NYC Real Estate Tax Changes: What You Need to Know

We recently provided updates on the proposed Pied-a-terre tax that had the possibility of being passed in New York City. With the recent passing of the State budget, there has been changes to Real Estate Taxes in New York. Below is everything you need to know about the real estate tax changes as a result of the New York State budget.

Overview: The Pied-a-terre tax was not implemented. Instead, there is a newly revised and implemented Progressive Mansion Tax and Progressive Transfer Tax. This will impact those in the $2-$5M purchase range the most.

The Progressive Mansion Tax:

The new law applies to all closings that take place on or after July 1, 2019 except for those contracts that were entered into prior to April 1, 2019. This is specific to NYC contracts.

The new tax now has 8 tiers that have a higher Mansion Tax rate as purchase price escalates.

The Progressive Transfer Tax:

In addition to the Mansion Tax overhaul, effective April 1, 2019, the Transfer Tax also received an overhaul.

For Residential purchases over $3 million, the NYS Transfer Tax increases from its current rate of 0.4% to a rate of 0.65%.

Additionally, for Commercial transactions greater than $2 million, the NYS Transfer Tax will increase from its current rate of 0.4% to 0.65%.

What Does it Mean for Me?

While no tax increases on property would be ideal, the above could be make less of a blow than the Pied-a-terre tax. The pied-a-terre tax would have positioned New York City as being not investor friendly and was also an annual charge -i.e. the property owner would have incurred this tax every year for owning the pied-a-terre.

As a Buyer, it is important to understand that, while yes, costs of gone up on certain transactions, these taxes are a one-time, upfront cost. The owner does not incur the Mansion Tax and Transfer tax on an annual basis as would have been the case with the pied-a-terre tax.

As was the case with the proposed pied-a-terre tax, the State has earmarked the additional revenue (expected to be $365 million) from the Progressive Mansion and Transfer Taxes to go to the failing MTA system in New York City.

As always, for questions about how taxes impact you, consult your qualified tax advisor who understands your personal financial sitaution

Pied-a-Terre Tax Looms Over New York City Luxury Real Estate Market

Thought taxes in New York City couldn’t get any higher? Think again. The Pied-a-terre tax is back on the docket, and it has recently gotten some major support that pushed it further along than what it was last a topic of discussion in 2014.

Ken Griffin made headlines when he purchased a penthouse at 220 Central Park South for $238 million, making it the most expensive home in the country. He plans to use the home when he visits his New York office. This headline also caught the attention of City Council who started discussion on the Pied-a-terre tax once again.

So, what is a Pied-a-terre and the proposed tax?

A pied-a-terre is a part-time second home occupied for less than half of the year. Often times, it is an investment for the owner and may not be occupied. Given that the owner’s primary address is elsewhere, owners of a pied-a-terre in New York are not subject to state or local income tax.

The current proposal has a sliding tax surcharge and fee for homes priced $5 million and over, with higher priced homes incurring higher fees. City and State officials cited that they feel this additional tax is necessary to fund the failing mass transit system in New York City.

 Cause for Concern

Regardless of whether you think it is fair to tax the rich disproportionately or not, a proposed tax plan should be assessed in regard to economic impact before being implemented. From a real estate perspective, there is cause for concern based on the proposal of a pied-a-terre tax in New York City.

International Buyers: International Buyers have already been on the decline in recent years, and the implementation of a pied-a-terre tax would likely prevent some would-be foreign buyers from investing in New York.

 Luxury Condos and Co-Ops: We would likely expect to see some sort of downtick in the luxury segment of the market. Just because a buyer can afford a $5 million apartment, does not mean they spend frivolously and love taxes. Why would they invest in New York when they could invest in another viable city that does not impose a pied-a-terre tax?

The luxury segment of the market has already been under pressure in recent years, so another tax could additional pressure that is not needed in this sector.

