The Current State of the NYC Housing Market
New York City has always been known for its astronomical housing market. A no larger force than the pandemic could have heavily impacted housing sales. With COVID-19, New York City’s boroughs have seen massive shifts in house sales and buyer behavior. To understand the current state, let’s look at the beginning of this tumultuous journey since March.
What is the Current State of the NYC Housing Market?
In a nutshell, the housing market is breaking NYC’s back. The impact of COVID-19 was immense, toppling house sales by 40% across all boroughs. Particularly since the lockdown began right at the busiest time for real estate, the effects have created a domino effect on the city’s budget and migratory behavior.
Some Boroughs were Hit Harder than Others
House prices are lower than ever, including that of Manhattan. The last time a Manhattan apartment went for $3000 was almost a decade ago. Manhattan was hardest hit by the mid-March reactionary lockdown. Apartments selling above $1 million experienced a steep drop this summer, according to Forbes and ABCData. While it has been gradually rising, Brooklyn has remained steadfast, flourishing in real estate.
Unfortunately, many of Manhattan’s richest have migrated elsewhere, with the taxes they could have paid to the city. Moving to other boroughs has racked up the market in Brooklyn and Long Island. For instance, there has been an increase of 34% for single-family homes and 38.8% for condos on Long-Island. As for the Bronx and Queens, and Staten Island, the borough underwent a dip in home sales between April and June (on average), and now are resuming their normal numbers.
The State of Renting and Employment
Meanwhile, the state of housing is challenging for renters and landlords. Unemployment was at an astounding high for renters, rising from 3.4% pre-pandemic to 20.3% midsummer. Either way, dismal unemployment rates are alongside lower rent, especially in lower-density areas. Whether renters are unable to pay rent or leave to find work elsewhere, landlords have no choice but to decrease rent. As for higher-density neighborhoods like Elmhurst and Jackson Heights, rent prices remain buoyant, not falling as much as other places.
Looking Forward: What to expect about the NYC Housing Market
Long-term, the projection for NYC is unknown. The pandemic could have negative implications for New York City’s lifeblood, financially and otherwise. What’s certain is that now’s the right time to grab onto the city’s more forgiving housing prices.
Location, Location, Location: Should You Consider a Mixed-Use Development for Your Business
Mixed-use development is an increasingly popular type of real estate. The ability to combine commercial, residential, cultural, and even industrial facilities into a single building can save on space, reduce urban sprawl, and provide unique opportunities for residents. However, not every business will benefit from being part of mixed-use development. Before they transfer their company to a mixed-use building, companies need to consider these factors carefully.
Will the Location Appeal to Desired Customers?
The first thing any business should do is think about their desired customers and consider how the neighborhood would work for them. For example, if a company depends on foot traffic, working far away from the town center might be a bad idea. However, for other businesses, mixed-use buildings enhance the customer draw. For example, a dry cleaner can do well in a development with residential space.
Is the Business Compatible With Existing Tenants
Make sure that the company works well with the existing tenants. A busy bar may not do well in a residential mixed-use building with rules about noise levels, or a spa may struggle to create a peaceful environment if the mixed-use building contains industrial space. It may be a good idea to do a little research beforehand, talking to the other residents in the building to see if they would appreciate a new business moving in.
Who Manages the Property?
One potential downside to mixed-use buildings is that one’s business typically will not own the building as a whole. Instead, they will need to rely on the building’s owners and property managers for maintenance and upgrades. Therefore, it is essential to thoroughly research the building’s property management to make sure they do a great job meeting each company’s needs. Ensure they have clear guidelines in place for handling repairs, landscaping, and other essential tasks.
Does the Building Match the Company’s Brand Image?
Every company needs to think carefully about their brand image and identify ways their location may contribute to or harm that image. Mixed-use buildings are often seen as modern, youthful, environmentally friendly, and community-focused. For many companies, these sorts of conceptions can help improve their brand image.
