Investing in New York City
REBNY Reports Record High Sales in Outer Boroughs
With all those mega high-rises going up in Manhattan and on the newly tapped waterfront areas, it’s easy to forget about New York City’s outer boroughs and the many neighborhoods throughout. We already know that places like Williamsburg and Long Island City are hot markets, but a recent report released by the Real Estate Board of New York (REBNY) shows that they aren’t the only popular neighborhoods. While Williamsburg and LIC are doubtlessly contributing to the popularity of Brooklyn and Queens, other areas have helped contribute to a 6-year high in home sales.
Senior vice president of REBNY, Michael Slattery, has said that the outer boroughs are becoming increasingly popular to buyers for their relative affordability. According to Slattery, it’s simply that "people are starting to find them. They look and get deterred in certain neighborhoods and they find something just as good or better in the next neighborhood.” That is, Manhattan is pricing people out and they are looking to Brooklyn and Queens instead. Buyers are flocking to and making it a contender against Manhattan once more as a magnet for buyers. In fact, the past year saw a 64% rise in sales in Brooklyn and Queens.
The neighborhoods with the highest sale activity are Bedford Stuyvesant and Park Slope in Brooklyn and Flushing and Jackson Heights in Queens. Slattery commented on Bed Stuy that had a lot of housing stock because "there are a lot of older homeowners who are now moving out and selling and it's perfect for the younger people who are looking on buying." These younger buyers drove up the average sale price in New York City to $806,000, which is a 3% jump from the same time last year. But Queens and Brooklyn have triumphantly led the city onwards, with some areas witnessing an average price increase of well over 100%.
Massey Knakal Realty Services, who also recently released some real estate findings, say that investors are looking to increase their presence in the outer boroughs following this jump in sales and value. is sure to continue as their prices soar for people eager to grab prime Brooklyn property. While Brooklyn and Queens prices are still dwarfed by Manhattan, REBNY’s recent report may signal a new era in New York real estate where Manhattan isn’t necessarily the unchallenged sovereign.