If you happen to read a newspaper or watch the news, you will read about those who are fleeing New York City. Unfortunately, these articles, whether from the near-tabloid-level drama of the NY Post these days, or even the more genteel Financial Times- each is rife with plenty of misprints and misinformation about just how bad the housing market is in New York City.
If you have been away, or simply don’t have me on speed dial, it is understandable why you might not be thinking about the opportunities to buy or rent in New York right now. So let’s fix this. We’ll hit on the Top 5 Reasons to move to New York City RIGHT NOW:
Prices are Down
This is the headline that generates the most excitement. The entire city has turned into It’s Sugar or Dylan’s Candy Store! While prices aren’t down 50%+ as the Financial Times has written, they are down 25% from the peak. What I mean is that if you were to have purchased in 2016, the same apartment, in many cases, is worth anywhere from 10-25% below that level. Units that need work, even more discounted. Yes, you can throw out exceptions- situations in which new development perhaps has been further discounted or has held up a little better- so I would always take these big statements of specific percentage discounts with a grain of salt. My firm’s most recent market inventory reports will show inventory picking up substantially year over year, and the time on the market also moving up. You don’t have to compromise to get your Dream Home.
Rents are Down
We are seeing rents down 20-25% from LAST YEAR, if you take into consideration that every landlord in the city is paying for the brokerage commisison. It is an entire sea change to the rental market. Given the time of year, now that the main summer season is past, if you’re looking for larger apartments, you can negotiate further. I could dance on the table and get you excited with the worse moves you’ve ever seen (that’s of course not true, my moves are excellent), and if you get on a zoom call with me, we can discuss just how great the rental prices are right now.
Sell High, Buy Low
For years, suburban sales have been languishing. Since tax changes at the end of 2017 both limited State and Local Tax (SALT) deductions from Federal Taxes, and capped Real Estate Tax deductions to $10,000, this has especially been the case.
Now, with prices in the suburbs up 25% or more in the past six months, if you’re looking to make a move into (or BACK INTO) the city, you can Sell High, and Buy Low! I could write a much longer piece about the questionable case for suburban real estate, but right now, whether you bought a few years ago and simply don’t love where you are, or are an empty nester and ready to get back in- Hold your breath, know that in just a few months there will be a vaccine, and get looking in the city. Oh, and enjoy having multiple bids on your house!
New York City is Vibrant
Whether you get to take advantage of Uber, Lyft, Via, Fresh Direct, Amazon, outdoor dining, tons of culture, ALL OF IT. There has never been an easier time to live in New York City. I know, there are all the zombies around, but I promise it’s overblown. Instead, remember that you don’t need a car every day. You don’t need to shlep anymore. You don’t need to overpay for a wrench on the corner. You can find a neighborhood you love. New York City is vibrant, now, and will be more so very soon.
NYC is about to Reinvent Itself
I’m delighted to say that I can’t predict what NYC will look like in the coming years, but I’m quite sure that we will discover green shoots, new ideas, new artists, new residents, new businesses, EVERYWHERE. New York has never stayed the same. New York will become new again, and you have the chance to be a part of it. Putting all of the low prices, low rents, low mortgage rates, all the facts to the side- New York is amazing, and there are apartments you would love here, and that are calling to you. Come be a part of the reawakening and revitalization of this unique place. -S