The Spring season is officially underway and the NYC residential market remains “robust”, both in sales and rentals—as we head into the second quarter next week and as was forecasted at the start of this year by Jonathan Miller, CEO and President of Miller Samuel.
Sales activity in the luxury market shows no sign of slowing down. There were 35 contracts signed last week for homes $4 million and up in Manhattan last week. Demand remains strong with buyers trying to lock-in pricing before it increases further, given the steady uprise pattern over the past year.
Unfortunately for people looking to rent, it may be a little too late to lock in a reasonable rate. We’re seeing rental rates surge with astronomical increases as high as 43%, with the average increase in Manhattan falling in the ballpark of 30%. This has resulted in bidding wars on rental units and even has some would-be renters considering buying, as a safer and more reasonable alternative.
The bottom line is people are returning to NYC, as well as other urban cities in the country, now that we seem to have gotten past the worst of the pandemic. While the suburbs were where people went to shelter at the height of COVID, most everyone who left is eager to return to the city as things normalize. The mask mandate has been lifted and offices are now or soon will be requiring employees to return to work in-person.
This is an exciting time for NYC real estate and a testament to what I’ve said again and again … Our wonderful city always manages to rebound no matter what the circumstances. Why? Because there is no other city like it in the world, and everyone “wants to be a part of it”.