Old Charm vs. New Appeal: What’s Driving Prices

While New York is still dominated by older housing stock—83% of all sales in the past year—newer homes (built after 2015) are commanding a significant premium, selling for 58% more than older inventory. Renovated homes that have been upgraded since 2015 generally track closer to older properties, but in some neighborhoods, the premiums can be dramatic.

This “newness premium” plays out differently across the city. In some neighborhoods, new construction and gut renovations reset pricing benchmarks; in others, newer product struggles to keep pace with long-established housing. What’s clear is that formerly overlooked areas are thriving after a decade of extraordinary growth.

Manhattan and Brooklyn illustrate the split most clearly. Manhattan recorded 21 of the 26 neighborhoods where newer homes sold for at least double the price of older ones—with some trading at more than 11 times the value. Renovated properties in the borough also commanded steep premiums, selling for nearly six times more in certain cases. In Brooklyn, neighborhoods like Brooklyn Heights saw newer inventory trading at four times the value of older stock, while others—such as Manhattan Beach and Ditmas Park—maintained a premium for older homes, underscoring that “new” doesn’t always equal “more.”

The question is whether this speaks to a broader shift in how New Yorkers value real estate. Consider Two Bridges: once overlooked, it has seen median prices soar 288% in the past decade, from $423,000 in 2014 to more than $1.6 million today.

Several forces are driving these trends: modern amenities, energy efficiency, contemporary design, and lower maintenance—all appealing to today’s buyers, who favor move-in-ready homes in neighborhoods with upside potential. At the same time, gentrification, infrastructure upgrades, and climate resilience investments have lifted entire areas, adding another layer of value. In short, whether through physical improvements or locational transformation, “newness” commands a premium.

Not every market has shared in the gains. Tudor City’s median home prices fell 17% over the past decade, while Soho and Flatiron each posted a 6% decline. These neighborhoods face a mix of constraints: strict preservation rules that limit new construction, smaller unit sizes that don’t align with today’s demand for larger living spaces, and shifting buyer interest toward areas offering new development with modern amenities.

For buyers, the lesson is clear—newer homes and emerging neighborhoods may offer exciting opportunities, but they come with tradeoffs in price and long-term affordability. For sellers, the story is all about timing and context—knowing when a neighborhood is on the upswing and when buyers are willing to pay a premium for “newness.” As New York continues to evolve, the interplay between history and modernity will remain one of the city’s defining dynamics in real estate.

Serj Markarian