Before the COVID-19 pandemic, the real estate industry in New York was booming like never before. It did stop for a while since people were required to stay home, but more people are now taking the initiative to sell and find new real estate to live in. This has made real estate agents thrilled and terrified for the work they have to put in.
Real estate investors are also having to take a second look at what they are purchasing and renting out to those that live in New York. These are just some of the trends that real estate investors are starting to face.
Manhattan has been a global hub for some of the largest businesses in the world for the past couple of decades. This necessarily hasn’t changed because of the pandemic, but many more businesses are offering the chance for their employees to permanently work from home. This allows more workers to uproot where they are living to live somewhere cheaper.
In all, this means that Manhattan might not be sought over as much for the more middle-income workers of America. This hasn’t changed demand in other parts of New York City, as it’s been found that housing prices in Manhattan have dropped while other parts of New York City have seen rent rise. If you’re a real estate investor, you must strongly think if it’s worth it for them to purchase property in Manhattan or not.
Many young couples get away from New York City when they are looking to start a family. Where do they go through? Other than moving to other states, more people have been moving to the suburbs of New York. These include places such as The Hamptons, Long Island, Dutchess County, and more.
For example, it’s been found that the median sale prices of homes in The Hamptons have gone up 27%, giving investors a lot of reason to invest their money into the suburbs. As time goes on, it’s expected that more families are going to make the switch to suburb living, giving real estate investors a good opportunity to invest in fledging areas. Strongly consider if you should be investing in the suburbs or not.