What should we expect to see in the real estate world this coming year? Whether you’re a renter, a buyer, or just an avid real estate junkie, you want to stay abreast of all the 2017 trends. Goldfarb Properties put together a handy list of the projected real estate trends for NYC in 2017 so you can stay ahead in the game.
Expect interest rates to climb.
The Federal Reserve raised interest rates for the first time in 2016 on December 14th of last year, so it’s likely we will see them continue to climb in the next year. Mortgage rates will likely increase as well. This could lead to a narrowing of the gap between asking price and bidding price on properties. Buying power, though, will decrease though and lead to more people renting that would otherwise considering buying.
People will be migrating between the different boroughs.
There won’t be any pattern in this migration though. Luxury buildings are popping up all over the place. As prices skyrocket in neighborhoods like Long Island City and Williamsburg, some residents may be heading back to Manhattan for more affordable rents. People will be looking at a wide variety of neighborhoods, looking to get the biggest bang for their buck.
Rentals will be converted to condos by developers.
As competition spikes, developers are rethinking rentals. In Long Island City alone, 9,000 new units are expected in 2017. In Brooklyn, another 5,000 are expected. Rather than lower prices to compete, developers will consider converting their buildings to condos.
Upper East Side will be in high demand thanks to the Second Avenue subway.
Now that the Second Avenue subway is up and running, spring rental season will be hectic. The demand for the area east of Third Avenue will spike now that it’s no longer out of the way. Both renters and buyers will be scoping out the area in droves.
South Williamsburg will be in high demand.
With the 18-month shutdown of the L train between Brooklyn and Manhattan projected for 2019, Brooklynites will begin to check out South Williamsburg. Its proximity to the J, M, Z trains at Marcy Avenue and the action of Williamsburg proper makes it an incredibly desirable neighborhood. New developments are popping up, boasting amenities like roof decks and gardens. It’s a great time to buy in Williamsburg as well, as the prices begin to dip in the area but will spike again after the L resumes service.
Astoria will also be in high demand.
Many Manhattan and Brooklyn residents are beginning to migrate to Astoria, as the waterfront becomes more built up. Luxury living here is more affordable than the Brooklyn or Manhattan waterfront and still offers upscale amenities like heated floors and terraces with outdoor showers. Astoria is also more accessible than ever with ferry service expecting to launch this spring and the W train returning.
Buildings will began to offer more experience-based amenities.
Millennials are putting more value on experiences and lifestyle rather than material offerings, which is changing the luxury building landscape. Because of this, you will begin to see a focus on building-wide programs like yoga nights, potlucks, movie screenings, and Monday Night Football events. There’s a bigger desire for community than ever before and amenities will begin to reflect that.
There will be an influx of sustainable affordable housing.
We will see an increase in more affordable housing because of De Blasio’s Mandatory Inclusionary Housing program. Some neighborhoods that have been targeted for this are The Bronx along Jerome Avenue, East Harlem, and East New York in Brooklyn. Along with this, affordable housing developers are choosing to be more sustainable with their construction. As nonprofits and sustainability advocates partner with these developers, energy efficiency is becoming more popular since it keeps their operating costs down.