The 2010s: A Decade of Incredible Growth in Manhattan’s Luxury Market
As we look ahead in 2020 with the prospects of a new year and a new decade, it’s hard not to reflect on what happened in the past decade. There is no doubt that the 2010s were exciting times in the Manhattan real estate market, especially when it comes to the city’s luxury home market.
A recent article on TheRealDeal.com revealed some truly staggering facts and figures about luxury condominium developments and real estate sales from 2010 to 2019.
A Rise in High-rises
First, let’s look at new condo developments. More than 16,200 new condo units have been built in New York City since 2013. Sales prices have increased dramatically everywhere. Just last year, a condo at 220 Central Park South set a new United States record by being sold for $240 million to Citadel founder, Ken Griffin.
Here are are few other numbers that might blow your mind:
• From 2000 to 2009, there was only one luxury condominium sale in New York over $50 million.
• From 2010 to 2019, there were 64 condo sales over $50 million.
• In the city’s $20 million-plus market between 2000 and 2009, there were exactly 100 sales.
• Between 2010 and 2019, there were 489 sales of condos over $20 million.
Why Such a Boom?
Naturally, inflation and economic growth are part of this major increase in New York luxury home sales and prices. The nation’s real estate market crashed in the previous decade, with 2008 being the worst year after the sub-prime mortgage fiasco. However, the crisis that affected most average American homeowners didn’t impact the luxury homeowners quite as much. This data shows that it really didn’t take that long for the Manhattan luxury market to not only recover, but thrive!
Buyers’ expectations continued to go up and it was clear they were willing to pay plenty of money for the highest standards of living. Developers and architects continued to push the envelope with more impressive designs and luxury amenities. Wealthy buyers expected the best and that’s what developers gave them.
Check out a new luxury development that we are currently representing: 200 East 59th Street
What Happens Next?
As we head into the 2020s, it seems that this period of growth has slowed down and leveled out some. Prices aren’t going up at the same rate. Other factors like New York’s new Mansion
Tax and increased property transfer fees are also having an effect on how quickly these high-end homes sell for. It will be interesting to see how the luxury market reacts.
Don’t get us wrong, we expect prices to continue to go up in conjunction with inflation and overall economic growth. Developers will keep developing, but maybe not quite as aggressively. Mortgage rates are also staying at record lows, at least for the foreseeable future. Right now, it’s definitely a buyer’s market as we outlined in our latest “2020 Vision” blog article.
No matter what the future has in store for Manhattan’s luxury real estate market, it is fascinating to look back at what an exciting decade we just went through. The 2010s may have forever changed New York real estate and we’re excited to be a part of it!
If you are buying or selling luxury real estate in Manhattan, Tom Postilio and Mickey Conlon are the expert real estate team to trust. They specialize in New York’s luxury market and know how to help you make the right moves. Contact Tom & Mickey today and see how they can make a difference for you.