 New Development: An adverse impact on the Luxury Market would likely spill over to the New Development pipeline for luxury properties. If there is a decreased demand overall for properties $5 million and up, why would Developers be incentivized to build properties that may not sell? This, of course, would then have an impact on all the employment created within the construction sector when development is booming.

High Costs to Transact: New York City is one of the most expensive places to transact on property without the additional pied-a-terre tax. Costs associated with a real estate transaction in New York City include Transfer Tax, State Transfer Tax, Mortgage Recording Tax, Mansion Tax, and Real Property Taxes. Not to mention, under the new Federal Tax Code, the deduction of SALT has been eliminated.

 Overall, if the tax were to have an adverse impact on the real estate market for properties $5 million and up, we would likely see a reduction in value at the high end of the market. This may especially may be the case for properties that are already valued/priced near the $5 million threshold as Buyers will submit bids under $5 million to avoid the tax.

Image via Getty Images

35 Hudson Yards: Here's What We Know

All Images Courtesy of Related Oxford

The long await and anticipation of Hudson Yards is almost over, with the Grand Opening scheduled for next week. We have been following the development and progress of what is America’s largest Real Estate development project. From Condos and Rentals to dining and shopping, Hudson Yards will be a true epicenter of the Far West Side. In fact, a new neighborhood has even popped up on the radar dubbed “SoHY”, or South of Hudson Yards.

We covered the launch of 15 Hudson Yards, one of the residential condominiums that is part of the project, and now, we are learning details about 35 Hudson Yards which is expected to launch sales next week along with the Grand Opening. If you thought 15 Hudson Yards was luxurious and jaw-dropping, wait until you see 35 Hudson Yards.

Here’s What We Know:

35 Hudson Yards is designed by David Childs and Skidmore Owings & Merrill with interiors by Tony Ingrao. The building will rise 92 stories, making it the tallest residential building within the Hudson Yards project. There will be 143 residences starting on the 53rd floor and ranging in size from 2 to 6 bedrooms. Pricing is anticipated from $5M.

Residences:

Residences range in size from 1,500 to 10,000 square feet. They will feature gracious entry foyers and ample wall space for art. Ceilings are 11 feet. In regard to finishes, there will be smoked oak flooring throughout the homes. Luxurious kitchens are designed by Tony Ingrao in collaboration with Smallbone of Devizes and feature Gaggenau appliances, white opal marble counters, and high gloss stained Eucalyptus cabinets.

Homes are sure to offer stunning and sweeping views of the Manhattan Skyline and of the Hudson River.

Amenities:

Residents of 35 Hudson Yards will enjoy a host of amenities and hotel-style service. There will be 22,000 square feet devoted to wellness and entertainment. In addition to this space, the building will be home to a 60,000 square foot Equinox as well as the world’s first ever Equinox Hotel.

•  6th Floor entirely devoted to amenities including yoga, playroom, fitness

• 24th Floor will be the Grand Terrace and Grand Dining Room, an event space that can accommodate more than 50 guests

• Residents enjoy access to the Equinox which will have an indoor and outdoor pool with large sundeck and cabanas

• Priority reservations at the building’s restaurants

• On-site concierge that can arrange thing such as in-room dining and ground transportation

In addition to the in-building amenities, residents enjoy all the amenities that come along with calling Hudson Yards home – there will be myriad world-class dining and shopping options, including New York City’s first Neiman Marcus.

Stay tuned for more information about the Grand Opening of Hudson Yards!

Why You Should Re-Consider Gary Vaynerchuck's Homeownership Comments

In a recent Podcast, Gary Vaynerchuck, known for his influential role in the media and advertising space as a leading entrepreneur, made strong remarks regarding homeownership that we would urge many to think carefully about. While there are certainly use cases that make sense for favoring renting a home, most individuals benefit greatly from homeownership.

What were his remarks, and why should you reconsider? Vaynerchuck stated that he feels buying a home is not an effective use of capital. He went so far as to state that he would rent for the rest of his life and never buy a home again.  

