Among all the capital markets of the United States of America, property for sale in New York is the world’s most expensive. According to some reports, the local housing market is estimated at $3.51 trillion (¥22.3 trillion). To compare this, in Los Angeles, this figure is $3.27 trillion (¥20.7 trillion). You can learn more about the features and prospects of the New York market and what the cost of housing in New York will be in 2022 in this article.
- The current market
- Dynamics of real estate prices in New York after the crisis
- Trends and forecasts
- Prices in New York’s most popular areas
- Forecasts for 2022-2023
- We’ll help you buy real estate in New York
The current market
As of February 2022, New York’s real estate market showed no signs of slowing down in development. Consumer demand has reached new levels because of changes in housing needs and preferences that the pandemic caused. According to the New York State Association of Realtors, the number of properties on the market was unchanged as sellers weren’t active enough to meet demands.
The average price of real estate in New York reached $400,000 (¥2,599,000) per housing unit. This is 12.7% more than in February 2021. Construction continued during the pandemic but it was significantly reduced because of a shortage of materials, labor and rising costs of building materials.
Sellers who worked in 2020 strengthened their positions in 2021. The number of vacant properties for sale stayed low. So, the cost of apartments in New York increased significantly.
Dynamics of real estate prices in New York after the crisis
- Despite the pandemic, in 2021, the average selling price of real estate in the metropolis increased by 19.4% compared to 2020 ‒ up to $370,000 (¥2,350,000).
- The number of completed transactions in 2021 increased by 17.2%. A total of 153,110 housing units were sold during the year.
- Sellers received an average of 100.7% of the original sale price - 2.3% more than a year earlier.
- Compared to 2020, in 2021, the number of houses for sale decreased by 30.4%.
- At the end of 2021, there were 30,655 sales announcements.
- The number of new ads for housing sales dropped by 0.2% and at the end of the year was 192,214 units.
New York was badly affected by COVID-19 among many US cities, with the highest job loss among the country's major megacities. Now the situation is improving quickly.
A shortage of inventory and high consumer demand continued to drive up housing prices, with many purchase offers for a limited number of properties. This was common in most of the market. The upward trend in demand seen over the past 18 months is expected to continue in 2022. This will lead to higher housing prices. Although an increase in mortgage rates during the year is inevitable, the cost of housing will still be acceptable to most buyers.
Trends and forecasts
As a result of the pandemic, people moved to the suburbs, which led to higher housing prices in these areas. On the other hand, those who stayed in the city found better options for less money. The supply of housing in some districts exceeded the demand from home buyers. In these areas, this influences price negotiations.
Here are the current housing prices in New York:
- In February 2022, houses in New York cost an average of $850,000 (¥5,400,000).
- The average cost of properties in the city center is $9,791 (¥62,311) per sq. m2. The average cost of properties on the outskirts of the city is $5,118 (¥32,571) per sq. m2.
- The average sale price is $805,000 (¥5,120,000).
Prices in New York’s most popular areas
- TriBeCa is the most expensive district in the average real estate price, which is $4,000,000 (¥25,400,000).
- The average cost of real estate in Riverdale is $364,500 (¥2,300,000), which makes it the least expensive area in New York.
- The average sale price of a housing unit in Manhattan in February was $1,300,000 (¥8,270,000), which is 17.2% more than last year.
Forecasts for 2022-2023
According to analysts, the demand for rental housing won’t return to the pre-pandemic level after employees who left the city in the lockdown come back. This is about 500,000 jobs. But, it may take much longer to restore the workforce than to vaccinate the population.
Rents will fall as inventory surpluses increase until the number of tenants coming back to the city exceeds the number of properties on the market. Delayed demand driven by low mortgage rates will continue in the housing market in 2022 so New York’s housing forecasts remain positive for the coming months.
After the pandemic finally subsides in 2022, the shortage will again put pressure on the cost of buying real estate and renting apartments in all 4 boroughs of New York. For sellers, this is the right time to sell.
For buyers, mortgage rates are now the lowest and have stayed at this level since February 2022. The average monthly fixed rate on a 30-year mortgage increased slightly ‒ from 3.07% in November to 3.10% in December 2021. If you’re planning to invest in real estate, now is the right time. You can buy an apartment in New York at a low price until more experienced investors have sorted out these offers.
We’ll help you buy real estate in New York
You can find the current prices for apartments in New York in 2022 on the website New-York.Realestate. Our experts will advise you on how to rent, buy or sell a property in the USA and help you profitably and safely buy a house in New York.