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According to new data from StreetEasy, more than 25 percent of new condos that have been built in New York City since 2013 remain unsold.
In terms of units – of the 16,242 condos built since 2013, about 12,133 have sold. That means more than 4,100 have not.
The median price of a condo in Manhattan is $2.3 million.
A backlog of unsold units has not stopped construction. According to the report, 63 buildings with more than 5,600 units are listed, but have yet to finish construction.
Investors appear to hold a large proportion of these properties because they have shown up on the rental market. According to Street Easy, 30 percent of the condos built since 2013 have been listed for rent.
The implications? Researchers say these trends could be indicative of a potential future recession.
“New Yorkers can expect this condo hangover to last well into the future,” the report predicted.
Recent patterns have spelled bad news for current residents, too. A “prolonged slowdown in the apartment sales market,”contributed to an unusual spike in rent prices during the month of July.
Weakening demand has been evident throughout this year. According to a report from real estate giant Brown Harris Stevens in July, the average resale apartment price fell 5 percent from one year ago, to $1.64 million. Sellers were offering their biggest discounts since around the time the market crashed.
Home prices in 2019 are also falling at the fastest rate since the financial crisis – down about 5 percent. Sales in the first quarter were down 2.7 percent year over year, according to research from Douglas Elliman.
Meanwhile, New York, like several states, has been grappling with the fallout from a $10,000 cap on state and local tax deductions, which has driven some wealthier tax payers to lower-tax destinations, like Florida.