High 50 Most Costly NYC Neighborhoods Q3 2022
Key Takeaways:
- NYC median unchanged Y-o-Y for third consecutive quarter, gross sales tick down 4%
- Hudson Yards comes near $6 million median, TriBeCa surpasses $3.5 million
- 32 neighborhoods publish median sale costs of $1 million and above
- Manhattan claims six of prime 10 most costly neighborhoods
- Gross sales surge at sharpest fee in Queens’ Belle Harbor for 120% Y-o-Y enhance
- Brooklyn claims prime two value progress charges with Gowanus and Windsor Terrace
Throughout the U.S., concerns of a recession are growing, and most of the people is feeling the short rise of the price of residing. That, coupled with the additional elevating of the Fed’s benchmark fee has influenced a growing number of would-be homebuyers to drag out of the market or at the least step nearer to the sidelines, ready to see if actual property costs will drop because of diminished demand and financial volatility.
In the meantime, in New York City, gross sales exercise had but to indicate any indicators of a slowdown within the second quarter. The truth is, Q2 gross sales got here in 11% over Q2 2021 figures. Nevertheless, the third quarter closed with a 4% year-over-year (Y-o-Y) downtick within the variety of gross sales. Extra exactly, there have been 9,878 gross sales in Q3 2022, whereas Q3 2021 closed with 10,268 transactions, because the market readjusts after the homebuying frenzy of 2020 and 2021 artificially lifted costs.
Quarter-over-quarter, gross sales numbers had been really up by 636 transactions, reflecting the seasonality evident in 2021 as nicely, when Q3 gross sales surpassed the variety of offers closed in Q2. For now, Q3 figures haven’t proven any drastic adjustments in NYC developments, with extra seen market shifts prone to present up in This fall figures.
Moreover, town closed the third quarter at a $755,000 median sale value, unchanged in comparison with the identical interval final 12 months. Notably, this got here after the native median sale value ticked down 1% Y-o-Y in Q2, marking the primary quarter in two years that costs weren’t on the rise. To this point in 2022, NYC’s median sale value has but to shift quarter-over-quarter, posting the identical $755,000 median in each quarter sin e the beginning of the 12 months.
On the borough stage, solely Queens underwent a value contraction. Its median slipped 4% to $559,000, whereas Manhattan and Brooklyn skilled a cooling in gross sales exercise, coming in 8% and 5% under year-ago ranges, respectively. Notably, the Bronx was the one borough the place each gross sales exercise and the median sale value had been on the rise, rising by 8% and seven% Y-o-Y, respectively. That mentioned, the Bronx has but to put any neighborhood among the many metropolis’s 50 most costly.
Brooklyn Ranks 24 Neighborhoods in High 50 — Two Extra Than Manhattan
Of the 53 neighborhoods that posted the 50 highest median sale costs (the results of three ties), 33 neighborhoods recorded value positive aspects and 18 noticed costs pattern down. Furthermore, whereas the earlier quarter noticed 11 neighborhoods’ medians rise by 30% or extra year-over-year, in Q3, solely 4 NYC neighborhoods had been in an analogous place. Moreover, the sharpest fee of enhance was Gowanus’ 65% Y-o-Y value progress, versus Q2, when two neighborhoods recorded year-over-year positive aspects of greater than 100%.
Total, 32 neighborhoods posted medians of $1 million or extra — three fewer than throughout the identical timeframe final 12 months. Of those, 16 had been from Brooklyn, 14 had been from Manhattan and two had been from Queens. These numbers additionally replicate the neighborhood mixture of the highest 50 priciest neighborhoods, which consisted of 24 Brooklyn neighborhoods, 22 from Manhattan and 7 from Queens.
Notably, in Q3 2021, Queens had 11 entries among the many metropolis’s prime 50 richest neighborhoods. Primarily, which means the borough positioned one-third fewer neighborhoods among the many metropolis’s most costly this 12 months than final 12 months.
Nevertheless, town’s richest neighborhoods nonetheless confirmed largely constructive developments, as evidenced by the #50-priciest NYC neighborhood: Brooklyn’s Sea Gate claimed the final entry with an $858,000 median sale value this 12 months, whereas the Fiftieth-priciest NYC neighborhood in Q3 2021 was Brooklyn’s Clinton Hill at a $775,000 median.
On the different finish of the spectrum, 18 of the priciest NYC neighborhoods logged declines of their median sale costs, 11 of which had been in double-digit territory. Even so, the sharpest value drop, by far, was Fiske Terrace’s 45% Y-o-Y depreciation.
Discover the interactive map under for at-a-glance value and gross sales insights for NYC neighborhoods in Q3 2022:
In the meantime, gross sales exercise slowed in additional than half of town’s most unique areas: 27 of town’s prime 50 neighborhoods closed fewer gross sales in Q3 of this 12 months than they did in the identical interval in 2021, whereas 25 neighborhoods noticed their transactional exercise enhance. Among the many latter, gross sales greater than doubled in three areas in comparison with year-ago figures. In neighborhoods the place transactions slowed, gross sales dropped by greater than half in 4 areas, led by Hudson Sq.’s 73% Y-o-Y contraction.