What You Should Consider

This is obviously a very strong statement made by Vaynerchuck as many view homeownership as part of the American Dream. When thinking about both his position and homeownership here is what you should consider:

Vaynerchuck’s Industry: Gary Vaynerchuck garnered most of his success as a tech entrepreneur. Starting companies, being an investor, etc. requires upfront capital needs that someone outside of this type of profession would not need. Thus, tying up a large portion of cash in the form of a down payment may not make sense for an investor that needs to remain more liquid. Additionally, one would reasonably expect that a tech entrepreneur would require one to be quite mobile in terms of traveling, so they would be less inclined to want to be tied down than the average person.

Equity: When you purchase a home, you are building equity in the home. Your monthly mortgage payments are going towards ownership, an asset that will be yours. When you rent, you pay your monthly rent which goes in your Landlord’s pocket – you are not working towards owning anything. Over the long term, homeownership has been the most influential vehicle for driving wealth accumulation. We have seen that, over a long time horizon, home values tend to increase, thus increasing the owner’s wealth.

Homeownership Is Not Dead: Most Americans still want to buy a home, and homeownership does make sense for a lot of people. However, the Millennial generation is struggling with homeownership because this generation is burdened with exorbitantly high student debt, coupled with high rents and costs of living in most job-hub city which makes saving for a down payment challenging for this group. As a result, Millennials are buying homes at a slower rate which leads some to believe that homeownership is dead.

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That is not to say that some of Gary V’s points are not valid when put into perspective. When thinking about liquidity, we would not recommend someone purchase a home that they cannot afford. If the down payment of a home will put you in a bad financial situation, you should likely reassess your budget to ensure you are buying a property that makes sense for you financially.  

Additionally, there are use cases for renting homes that also make sense for a lot of individuals. We can conduct rent vs. buy analysis that can help clients decide what makes the most sense for them. One of the biggest things to consider when thinking about renting vs. buying is time – are you planning to only be in this location for, say, 5 years? If so, taking on a 30-year mortgage to buy a home, etc. may not make sense and renting would be more suitable if you know you are going to be changing locations relatively soon.

Tallest Residential Condo on 5th Avenue Debuts Model Residences

277 Fifth Avenue by Rafael Vinoly unveiled the latest set of model residences perched on the 37th Floor of the new building in the heart of NoMad. 277 Fifth Avenue, rising 55 stories on 5th Avenue, is at the intersection of Downtown cool and Uptown sophisticated with stunning views through oversized windows. The building is a Victor Group development with architecture by Rafael Vinoly, comprised of 100% corner units. Interiors are designed by acclaimed designer Jeffrey Beers International feature finished comprised of warm woods and elegant natural stone.

Residence Features

• 10 to 11 foot ceilings in entertaining areas with select residences featuring 20 foot double-height

• White oak flooring

• Dornbracht plumbing fixtures

• Fully integrated Miele appliances

• Master Bath: Kaldewei Puro Duo steel enamel tub with Bianco Dolomiti marble slab tub deck

277 Fifth unveiled both units 37B and 37C. Both units are 2 bed // 2 bath with 37B spread over 1,279 square feet while 37C is slightly larger at 1,397 square feet. Both units offered incredible skyline views…especially at Sunset.

Amenities

In addition to designing the interiors of the residences, Jeffrey Beers International has also designed two floors of amenities in the building spanning 7,000 square feet. There are dedicated spaces for relaxation, socializing, and recreation.

• Curated Lobby Library with double-height bookcase wall

• Entertaining suite with bar and kitchen pantry

• Terrace

• Kids’ Club

• Game Lounge with custom ping pong table

• Fitness Club inclusive of yoga studio as well as Men’s and Women’s Sauna/Steam Rooms

277 Fifth was one of the top-selling new developments in Manhattan in 2018 as based on Contracts Signed.

Interested in calling 277 Fifth Home?

