A recent real estate data analysis of the Big Apple by Realtor.com shows a growth in popularity among the city’s lesser-known neighborhoods and a downturn in some of the most favored.
The analysis, conducted by Miller Samuel co-founder Jonathan Miller, compared third-quarter residential sales between 2016 and 2017. Results revealed the once-famous neighborhoods of Greenwich Village and Soho are beginning to decline in sales. However, lesser-known neighborhoods such as those in Brooklyn, Queens, and the Bronx are on the rise.
“These markets are still very sought-after and in demand,” said Miller about NYC’s legendary neighborhoods. With this in mind, the downturn in sales is most likely the result of the city’s new construction developments over the last few years.
Yet Miller’s analysis revealed more than just a change in neighborhood popularity. It also revealed growing real estate trends in the nation’s concrete jungle. These trends include the influence of new luxe developments on the city’s lesser-known real estate and the rise in New York’s suburban hot spots.
The growing influence of new developments
Two of the most popular areas in New York City where people are moving according to recent real estate sales include Little Italy and the Flatiron District. New luxe developments in recent and upcoming years have made these neighborhoods surprisingly popular.
“Little Italy really only has room to grow,” said Daniel Neiditch, president of River 2 River Realty. “There’s a lot of new construction coming up.”
A seven-story condo building is planned for construction with its own history literally built into it. The Italian American Museum will be housed on the building’s ground floor.
Commercial and office buildings have also been converted into condos and one-bedroom apartments in the Flatiron District, making it the most expensive neighborhood in New York. According to Miller, the median price for a Flatiron District residence is currently $4.1 million.
The rise of suburban hot spots
More and more families are choosing to live in suburban neighborhoods just outside of New York City’s bustling urban area. For this reason, neighborhoods like Douglaston and Little Neck have seen an increase in residential sales this past year.
Located just along the border of Long Island and Northern Queens, these neighborhoods enable families to stay within city limits while also providing access to some of the area’s best schools.
This educational access gives suburban New York children a leg up in their future college careers. For instance, up to 18% of those who take AP Exams score highly and are able to earn an AP Scholar Award for college.
“Little Neck has very good schools,” said Toula Polios, a real estate broker. “That’s what brings people to this [neighborhood]. The next county over is Long Island, and their [property] taxes are higher.”
What’s more, new home buyers will often buy small lower-priced homes in the area only to tear them down and renovate them into larger homes. For instance, up to 76% of homeowners will renovate the style of their kitchen, 64% will make upgrades to their backyard, and others may even change the home’s gutter systems to copper for a vintage look without the rust.
In short, New Yorkers are building their dream homes outside the city but with easy commutes to Manhattan. “Buyers are in line waiting for something they can afford,” said Polios. “[Sometimes] you get four or five offers, sometimes more.”
New York is renowned for its neighborhood turnover and the persistent search for new housing in popular areas. However, this residential sales shift to lesser-known areas could mean the beginning of new culturally exciting and perhaps even more legendary New York hot spots.