You can’t turn on the news or open your inbox without seeing a fearful headline these days, ranging from slightly unsettling to downright depressing. That reality extends to all spheres, including real estate. But, what’s really going on? The only way to find out is to check in with those strongly in tune with the industry.
Even people living far from New York City have interest in real estate there as it’s one of the world’s biggest, and most luxurious, markets with major impact. So, we asked top NYC agents for their insight into how politics and the economy have been affecting real estate this year as well what they’re most excited about in the city right now.
How has the political and economic landscape of the country, and the city in particular, influenced NYC real estate this year?
Peter Zaitzeff of SERHANT.: Interest rates, stock-market movement and political uncertainty have made buyers more thoughtful, but they have not eliminated demand. New York real estate continues to be viewed as both a long-term investment and a stable store of value, particularly by domestic and international purchasers. Locally, new taxes and policy discussions surrounding high-value and non-primary residences have created additional questions for luxury buyers. However, sophisticated purchasers are evaluating the full cost of ownership rather than reacting to a single headline. Ultimately, confidence, liquidity and quality continue to drive the market. When an exceptional property is properly priced, buyers are still willing to transact despite broader uncertainty.
Mike Fabbri of The Agency: Lots of uncertainty around interest rates, politics, new tax policies, which always makes buyers more cautious, but it’s a lot of noise and mostly clickbait. The luxury market is resilient; that’s proven. We just need more inventory. People still want to live and own in New York City. That’s not going to change even if the headlines sometimes suggest otherwise.
On a lighter note, which NYC neighborhoods or new developments are you most excited about right now, and why?
Zaitzeff: I am particularly excited by the continued evolution of Fifth Avenue and the Flatiron–NoMad corridor. Fifth Avenue is becoming a true residential destination, with Mandarin Oriental Residences offering an especially compelling combination of location, design, dining and five-star services. It provides the ease of hotel living while remaining a private condominium. Farther downtown, Flatiron and NoMad continue to attract buyers because they offer exceptional architecture, restaurants, culture and access to virtually every part of the city. New developments in these neighborhoods are also becoming more thoughtful—fewer residences, greater privacy and a stronger emphasis on craftsmanship and livability rather than amenities simply for the sake of amenities.
Fabbri: Downtown—Gramercy and Greenwich Village, and West Village because inventory there is so limited and very difficult to replicate. There are some gorgeous new development buildings coming up, like 38 Gramercy Park East (the first new development on Gramercy Park in decades) and in the Village, like 80 Clarkson, 26 West 9th. These are so special because there are so few opportunities to build in these neighborhoods. I’m also especially excited about the Upper East Side townhouse market. I have something special launching this fall.