Top Picks for an Enjoyable Valentines Day

Valentine's Day is rapidly approaching on February 14th- have you made plans to make the day special for your loved one? We have curated some ideas to celebrate Valentine's Day from gifts to dining. If you are single, why not grab a friend and head to a great restaurant or enjoy a good bottle of champagne?

Chocolates

Teuscher Chocolates

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For the chocolate lover, Teuscher is a must! The iconic Swiss Chocolatier is most well known for its Dark Chocolate Champagne Truffles. The company started over 70 years ago in a small town in the Swiss Alps as one master chocolate maker embarked on a journey to find the best ingredients which would lead him to create recipes for, what many critics, regard as the world’s best chocolate.

For Valentine’s Day, head to the Boutique on Madison Avenue or Rockefeller Center to pick up the Velvet Valentine Hearts filled with their iconic truffles.

Flowers

Ovando

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Ovando takes a unique approach to floral arrangement, creating stunning displays both classic and modern. Quality and craftsmanship defines the brands beautiful arrangement. The store, dubbed the Botanical Gallery, is a experience not worth being passed up, and can also be rented for private events.

The Valentine’s Day collection is filled with everything from heart-shaped arrangements to iconic Ovando arrangements in beautiful pink and red colors. Our team favorite is the iconic floating orchids for which Ovando is known.

Champagne

Ruinart

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Ruinart is the oldest champagne house in the world, established in 1729, and producing champagne since. The house barely survived World War I because of severe damage, but we are glad it did! Most of their Champagnes rely heavily on the Chardonnay Grape. With Teuscher Truffles in hand, you cannot go wrong pairing it with Ruinart Blanc de Blancs.

Dining

Manhatta

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If you are looking for a truly special dinner spot where the food is equally as amazing as the views, you must go to Manhatta. Located on the 60th floor of 28 Liberty, the restaurant by Danny Meyers functions on a 3 course pre-fixe menu with an accessible price point.

Best Activities & Buildings for an Active Lifestyle In New York

Fresh Start to Active Living Around New York in 2019

New year, new you? Whether you have grand ambitions for 2019 or just want to be a little more active, there’s an outdoor or active living option for you in New York City. From group fitness classes in the warmth and comfort of a studio to exercising while enjoying the city’s outdoor spaces, here’s some inspiration for making a fresh start with active living around New York in 2019. Plus, can’t get outside? Read down to find out about the buildings offering the best amenities for living an active lifestyle without having to leave home.

Join a yoga class

Whether you’re already flexible or are wanting to become more so, there’s a yoga studio on practically every street corner in NYC. Meditative yoga, hot yoga, restorative yoga, laughter yoga, and naked yoga (yes, really) are just a few of the varieties you can check out. Plus, in the summer you can join an outdoor yoga class--strike a tree pose while being surrounded by the real thing. Bryant Park, Prospect Park, Astoria Park, and Hudson River Park offer large open spaces as well as beautiful views, and rooftop yoga is also an option. The great thing about yoga is that you can practice at home without any special equipment, so fitting active living into your daily routine is super easy.

Kayak or canoe on a waterway

Kayaking or canoeing on the water is a great way to get in shape while admiring city skyline views. The New York City Water Trail links 160 square miles of waterways across New York’s boroughs, offering almost endless options for exploring. Plus, in the summer, some free kayaking and canoeing sessions are offered on the Hudson River, East River, and New York Harbor. You can hire kayaks/canoes and gear if you don’t have your own or want to see whether the sport is for you before making a larger investment. Kayaking and canoeing can be as solitary or sociable as you like, with tandem and single boats available, making it easy to combine your workout with an accountability buddy.