Benefits of Investing in Mixed-Use Development
Mixed-use developments are on the rise as landlords find great ways to generate income and reduce vacancies in their buildings. Though not for everyone, mixed-use developments, when strategically placed, are an excellent investment for the owner. Some examples of the benefits of investing in mixed-use development include;
High rental demand
Individuals continually get drawn to the mixed-use property as they opt for communities that allow them to walk to work and stay a walking distance away from social amenities. Most people love these developments as it gives them time to share with their loved ones making their rental demand high and assuring an investor of returns in terms of rent.
Diverse clients
The opportunity of having various clients in a building, whether horizontal or vertical mixed space, is ideal and reduces the risk factor involved. It also ensures that the rooms are occupied all year round and reduces the chances of loss. Diverse clients not only reduce risks but offer an opportunity for the investor to access quality clients.
Convenient
Mixed-use developments offer a conducive lifestyle to their clients. Everything is a walking distance away, making them ideal for individuals with fast lifestyles or those who want to live near amenities. The convenience of accessing everything within a neighborhood makes them ideal.
Less risky investment
Investment is a risky affair if not adequately planned and thought through. The risk of putting so much money into something that does not bring in good returns is often a looming fear that investors face. Thus, having a mixed-use development reduces the chances of bad investments as the spaces house diverse clients making it ideal for businesses, families, and leisure activities. This wide range of clients minimizes the risk factor.
Smooth business operations
Property managers are trained and fully equipped to handle mixed-use developments making them ideal for business and residential facilities. Proper running of such buildings ensures they are clean and presentable.
An investor also can hire only one property manager to take care of the facility as everything is in the same building or a walking distance. There is thus excellent communication that ensures clients’ needs and complaints get adequately settled.
Conclusion
Mixed-use developments are increasingly becoming popular. As an investor seeking opportunities, this is the kind of direction one would like to minimize risk.
About Avraham Glattman
Avraham Glattman is the owner of First American Properties Group, a real estate business based in New York City, New York.
Avraham brings over 26 years of experience working as a real estate agent in the city, where he continues to work today. He graduated from Newport University with a Bachelor’s Degree in Business Administration and Management and remained at the university to attain his Masters of Business Administration (M.B.A.). After graduation, he jumped straight into the real estate field in 1992 in the greater New York City area. Throughout his career, Avraham has explored listings across the New York area, keeping a detailed account of the locations, pricing and comparable properties in the housing market.
After gaining a wealth of knowledge about the real estate marketing in New York, Avraham Glattman decided to take it a step further by creating First American Properties Group with his longtime business partner, Pete Jacov in 2008. First American Properties is a real estate and development company that services the five boroughs of New York. The company currently owns residential and commercial properties in Queens, Downtown Brooklyn, Harlem, and Manhattan. The company focuses on monitoring the growth and development in different areas of the city, so they can work to establish more patterns of growth and help revitalize the area.
While monitoring the different areas of New York City, Avraham Glattman consistently keeps an eye out on up-and-coming neighborhoods that he could potentially invest in. For example, after seeing Harlem, Avraham was immediately impressed by the neighborhood’s charm, leading him to invest in properties in the area. With a convenient location next to the subway and charming business like music venues in the area, it was not hard to see what attracted Avraham to the area.
Today, Avraham Glattman continues to find new investments with First American Properties Group, alongside his business partner, Pete Jacov. Together, they are working towards the goals that they set for First American Properties Group. The goals include acquiring property in the Harlem area to renovate and sell, as well as acquiring properties in all five boroughs.
Avraham Glattman is also the proud owner of 1927 Café Bar Popularr. Located in Harlem, the café serves a variety of open-faced Mediterranean sandwiches, called ‘Toastics’, and many types of coffee. Café Bar Popularr is proud of the rich artistic traditions of Harlem, and invites local musicians, authors, and comedians to visit and share their talents with friends.
Avraham was born and raised in Israel, where he went graduated high school. Not long after, he served in the Israeli army for three years, before he was sent to the United States to work with an Israeli newspaper in Brooklyn, NY. Not long after making the move to New York, Avraham met the woman that would become his wife in 1991. Together, they have three children.
In his spare time, Avraham Glattman enjoys spending his time with his wife and three children and loves to explore new parts of New York City. Avraham’s incredible dedication to both his work and family brings him immense happiness and purpose each day.
To learn more about who Avraham Glattman is, visit AvrahamGlattmanNewYork.com.
