New York’s worst real estate

Why New York real estate is the worst

New York’s real estate is the worst . So we start our daily article, with a news that makes you think, but intrigues at the same time. Why is the New York real estate market going so badly? What are the problems that are affecting New York’s real estate?
First, you need to understand how much the actual damage amounts to. In the third quarter of 2019, sales volumes fell by 12%. The worst decline since 2009.

The data, were reported by the Financial Times, which sees the average prices of Manhattan below $ 999,000. Below one million dollars after four years. What is the reason for this dramatic decline?

New York's worst real estate

Price collapse: the reasons

The main reason for the fall in prices in New York is the new tax introduced. This tax did not affect the majority of citizens. The luxury market, of course. It is precisely this segment that is experiencing moments of fatigue. And that is not all, it seems that the situation is not destined to improve. The forecasts, in fact, state that prices are destined to fall further.

Luxury in crisis: details

The ultra luxury of Manhattan is represented by the line of skyscrapers near the 57th street. Precisely in the southern part of Central Park. In this area, we are talking about 20% of unsold apartments. This is really worrying considering that the actual sales started in 2011.
On the whole Billionaire Row, also because of the fact that in some cases, prices have reached exorbitant levels ($ 100,000 per square meter in some cases). Here, too, the unsold is equal to 40% of the units available.
To have a more concrete idea, just think that of the 16,000 apartments built from 2013 until today, about 25% of luxury properties, are still available in the New York real estate market.

What is expected?

The future of real estate in New York does not seem to be so rosy. In fact, it seems that the crisis will continue to affect the Big Apple. The trend, according to the main statistical surveys, will be that of stagnation. As the volumes of potential sales will not be enough to allow New York to re-emerge as it once was.
While the general distrust of the real estate market seems to have faded, there is still an underlying inability to access the real estate market. On the one hand, lower prices. On the other hand, prices are rising due to excessive taxation. In short, an imbalance that does not like the New Yorkers (and even potential foreign buyers).


We just have to wait. As always, we recommend that you stay up to date on our blog!


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