In New York Race Can Sometimes Be The Difference Between Renting or Owning

Recent market data says Manhattan’s investment sales were down by 50 % in 2017’s first quarter. Over half of New York City‘s white households own their homes while minorities barely own a third. 59% (white) vs 34% (minorities) is quite a gap.

Private Homes

Luxury Sales / Olshan Realty

In the last two months less than 20 luxury sales have been made. Fourteen contracts were signed for a total of slightly more than $4 million with an asking dollar of $87 million for the lowest in 53 weeks. No single contract was worth more than $10 million and this hasn’t happened since 2012.

CityRealty 100 / CityRealty

According to CityRealty’s ranking, beginning July 1, 2016 and ending June 30, 2017 the best 100 condo buildings in Manhattan were selling at approximately $2,788 per square foot. This is an increase of 3.4 percent per year during the last decade which is ahead of S&P’s 2.2 percent but far behind Gold’s 6.8 growth. Prices went up partly because of closings recorded in exclusive, newer developments on Park Avenue, TevfikArif, One57 and Central Park West.

Homeowners vs Apartment Dwellers

As the fourth most diverse metro in the U.S., as well as 17th for the biggest gap in minority homeownership, New York can still say that this gap has shrunk by more than 6 percentage points in the last seventeen years. Current stats say that 64.4 percent of white households own their homes.

Asian’s are at 54, Hispanic’s at 41.1 and a mere 32.7 percent of black households own the home they live in. Many feel this racial divide highlights a serious problem in the U.S but in any case, by 2044 the census bureau predicts that over half the American population will be part of a minority.

Commercial

Investment Sales / REBNY

2017’s first half totalled over $10 million in investment sales for Manhattan. This was half the amount for the same time frame in 2016. Sales were down by 40% all over the city while in Manhattan they were down in every category. Multifamily was at 48, office by 46 and 44% in retail. Although the value of Manhattan’s property investment sales are more lucrative than other boroughs the difference of consideration and transactions between is dwindling.

CommercialCafe / Office Sales

Although the market begins to look more promising in the near future, during the first half of 2017 only four of the top 20 office sales completed in the U.S. were in New York. This ties them with Boston for the most sales in one city. Investors are looking away from New York to other areas in the country and competition has become fierce. In New York Asian investors are once again in the spotlight with a $2.2 billion purchase on Park Avenue.

Retail Outlook / JLL

Investments in retail for the entire U.S. was at $27 billion for the first half of 2017 which is down 18.7 % for the same time period in 2016. Rent has increased 5% per square foot and vacancies are stable at 4.9%. Primary markets experience a strong demand even though overall, retail investments have declined over 18%. Investors are cautious and selective with retail investments these days and who can blame them with tenancy risk and disruptions online to consider.

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