A Pinch and A Squeeze: Will Fewer New Luxury Condo Buildings in Manhattan Lead to a Rise in Condo Prices?

Rising prices in New York's luxury condo marketAnyone who has spent any time wandering around Manhattan's former real estate hot spots over the past year has probably noticed the relative dearth of new construction residential projects, but people notice a lot of things wandering around Manhattan. But while there's no hard data proving that everyone on the Upper East Side owns a tiny dog, say, the where-have-all-the-new-construction-condos observation turns out to be right on. New York City issued a whopping 82 percent fewer new residential building permits in 2009 than in 2008, and over 50 percent fewer than were issued in any other year over the last decade. The near-total stop in new residential construction makes some sense, given the economy's difficulties over the past year, but it's worth wondering whether the slowdown in construction could lead to a tighter market for NYC condos -- and thus to more expensive NYC condos. In The Real Deal, Candace Taylor reports that some Manhattan neighborhoods -- from Tribeca to the Upper West Side -- are already Midtown, the Financial District and Williamsburg," Taylor writes. "But brokers say that months of busy sales activity (combined with some sellers taking their units off the market) is creating a shortage of inventory in some hot spots... In some neighborhoods, buyers are increasingly frustrated because they can't find the type of apartment -- often resale condos or prewar co-ops -- they want." Maybe those buyers should be looking on a better website? Maybe they should click here? Obviously searching for a new condo on New Construction Manhattan is not the only answer to the ongoing inventory squeeze for NYC condos, but we've got to try something! (In all seriousness: we'll obviously be keeping an eye on this)

NYC Daily Real Estate Blog