Tuesday, November 3, 2015, by Amy Plitt with Curbed NY
Despite the proliferation of new buildings and luxury condos throughout Manhattan, a new report by Crain’s reveals that the number of rental units on the island is astronomically higher than the number of units for sale. That’s not hyperbole: According to Crain’s, in Q1 of 2015, there were 850,000 apartments in Manhattan, but only 5,200—or 0.6 percent—were for sale; plus, 75 percent of the borough’s apartments are rental units. The piece breaks down why this is happening, and—spoiler!—the plethora of ultra-pricey apartments is playing a part in why inventory is so low, and prices are so high.
Because so few apartments are for sale at any given time, developers and landlords can charge a pretty penny for them—it’s that old rule of demand outpacing supply. The median sale price for a Manhattan apartment is close to topping $1 million, and it’s unlikely that it’ll go down anytime soon. But part of the problem is that it’s so expensive to build in Manhattan—from securing air rights to getting the materials to hiring construction crews—that it’s become difficult for developers to turn a profit. (“In 2014, the average cost of building an apartment was $585,370, three times what it was just seven years prior,” according to Crain’s.) That’s how the firms behind buildings like One57, 432 Park Avenue, or Central Park Tower are able to command such high prices—and they have the ultra-rich buyers who will shell out up to $100 million for an apartment.
But where does that leave those New Yorkers whose budgets are more modest? Sadly, they’re pretty much screwed: Even with Mayor de Blasio’s affordable housing push—which includes both sale and rental units—the number of cheaper apartments on the market isn’t likely to change anytime soon. And “the days of landlords converting waves of rental units into co-ops or condos have long passed,” according to Crain’s. Better start looking in the outer boroughs if you hope to buy in the city anytime soon—or stick with renting. (Not that it’s so simple to do that, especially when rental prices in Manhattan are rising fasterthan ever before.)
· Why are so few apartments for sale in Manhattan?
You’re probably like most New Yorkers- You think you have to spend minimum of $3m to have a decent home in the city. But I have great news: There are still amazing homes that are in the affordable price range, and you won’t have to settle for less.
This sun-filled home, located in NYC’s financial district, has the modern style and building amenities to fit your lifestyle. I know what you’re thinking- the financial district is boring, not much going on, blah blah blah. Think again.This neighborhood has access to everything! You’re next door neighbor is TriBeCa, and you’re a quick walk to SoHo. The TriBeCa effect is in full swing: NoBu is moving to town, and prices at The Beeckman Residences are skyrocketing so fast you’ll think you’re in TriBeCa. At the Beeckman Residences, located in Financial District’s city hall/fulton area, average prices are $3.7m, with price per sq ft at $2350. Wow! That’s not even in TriBeCa, that’s in the Financial District.
Here is a Financial District steal that I found for you- and it is glamorous with the bells and whistles associated with luxury condo living.
The steal- 15 william street
Size: 2 bed | 2 bath | 1325 sq ft
Price per sq ft: $1237
By Adrian Glick Kudler
Jay-Z and Beyoncé rented this newly-built house in Holmby Hills for about a month, “probably over the summer,” and now it’s mid-September and there arepregnancy rumors floating around. We’re not saying Blue Ivy’s little sibling was conceived in this glassy spec house, but Blue Ivy’s little sibling was almost definitely conceived in this glassy spec house. YOU HEARD THIS WILD AND IRRESPONSIBLE SPECULATION HERE FIRST. Anyway, ever-reliable Real Estalker reports that America’s most important couple paid about $200k to rent the house, which first hit the market in May asking $48 million, then hit the open market in July as its most expensive listing at $45 million. (It’s now the tenth most expensive house for sale in Los Angeles overall.)
The house, built by an Italian developer, comes with seven bedrooms, eight and a half bathrooms, an infinity pool, a wine cellar, a catering kitchen, a 75-foot-long gallery for art, two libraries, theater, tennis court, etc. etc. etc. Bey and Jay rescued the house from terminal uncoolness; the house until now has been best known for appearing on reality television (Million Dollar Listing) and attempting to impress potential buyers at a party with “a red Ferrari Berlinetta, women in little black dresses passing hot and cold hors d’oeuvres, a violinist, [and] a saxophone player.”