DEEDS & DON’TS
STRENGTH IN NUMBERS
Inflation? Recession? Rising mortgage interest rates? Despite financial volatility and political uncertainty, New York City real estate prices have shown few signs of letting up in recent months. Although contracts began to dwindle in the second quarter of 2022 over the same time last year, the median sale price of Manhattan condos reached a record high of $1.25 million, and the average sale price jumped 12.1 percent, to $2.15 million. “It has been especially tough for buyers looking in the $10 million to $20 million range,” says Compass’s Vickey Barron. “Many of them are people who left the city during the pandemic, became accustomed to larger houses with yards and garages, and are now having trouble finding something comparable upon their return.” Historically undervalued neighborhoods, such as NoMad and Murray Hill, she adds, have become more popular among young professionals, who appreciate the easy commute to Midtown offices. A similar story is unfolding on the other side of the East River in Brooklyn, where “prices have increased across the board,” says Douglas Elliman Real Estate’s Lindsay Barton Barrett, who notes lack of supply as the trend’s key driver. By the end of the second quarter, appraisal firm Miller Samuel reported records for the seventh quarter in a row among the
borough’s condos and multi- and single-family brownstones, and the year-over-year average price of brownstones had jumped 15.6 percent, to $3.53 million. “Townhouses in Brooklyn Heights, Cobble Hill, and Park Slope are especially in demand,” adds Barton Barrett, who says that many of these properties are attracting first-time buyers who crave amenities like outdoor space and more square footage.
“Townhouses in Brooklyn Heights, Cobble Hill, and Park Slope are especially in demand” Rental rates have surged, too. According to Miller Samuel, the average Manhattan rental price broke the $5,000 threshold for the first time in June, and then crept to $5,113 in July. In Brooklyn, the average rental price jumped 16.8 percent, to $3,883, from July 2021 to July 2022. And a 70.4 percent drop in inventory and bidding wars in one out of four leases suggest that the market is likely to remain competitive in the months ahead.
To address the housing shortage, developers and political leaders are coming up with creative solutions. If legislative and real estate industry stars align, New York City’s pandemic-induced glut of vacant office buildings could be reincarnated as new housing. A 2021 study by the Real Estate Board of New York showed that converting just 10 percent of these buildings could yield as many as 14,000 residential units. In January, Governor Kathy Hochul proposed a five-year plan that includes legislation for more flexible zoning rules, which would make it easier to convert unused office buildings below 60th Street into residential properties. And Mayor Eric Adams is also on board, announcing in June his own promise “to ease conversions of underutilized commercial buildings into homes.” Some developers already have building conversions underway. Macklowe Properties is transforming a 51-story landmark Art Deco tower at One Wall Street into 566 luxury condos slated for completion by the end of this year. And Silverstein Properties and Metro Loft Management plan to convert a 30-story building at 55 Broad Street into 571 market-rate rentals ranging from studios to three-bedrooms. All promising signs of the city’s efforts to adapt to a new era. —Jean Nayar
THIS ISSUE’S
BIG
Presiding over Southampton’s Main Street, the impressive 12-bedroom manse known locally as “Barney Green’s House” has hit the market for $24.99 million. Sporting a mansard roof in the Second Empire style, the residence was built in 1872 by retired whaling captain Barney Green as a 40-guest boarding house. The 1.25-acre property has had only a handful of owners in the past 150 years, and many original details remain intact: notably leaded-glass windows, coffered ceilings, millwork, mantels, verandas, and a porte cochere. Harald Grant of Sotheby’s International Realty holds the listing. —Tom Edmonds
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cottagesgardens.com
october 2022
RICHARD TAVERNA/SOTHEBY’S INTERNATIONAL REALTY
DEAL