Of every real estate market in the nation, New York City, NY is one of the most competitive. According to data from Realtor.com, the mean home listing price in the city is around $899,000.
If you're a real estate investor, it's important to understand more about this dynamic real estate market.
Read on to learn some insights, tips, and trends about the New York City housing market to help you navigate this unique part of the United States.
Residential Real Estate is at a Premium
While the commercial real estate market struggles, housing in New York City is at a premium. Homes are scarce, and there has been almost a 22 percent decrease in available homes for sale as of January 2024.
Not only are homes for sale getting scarcer, but the asking prices are increasing. According to Redfin, the New York City housing market has seen a 24.5 percent increase in the median asking price year-over-year.
The market here is poised to grow over the next several years, even if other markets are shrinking. This means you should be as savvy as possible when it comes to investing here.
Neighborhoods and the NYC Real Estate Market
Whether you're an investor or in the property management industry, the neighborhood makes all the difference. For example, homes in Manhattan will sell for more (and cost more) than homes in Brooklyn.
If you're looking to invest, it's important to thoroughly analyze each of the five boroughs before you commit. Look carefully at things like crime rates, school ratings, and amenities. Knowing what these are for each neighborhood and understanding how they relate to the real estate market will help you make the wisest investment.
The majority of renters and home buyers are looking for easy access to public transportation and great schools. Some may also be interested in property with a gym and on-site laundry or in-suite laundry. Understanding what prospective tenants want will help you determine which property is the best option in terms of ROI.
Use a Property Management Company
Once you invest in residential real estate, hiring a qualified, experienced property management company is crucial. These companies can help you with everything from rent collection and tenant screenings to marketing.
New York City has one of the lowest vacancy rates in the country. However, you should be proactive by hiring a property management company to help keep your units occupied for as long as possible.
You can make renting more enticing by offering incentives including discounted rent or flexible leasing options. Giving tenants more flexibility will make renting from you much more appealing than the competition, resulting in higher tenant retention for you.
Make New York City Work for You
Although the New York City real estate market is challenging, it's possible to make it work for you. Remember these simple tips to ensure that you're investing in the best possible property and hiring an experienced property management company.
If you're ready to invest in New York City real estate, PMI Properties can help, so get in touch with us today!
