreetEasy Rent Forecast, a 12-month projection of rent
prices derived from the StreetEasy Rent Index. The StreetEasy Rent
Indices are calculated for Manhattan, Brooklyn, Queens, and the Bronx. Rent data for Staten Island is insufficient and is therefore
not included in this analysis. Full methodology for price and rent
forecasts here:
http://streeteasy.com/blog/methodology-streeteasy-price-indices-2/
ii We identified the hottest neighborhoods of 2016 using
the StreetEasy Hot Market Index, which takes into account four key
performance indicators: Annual change in sales price, annual change
in rent price, recent population growth and annual change in
StreetEasy page views per listing. Population growth is derived
from 2011 and 2014 Census ACS data.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/brooklyn-dominates-list-of-nycs-hottest-neighborhoods-in-2017-bronxs-kingsbridge-takes-top-spot-300382249.html
SOURCE StreetEasy