NYC Real Estate: Biggest Home Price CRASH in America?

New York City's Real Estate Market has been the worst-performing in America over the last five years. Home/condo prices in Manhattan have declined by 5% in aggregate since 2016 and by as much as 25% in certain neighborhoods. Existing home owners in NYC have lost significant equity. Potential home buyers and investors are wondering: can new mayor Eric Adams right the ship?

Chelsea - one of the highest-income neighborhoods in Manhattan - is America's worst performing housing submarket. Condo and townhome prices in Chelsea have declined by a whopping -25% over the last 5 years according to Zillow. Nearby neighborhoods such as Hudson Yards, Hell's Kitchen, and Herald Square have had similar declines.

But the declines don't stop there. The Lower Eastside (LES), TriBeca, and Financial District (FiDi) are also in the crosshairs of the housing crash with -15% price declines in the same time span.

How is it that New York City - the the city that never sleeps, the Big Apple - has performed so poorly from a real estate perspective? Well, there are two principal reasons: 1) the NYC Exodus and 2) China.

New York City is losing people left and right, with over 500k people migrating out of the city over the last 5 years according to US Census Bureau estimates. This negative migration trend is depriving the local Real Estate Market of demand for condos and apartments, which is subsequently pushing down prices and rents.

At the same time as decreased local demand for real estate, NYC also lost demand from another key source: mainland China investors. In the mid-2010s these investors from China bought of condos left and right across Manhattan - often in cash and for over ask. But after China implemented new capital controls in 2017 the Chinese demand for US real estate, and particularly NYC real estate, declined substantially .

Where does NYC go from here? Well, it could have another 5-10% price drop in the cards given how badly its economy has been impacted over the past year. However, good news could be on the way with Mayor Elect Eric Adams, who seems poised to turn the city around from the negative reign of Bill DeBlasio.

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0:00 Live from NY!
1:12 NYC Real Estate Crash
3:19 10-20% Price Declines Everywhere
4:54 NYC Exodus Starting in 2016
7:25 Why are People Fleeing New York?
10:25 80% Decline in Office Workers
12:58 China Demand: Only 35% Sold?
14:30 Chinese Capital Controls
16:03 Another 5-10% Decline in Prices?

#NYCRealEstate #ManhattanRealEstate #NYCHousingCrash

Видео NYC Real Estate: Biggest Home Price CRASH in America? канала Reventure Consulting