New York Residents Opting for Suburban Homes Over City Apartments
In Manhattan, known for its upscale lifestyle, high-rise apartments, co-ops, and condos are struggling to find buyers as city dwellers are moving away from the densely packed urban environment. Recent reports from real estate appraisal firms Miller Samuel and Douglas Elliman show a significant 57% drop in apartment contract signings compared to the same period last year. The more luxurious co-ops and condos, some priced as high as $10 million, have suffered even more, with deal closures plummeting by 75%.
One major factor contributing to the decline in apartment sales is the ongoing COVID-19 pandemic. As New York remains under lockdown, real estate agents are finding it challenging, and often impossible, to showcase expensive properties to potential buyers. Additionally, many of Manhattan’s affluent residents have opted to leave the city temporarily, seeking refuge in the more spacious surroundings of suburban areas.
Jonathan Miller, the CEO of Miller Samuel, noted, “The city is less of an anchor now. It’s going to take longer for the city to recover compared to the suburbs.”
As wealthy individuals are shifting towards suburban living, real estate activity in those areas is seeing a boost. Contract signings in popular locations like the Hamptons and Westchester County have doubled, reaching 267 and 987 respectively in the past month. Some New Yorkers are even choosing to relocate out of state, leasing properties in Connecticut suburbs. Fairfield County in Connecticut saw a notable surge with 1,200 new contracts signed in just July alone.
Scott Durkin, the President and COO of Douglas Elliman, mentioned, “Anything within a two-hour radius of the city is as busy as it’s ever been. There’s just this fear of density right now.”
Despite the current trend of urban exodus, real estate professionals express optimism that once a vaccine is widely available and normalcy returns, business in the city will pick up pace swiftly.
Durkin added, “We had price reductions even before Covid. With record-low interest rates, property prices may not be as negotiable as some buyers anticipate. However, individual circumstances will vary, and some sellers may need to act quickly.”
