The best NYC neighborhoods to invest in 2019
Looking to invest in New York City real estate? Even if sales on new developments have reached their lowest point in 4.5 years, interest rates are also at their lowest point in years, and resales are hitting new records for median sales prices. Indeed, after increasing for the eighth consecutive quarter, the median resale price in New York has reached a new record, $997,750.
To make a good investment in such a market, it’s essential to do your research to pinpoint the best neighborhoods where you’ll get the best value for your money. One strategy is to stick to the well-known neighborhoods, and invest in stable properties, but another one is to go for the lesser-known areas, which have been offering enormous growth rates in recent years and plenty of potential for substantial future profits.
However, trying to identify the up and coming areas can prove quite overwhelming and daunting when you’re not a real estate expert. Fortunately, we are here to help: below is our round-up of the top 6 best NYC neighborhoods to invest in this year.
Upper East Side
One of the most exclusive and desirable neighborhood of Manhattan, the Upper East Side has always been attractive to investors, and prices recently dropped to the lowest they’ve been in a decade. While the median sales price stood at $960,000 in 2019 Q1, this figure jumped to $1.4 million in Q2. However, thanks to a huge real estate inventory, it is also possible to find a property for way less. It is for instance doable to buy studio co-op apartments for under $300,000, as long as you’re ready to act quick as sales tend to move fast here.
Buying in the Upper East Side means buying a brand, with many celebrities and business superstars choosing to stay there. This makes it the ideal neighborhood to invest in a stable property, a safe bet in an area with excellent schools, high-quality restaurants and entertainment venues.
Hudson Square
Located between West Houston Street and Canal Street in Lower Manhattan, Hudson Square is a neighborhood known for its affordable luxury, offering a mix modern condo buildings, townhouses and brick factories. Historically known as an industrial district, it’s now becoming a real tech campus, with Google planning to run its primary New York headquarters from there by 2020.
With a current median sales price of $2,416,983, increasing 8% year-over-year, Hudson Square is still way below the neighboring areas of Tribeca, SoHo or Greenwich Village, but it shouldn’t be the case for long. With dozens of development in the works and more people moving in, prices are expected to drive up, giving great returns as an investment if you’re able to get in soon.
Chelsea
Home to many of the most gorgeous brownstones in the city, Chelsea is a well-established favorite, with some of the most expensive real estate on the island of Manhattan. It’s easy to see why: the area has a nice calm residential atmosphere, while still offering plenty of amazing culinary and shopping experiences. There are also great transport options, making it really easy to go to and from almost any point in the city.
There has been a price increase of 24.1% in the last five years, but the nearby Hudson Yards project has been driving prices down, making it an excellent time to invest here, if you have the funds to do so. Indeed, the current median sales price in Chelsea is $1,175,000, which represents a 6% increase over the last year, and is expected to rise even further.
Murray Hill
Located between Madison and First avenues, Murray Hill represents “better values in Manhattan”. Prices in this neighborhood have been growing steadily, with an increase in median price of 66% in the past five years.
Several new luxury developments are being built in Murray Hill, such the American Copper project on First Avenue, featuring a three-story skybridge. As it is public knowledge that developers do not invest without spending a lot of time researching the potential return on investment, it seems that the area will bring good return and represent a future boom in value.
Bushwick
Previously an industrial center, Bushwick in Brooklyn is now popular with artists, partygoers, but also students and young families. Many praise its small-town vibe with plenty of small business and public parks, but also many bars and restaurants along Knickerbocker Avenue.
The exodus of Manhattan residents to the borough has definitely created an increase in prices for the real estate stock, mostly in Williamsburg to start with. However, Bushwick is now catching up with its neighbor. It’s easy to see why, as the average rent is around $2470 for two and three-family row houses, which is about $530 less than Williamsburg.
The area is especially popular for renovation projects, which can be sold for a nice profit once the work is finished.
Carroll Gardens
Carroll Gardens in Brooklyn also exudes a charming village atmosphere with typical brownstones and lots of greenery. It is particularly popular with families, thanks to the excellent level of schools in the area. With its bilingual precursor French English program for over 10 years, P.S. 58 The Carroll attracts many French families. It is also an ideal neighborhood in terms of transport, Manhattan being half an hour via F and G trains.
Carroll Gardens is also a relatively affordable neighborhood in Brooklyn, cheaper than neighboring Cobble Hill and Brooklyn Heights. The value of goods has remained stable even during the last recession, making it an excellent long-term investment.
Kingsbridge
Located in the Bronx, which still offers some of the lowest median home values in New York, Kingsbridge is however far from the unsafe streets and gloomy atmosphere that used to be associated with the area. With close proximity to subway lines, a 30 minute commute to Manhattan, great restaurants, and good-quality public schools, the neighborhood has a lot to offer, including some popular attractions such as the Bronx Zoo and the New York Botanical Gardens.
With rents increasing in Kingsbridge faster than anywhere else in the city, it’s easy to see why many developers have decided to launch new projects in the area, making it an ideal option for buy-to-let investments, but also rehabbers.
Interested in starting your search in one of this neighborhood? Call us and let’s talk!