Cycle the city

While the dense urban environment of New York City might not seem to offer ideal cycling conditions, cycling is growing in popularity in the city. Many New Yorkers are now cycling to work, joining cycle clubs, and making use of bicycle sharing and hiring facilities. If zipping through the city traffic doesn’t appeal, Central Park and Prospect Park encourage cycling at the weekends by limiting or prohibiting motor vehicles, so you can enjoy a ride without the worry. Plus, you can always join a spinning studio for stationary cycle fun in conjunction with loud, up-tempo music. Expect to sweat.

Hike a trail

Hiking trails surrounded by nature may be closer to the central city than you think. Just an hour or two outside the city you can find woodland, rolling hills, streams, and lakes to explore. Bronx’s Pelham Bay Park, Arden Point-Hudson Highlands State Park, Staten Island’s Green Belt, and Franny Reese State Park are just a few of the easily accessible spots within a couple of hours of NYC that offer fun day hikes suitable for the whole family. To step up the activity level if you’re an experienced runner, try trail running. Some trails can be reached via public transport, while others do require your own set of wheels.  

Dance, dance, dance

New York is famous for its vibrant dance, from Broadway to Latin to hip hop to classical. Whether you dance like no one's watching or just want to try on some dancing shoes for a while, New York is the place to get active to the beat. For group dance classes in a gym setting, try Zumba. For something a little more risque but very good for your body, pole fitness will teach you some slinky moves. To combine dance moves with yoga and Pilates exercises, head to a barre studio. Plus, you can always practice what you learn in class during a night out on the town (go easy on the alcohol if you’re trying to get or stay in shape).

Cross-country skiing

If you have your own cross-country ski gear and there’s at least 6 inches of snow on the ground (which, let’s face it, is most winters now), head to Central Park to warm up. There’s flat and gentle hilly terrain that’s suitable for a range of levels of experience. The Sheep Meadow, Great Lawn, and North Meadow areas of the park are especially good for skiing. And of course, there are great cross-country skiing destinations a little further afield upstate, if you want to make a day or weekend trip of it. Rockland Lake State Park, Fahnestock State Park, and Minnewaska State Park Preserve are all fun destinations for cross-country skiing.

Buildings with Amenities to Live an Active Lifestyle

50 Riverside Boulevard

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50 Riverside Boulevard is home to 50,000 square feet of lifestyle amenities by LA PALESTRA. 40,000 square feet of the amenities is the athletic and spa club which offers every activity you could imagine - swimming, rock climbing, gym, basketball, and 2 squash courts.

One Manhattan Square

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No one does amenities quite like Extell Development. One Manhattan Square garnered attention when it was dubbed as a “City within a City” because of the very extensive amenity offering - spanning 100,000 square feet total! To stay active and healthy, One Manhattan Square will be offering residents a full size basketball court, fitness center, hammam with cold plunge, 75-ft 3 lane pool, and more.

American Copper Building

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SHoP Architects has created a unique amenity space in the American Copper Building in the floating bridge that connects the two towers. Perhaps the most unique aspect? The pool that allows residents to swim from one tower to another 300 feet in the air. In addition to a pool, residents can enjoy a double-height fitness center, rock climbing, and a yoga studio.

Interested in which Buildings will allow you to live the lifestyle that you enjoy? Contact Us! We know the best amenities around the City.

Luxury Amenities are Going to the Dogs - In the Best Way Possible

Owning a pet in New York City can be challenging – Will they get enough outdoor space? Who is going to walk them when you are putting in long work days? Will the building I want to live in even allow pets? As more and more New Yorkers get pets, these questions have become ever more important for Developers looking to attract well-off city dwellers. So, are the amenities going to the dogs? Yes – but in the best way possible! 

If you are looking to ensure your dog is living its best life, there are buildings across Manhattan that are offering your canine companion the best of the best when it comes to amenities and services. The buildings below, of course, allow residents to have pets, but the first step in searching for a home in New York when you have a pet is letting your Broker know. Some buildings do not allow pets at all, while some only allow cats, or have some restrictions related to size and breed.

