Real Estate News

Changes could affect New York real estate

Published: 26 Jan 2017

The state of both commercial and residential real estate ion New York could change soon, according to multiple sources. Luxury buyers in particular will have much to consider as they evaluate properties in the Empire State. Several factors show the differences in local buying conditions and what the impact of the recent development has been.

Lower sales in the Hamptons
Dropping median sales prices for residences in this area have signaled a possible new market to be aware of. The Real Deal spoke to Jonathan Miller of the firm Miller Samuel, who explained that the recent drop in both sales numbers and prices for the Hamptons is similarly seen in other New York markets. At the same time, he also noted that there's a surplus of existing inventory to work through.

The Wall Street Journal also commented on recent findings, saying that the prices for both Nassau County and Long Island in general increased year-over-year. However, sales activity was stronger in the market of North Fork, in particular, showing that not all sections of the same region had comparable trends.

Nearshoring moving employees away
Wall Street may be an important place for financial workers to be, but some businesses are relocating workers far from the Big Apple. Bloomberg reported on the way banks are pushing operations to cities like Jacksonville, Florida, and Salt Lake City, Utah.

Though this has the effect of relocating citizens, there's also the business incentive involved, since it could be cheaper to live outside of the famously expensive New York City area. And a big factor is also the drive to keep these jobs within the U.S., the source said, as companies try to avoid fully outsourcing to other countries.

If this trend is widespread enough, it could change the makeup of some of these other communities as they become home to relocated workers looking for affordable homes. In a way, both the employees and the companies are apparently looking for similar things.

New alternate living situations are arising in NYC
Back in New York City itself, though, residents are still finding strategies to fight the rising costs in their own way. One of these is the use of co-living spaces, which seem to be one possible answer to the problems of overcrowding and apartment scarcity.

DNAinfo explained the concept and spoke to Brad Hargreaves, the co-founder of the company Common. The idea behind the company's buildings is a cross between individual furnished apartments and shared spaces, with more incentive to meet and communicate with other residents on the same floor.

Hargreaves told the source that his company's goal is to respond to those residents who have concerns about living with roommates, while also appealing to those who want a social experience.

"There are plenty of buildings out there where you can have your private space and you can be anonymous in the elevator and that's totally fine," he said. "But we want to create something that's different and something that does appeal to people who want community."

Another sign of the relevance of this living style is its appearance around the world. Dezeen recently wrote about different shared houses in areas from Spain to Japan. One of the buildings mentioned in the source, WeLive, is also based in New York City and converted from office space. Like the Common project, residents here also get certain amenities paid for in advance, offering further enticement to move in.

Though it's obviously still early in the year, these conditions set the tone for the current tone of real estate in New York and could dictate subsequent patterns later on.