2018 will be year of the renters, StreetEasy predicts
The real estate marketplace’s crystal ball sees transportation driving demand, luxury’s new low, falling rents and rising concessions.
We’ve heard countless politicians and advocates say public transportation is the lifeblood of New York City recently, but is it — and its near-daily issues — so important to New Yorkers that it affects the real estate market?
Yes, according to StreetEasy’s newly released real estate predictions for 2018. In fact, changes like the impending L train shutdown in 2019 and the expanding East River route of the NYC Ferry have already affected prices, but the real estate marketplace anticipates an even greater impact in the New Year.
“The city’s reliance on an aging transportation infrastructure will face tough tests in 2018, but buying in a rapidly changing neighborhood along a major commuting corridor will remain one of the best bets in city real estate,” said StreetEasy Senior Economist Grant Long. “Traditionally, that has meant the train, but with an expanded fleet of ferries on the East River, we also expect more New Yorkers to take to the water on a daily basis.”
Rents within a 10-minute walk of the Atlantic Avenue, Greenpoint and Astoria stops of the NYC Ferry have sailed up 1.5 percent faster than the broader area of those neighborhoods, StreetEasy found.
As for neighborhoods along the L train, which will be shut down between Brooklyn and Manhattan for 15 months starting in April 2019, rents have already seen a steady decrease, especially in North Brooklyn, StreetEasy said back in April.
While the development of luxury buildings will continue, prices are expected to hit a new low in 2018 as the number of available units will “far outsize the number of eligible buyers,” StreetEasy prognosticated.
“With next year’s building boom promising to expand luxury market woes at the very top of the market, 2018 will mark slow price growth across multimillion-dollar price points and a landscape in which high-end buyers enjoy the upper hand in negotiations,” Long said.
StreetEasy expects to see more competition for homes under $1 million than ever before, which will cause some buyers to, perhaps for the first time, consider the outer boroughs to stick to their budgets.
A slew of new buildings will keep rent increases at bay, StreetEasy said, allowing potential tenants to have a “negotiating edge” — and maybe consider moving if they see a deal they just can’t refuse.
“For renters, 2018 is your year,” Long said. “The combination of ever-present landlord concessions and rents growing at a snail’s pace will cause the market to sway more heavily in favor of the renter.
“Even renters happy with their current home should do their research and ask for a deal before renewing their lease,” he added. “Check comparable listings for the pulse of the market in your neighborhood, and don’t shy away from asking landlords for a month free or negotiating a lower rent.”