Manhattan Claims 5 Most Costly NYC Neighborhoods in Q3
With a median sale value of $1.14 million and a 4% Y-o-Y enhance within the borough’s median, Manhattan remained the priciest of the 4 boroughs analyzed (as anticipated). And as is usually the case, Manhattan additionally claimed a lot of the metropolis’s 10 most costly neighborhoods (six), together with the 5 priciest. Nonetheless, Brooklyn got here in robust, incomes 4 positions.
On the prime of the record, Hudson Yards and TriBeCa maintained their locations as the most costly neighborhoods, with each remaining within the $3 million and above value vary. Nevertheless, Hudson Sq. overtook SoHo to turn into the third-most costly NYC neighborhood, whereas SoHo slid to #4.
In robust trend, Hudson Yards remained the #1 most costly NYC neighborhood. Its median sale value rose 34% Y-o-Y — the fourth-sharpest enhance among the many metropolis’s main neighborhoods — to achieve $5,852,000. Hudson Yards’ median enhance was influenced by a 40% enhance within the common measurement of condos bought within the neighborhood, which went from a 1,920-square-foot common in Q3 2021 to 2,693 sq. toes in Q3 2022.
Moreover, most gross sales in Q3 had been recorded at 35 Hudson Yards, whereas 15 Hudson Yards claimed essentially the most offers in Q3 2021. On the similar time, gross sales exercise accelerated by 33% within the neighborhood, though it have to be famous that this was the results of a rise from 9 gross sales in Q3 2021 to 12 complete in Q3 2022.
To not be outdone, TriBeCa remained the #2 priciest NYC neighborhood — regardless of a mere 5% Y-o-Y enhance in its median sale value that lifted it to $3,515,000. Nevertheless, gross sales right here remained nearly unchanged, with TriBeCa closing 100 gross sales throughout Q3 of this 12 months, which was only one greater than in Q3 2021.
Not like previous quarters, TriBeCa was not adopted by SoHo at #3, however reasonably by Hudson Sq.. This was the results of the latter’s 36% Y-o-Y median sale value positive aspects coupled with SoHo’s 17% pricing slip. Particularly, Hudson Sq.’s rise was partly the results of six gross sales at 565 Broome St. with a $6,740,000 median sale value. Plus, Hudson Sq.’s value enhance was additionally the third sharpest among the many 50 priciest NYC neighborhoods.
By way of transactional exercise, Hudson Square closed practically three-quarters fewer gross sales than it did in Q3 2021, marking the sharpest slowdown in transactional exercise amongst NYC’s 50 richest neighborhoods at -73% Y-o-Y. On the similar time, gross sales rose by practically one-quarter in SoHo.
In the meantime, coming in at #7 with a median of $1,791,000, Brooklyn’s Gowanus underwent a 65% Y-o-Y value enhance to say the sharpest value progress fee among the many metropolis’s prime neighborhoods. Cobble Hill claimed the fifth-largest enhance. Its median rose 29% year-over-year to achieve $1,755,000 and turn into the #9 most costly NYC neighborhood in Q3.
Notably, Manhattan’s Little Italy and Battery Park Metropolis had been absent from town’s 10 priciest neighborhoods resulting from sharp drops of their medians: Little Italy fell from #4 final 12 months to #11 this 12 months. Its median sale value contracted 41% Y-o-Y after Q3 2021 figures had been lifted by half of that quarter’s gross sales closing at 185 Grant St. with a $1,445,000 median. Equally, Battery Park City slipped from #8 to #19 following a 26% Y-o-Y median sale value lower, which was influenced by a 23% lower within the common measurement of apartment items bought there.
Even so, gross sales surged 116% in Battery Park Metropolis, marking the second-fastest acceleration in transactional exercise among the many metropolis’s main neighborhoods. On the similar time, Battery Park Metropolis and Little Italy had the third- and second-sharpest median sale value contractions, respectively, among the many metropolis’s richest neighborhoods. Chinatown had the fourth sharpest after its median decreased 24% year-over-year.
Brooklyn Residence to Three of the 5 Highest Worth Fee Enhances
Whereas Manhattan’s median sale value climbed 4% Y-o-Y, Brooklyn’s median ticked up simply 1% Y-o-Y, going from $810,000 to $815,000. But, regardless of the borough’s stalling value developments, it nonetheless managed to say 4 of town’s priciest neighborhoods. Right here, Carroll Gardens took the lead at #6 with a $1.81 million median following a 13% Y-o-Y value enhance.
