If you thought 2014 was bananas for the amount of new condo developments it brought to New York City, just wait for 2015: the New York Times reports that this year 6,500 new condos will appear in the city, the most introduced to the market since 2007 (which contributed 8,052 pads.) Albeit some of these condos will be in already-announced, super-pricey projects like Jean Nouvel's MoMA tower and 111 West 57th Street, the influx of new condos will actually be a boon to buyers, at least according to the Times. "Whenever you have a strong market in a competitive environment, the ultimate winner is the consumer," chief executive of CORE Shaun Osher told the Times. How are consumers winning? Presumably the supply will diminish the demand and drive costs down. At least that's how it seems to work everywhere except for New York.
Despite the wealth of tall towers rising in Midtown, the paper claims that the city won't experience quite the glut of new luxury development it's bracing for. A Corcoran Sunshine rep. told the Times that less than 10-percent of new apartments coming to the market will fall in the ultraluxury bracket and cost more than $5,000-per-square-foot. For the remaining 99-percent of people looking to buy, there will be a mix of other apartments of questionable affordability; 50-percent, or 3,300, of the new apartments will be priced between $1,700 and $2,300-per-square-foot, and the number of "entry level" apartments, or apartments costing less than $1,700-per-square-foot, will rise. Of the 6,000-some new condos, 800 will be priced in this bracket. Oh great,
something for everybody.
· Year of the Condo in New York City [NYT]
· Illuminating New York City's Gentrification, One Story at a Time [Curbed]