We’ve rounded up some of the buildings with the best Pet Amenities across town-

Waterline Square

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The Starchitect-designed Waterline Square project features a host of amenities, of which lavish pet amenities are included. The good news is, whether you choose to live in One, Two, or Three Waterline Square (perhaps based on your preference for architects including Richard Meier, Kohn Pederson Fox, or Raphael Vinoly), you will have access to the Waterline Club which includes over 100,000 square feet of amenities.

For your four-legged friend, the Waterline Club will offer an indoor playroom for dogs to socialize as well as a dog washing salon and dog training studio. 

50 West Street

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Rising tall above lower Manhattan at 778 feet, 50 West Street is a new development glass tower that arrived with the wave of revitalization happening Downtown. While residents will enjoy stunning River and Harbor views from the homes as well as luxe amenities for themselves, pets will be able to enjoy a dedicated amenity space as well – 200 square feet for the pets to be exact.

Additionally, 50 West has partnered with a top-notch Vet and Groomer so you don’t have to worry about where to take your pet. They will make house calls right to the building. Rumor has it the Groomer is the same one that fashion designer Isaac Mizrahi uses.

15 Hudson Yards

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Hudson Yards has a lot of buzz surrounding it – from it being the biggest development project to more intricate details of businesses and stores moving into the area, this project is seriously transforming the Far West side of Manhattan. Part of the project includes both Rental and luxury Condominiums. 15 Hudson Yards has received a lot of attention as a condo within the project.

The luxurious building from Realted Companies will offer Residents access to services from Dog City. Related Companies founded Dog City in 2011 when it launched inside MiMa in Midtown Manhattan. The company offers onsite boutique pet services for building residents ranging from everything from grooming and walking to play dates. Annual membership starts around $250 with services such as Grooming being an additional premium at time of service.

555 Ten

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This Midtown Rental building from Extell offers, perhaps, some of the best pet amenities that can be found in the city. 555Ten is an Extell building, and Extell is known for their extensive and over-the-top amenity offerings throughout their buildings – think One Manhattan Square!

If you want your pets to be able to live their best life, 555Ten offers everything to help make that possible. Amenities for pets include a Pet Spa and Veterinary Clinic by Throw Me a Bone. There is also a daycare facility and covered outdoor play space to ensure your dog gets the outdoor time it deserves.

Throw Me a Bone offers services including walking, training sessions, 2-hour play sessions, house call vet visits, and “Yappy Hour” where your dog can meet its fellow neighbors.

252 East 57th Street 

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Worldwide’s 252 East 57th Street may be located conveniently to the Second Avenue Promenade, but the building is also ensuring your pet can get pampered without having to leave the building. 252 East 57th Street is home to Spot 57 Play Space and Grooming Bar.

Spot 57 offers residents and their pets an array of services from walking to daycare. Additionally, there is an interactive play space for dogs to mingle and play on those rainy or snowy days when getting outside is difficult. In need of grooming? That’s also possible at the grooming station which included convenient sitting so you can wait while your pet gets pampered.

What You Need to Know: Judge Rules in Favor of Airbnb

Airbnb came into the headlines in New York last summer when City Council voted unanimously to enact a law that would require Hosts to disclose information including address of properties and identity to the city. City officials and the Mayor argue that Airbnb has essentially created an illegal hotel industry within the city. New York is one of the largest cities for the home sharing service. Under existing New York State law, most buildings do not allow an apartment to be rented for less than 30 days unless the permanent tenant is living in the apartment at the same time. City officials hoped this law would crack down on those violating this law and remove listings from Airbnb.

The law passed last summer stated that the detailed information pertaining to the units would need to be provided to the city monthly. Airbnb and Homeaway brought a law suit against the City, claiming that the law was unconstitutional. The law was slated to go into effect next month, however, a Federal Judge has blocked the enactment of this law in Manhattan Court.