Gowanus was subsequent for Brooklyn, touchdown at #7 with a $1,791,000 median following essentially the most vital fee of value progress among the many metropolis’s prime 50 neighborhoods. It was adopted by DUMBO at #8 with a median of $1,775,000 after a 2% value contraction that moved it two positions decrease in comparison with Q3 2021.
Conversely, Cobble Hill rose from #13 final 12 months to land at #9 in Q3 2022, because of a 29% enhance in its year-over-year median sale value. Not solely did that enhance increase its median to $1,755,000, but it surely was additionally the fifth-sharpest value appreciation among the many metropolis’s main neighborhoods. This was partly resulting from a change within the mixture of asset varieties that had been bought, with co-ops making up 25% of the neighborhood’s offers, versus 34% throughout the identical timeframe in 2021.
Brooklyn additionally claimed the sharpest value contraction with Fiske Terrace, which noticed its median drop by 45% to stabilize at $905,000. That’s a far cry from the $1.65 million median it posted final 12 months, which positioned it because the #9-priciest space in NYC. Right here once more, the pricing lower that took Fiske Terrace all the way in which all the way down to #45 was influenced by a change within the mixture of properties bought: Whereas 80% of offers in Q3 of final 12 months had been properties, that ratio dropped to 37% in Q3 of this 12 months.
Nevertheless, Fisk Terrace additionally logged the fifth-sharpest enhance in transactional exercise, closing 70% extra offers in comparison with year-ago figures. Brooklyn additionally claimed the third-largest gross sales acceleration with Clinton Hill, which noticed its transactional exercise rise by 108% to achieve 102 offers. This was partially influenced by 20 gross sales at 10 Quincy St.
On the different finish of the spectrum, Brooklyn was additionally residence to 3 of the 5 neighborhoods the place transactional exercise declined essentially the most: First, Bergen Beach closed 62% fewer gross sales in comparison with Q3 2021 to mark the second-largest lower in gross sales, proper behind Hudson Sq.. Particularly, Bergen Seashore closed simply 5 offers at a $945,000 median.
Likewise, gross sales dropped by 55% in Prospect Park South, tying with Queens’ Hunters Point for the third-most vital slowdown in gross sales exercise. Greenwood Heights was fourth in gross sales drops, coming in 43% under final 12 months’s gross sales figures.
Queens Claims Sharpest Gross sales Acceleration with Belle Harbor’s 120% Surge
Represented by seven neighborhoods among the many metropolis’s 50 most costly, Queens’ median sale value contracted 4% Y-o-Y to stabilize at $559,000, whereas gross sales ticked up 2%. As is usually the case, the richest neighborhoods from Queens positioned within the backside half of our rating.
Particularly, Ditmars-Steinway was the borough’s priciest location at $1,129,000 with an 18% Y-o-Y value enhance. Nevertheless, gross sales exercise fell by 33% right here, making it one among three Queens neighborhoods among the many metropolis’s priciest that closed fewer gross sales in Q3 of this 12 months than it did in Q3 final 12 months. Equally, gross sales had been greater than halved in Hunters Level, with 55% fewer offers closed right here. Its median additionally ticked down 1% to $1,055,000.
Queens’ remaining neighborhoods in our rating posted medians under $1 million, with Belle Harbor simply $1,000 shy of that benchmark. And though Queens’ #3 most costly neighborhood underwent a 13% Y-o-Y value contraction, gross sales surged 120% for the sharpest acceleration of gross sales among the many 50 richest neighborhoods in NYC.
For extra info, discover New York Metropolis’s 50 most costly neighborhoods in Q3 2022 within the interactive desk under:
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NYC coworking and office additionally leads by way of workplace market share, with 4.6% of Brooklyn and three.1% of Manhattan workplace area designated as coworking. Miami coworking makes up 3% of the native workplace market and Nashville coworking takes up 2.4% of town’s workplace area. Though NYC may need essentially the most flex area within the Northeast, coworking in Philadelphia has had a presence for the reason that early aughts, whereas Boston coworking advantages from its wealthy life sciences sector.
Methodology
Median sale costs had been calculated based mostly on closed residential property gross sales recorded in ACRIS between July 1 and October 7, 2021, and July 1 and October 7, 2022. Residential asset varieties included single household properties, condos and co-ops. Package deal offers had been excluded.
Median sale costs had been calculated just for neighborhoods that recorded at the least 5 gross sales between July 1 and October 7, 2022. 12 months-over-year adjustments in median sale costs or the variety of gross sales had been calculated just for neighborhoods that additionally recorded a minimal of 5 gross sales between July 1 and October 7, 2022. Moreover, median sale costs had been rounded to the closest $1,000.
The boundaries of some Manhattan neighborhoods might range, as information on a number of small neighborhoods is included within the statistics for bigger areas. For instance, Central Park South is included within the Theatre District-Occasions Sq. space; NoLita is included in Little Italy; NoHo is included in Greenwich Village; and Carnegie Hill, Lenox Hill and Yorkville are all included within the Higher East Facet.