Based on the recent ruling, here’s what you need to know:

• The law is blocked from going into effect based on the premise that the collection of the data would be in violation of the 4th Amendment and would subject hosts to involuntary search and seizure.

• This blocking is not necessarily permanent! It will be blocked will the litigation between parties continues. The outcome of the litigation will be important

• City officials arguing that many people are running illegal “hotels” as they are violating the short-term rental law, and having guests in units for very short terms, creating a “revolving door” which could be potentially dangerous to other building residents

It is important to remember, if you are considering listing a property with Airbnb, under New York State law, short-term rentals cannot be less than 30 days unless the permanent tenant is also occupying the unit. This was and still is a State Law!

We anticipate that many people are in violation of this, and that is what the proposed legislation was hoping to crack down on. If you are listing your property on Airbnb in New York City, ensure you are adhering to all laws.

2019 Outlook: What to Expect for the New York City Real Estate Market

As we enter a new year, we welcome new expectations for the housing market as we think about the year ahead. Briefly looking back at 2018, the year started off on a different note than it ended, namely rates rose to their highest levels in decades by year’s end, and the market fully transitioned to a Buyer’s Market. How do we expect 2019 to pan out?

The year ahead is likely to be a bit tougher than 2018 and remain soft overall as a result of the Fed. Prices remaining at minimum stable would be a positive, and a small rate of price appreciation would be even better. When people see their home rise in value, they feel wealthier whereas declining home values can spark a feeling of an impending recession. Thinking about 2019, we identified 4 areas of focus 1) Interest Rates, 2) Millennials, 3) Inventory, and 4) Rentals.

Interest Rates

We anticipate that interest rates will continue to rise in 2019 given the strong economic fundamentals and low unemployment rate in the US economy. Rates may begin to approach levels that finally squeeze some folks out of the market and into a smaller home than originally planned. Rising rates may also encourage some would be “Trade Ups” to stay put. Increasing rates is likely to impact first-time buyers most heavily as increased rates means less buying power. From a larger, national housing market perspective, this could also contribute to slowing sales as Buyers grapples with higher mortgage rates and recent rapid price increases over the past few years. 

Millennials

Millennials may be more at the forefront of the 2019 market than they were in 2018. This group could be a large driving force on the buy side of the market, especially for entry-level priced properties in New York City. The largest portion of Millennials will be ages 29-30 in 2019, a prime age for first-time homeownership. In a market such as New York, Millennials tend to be more affluent and savvy consumers, understanding the value in buying a property versus paying New York rent prices over the long term. Successful Millennials who have worked in industries such as Finance and Tech are likely armed with enough cash for a down payment.  Studio-1-bedroom properties priced below $2M are appealing to this group of Buyers. 

Inventory

Inventory is likely to remain elevated in NYC in 2019. New Developments continue to come to market and close, projects remain in the pipeline, and resale inventory will continue to come to market as well. This will be especially evident in the luxury sector of the market ($4M+) which has been experiencing a glut of inventory versus demand, a factor resulting in the shift to a Buyer’s Market. Average asking prices were inflated approximately 10% throughout 2018, and we expect the same to hold true throughout 2019. This means that Sellers had to take a significant reduction from Ask in order to get deals done. It is important to remember that deals get done when the price is right!

Rentals

Rent prices could likely see an uptick in 2019, attributed to the arrival of Amazon and increased demand. Amazon will bring with it a large number of high paying jobs, and thus increased demand from their employees as well as peripheral interest generated when a company such as Amazon picks a city as their home base. Google has also been discussing bringing a large number of net new jobs to NYC. Whether we see an increase in rent asking prices with concessions available or the dropping of concessions with asking prices remaining consistent resulting in a net effective increase in rent remains to be seen. We feel the latter is a probable scenario as landlords tend to drop concessions with demands increases as there is more competition for units. Additional rental inventory is something to watch in 2019 as it relates to pricing as this could be a factor that keeps a lid on rising rental prices.