Brooklyn And Queens’ Real Estate Sub-Markets Continue Their Ascent To The New Heights
Brooklyn has long won the title of the most unaffordable real estate sub-market in the country. Now it really is competing against itself.
So, the sales prices in Brooklyn and Queens hit record highs. Again. Just like they did in December 2016 and at the end of this year’s first quarter. Brooklyn and Queens’ ascent to the new heights real estate-wise isn’t really an event—but an ongoing process. What else is new? Well, yet another record-breaking milestone has been passed—the average Brooklyn townhouse price has officially reached a $1.1 million. Apartments are getting there, too—the median price apartment price increased nearly 21 percent to $795,000.
Brooklyn has long won the title of the most unaffordable real estate sub-market in the country. Now it really is competing against itself, taking its own unaffordability to the new heights. As they say, it’s lonely on the top, so Queens followed the trend just because it is, well, close enough to Brooklyn.
Yep, that’s right—prices in Queens have increased by nearly 10 percent—the median price in Queens is now $510,000. And the reason why they are doing so is the the called “spillover” effect. Brooklyn’s hot market pushes Queens’ prices. If you think about, it would make a great Chuck Norris-like joke. Brooklyn’s market is hot that… prices rise in Queens. Or just include your own version—we are pretty sure there is a huge pun potential in this phrase.
“Brooklyn has become the new Manhattan, while Queens has become the new Brooklyn,” said Steven James, CEO of the Douglas Elliman. “It’s like falling dominoes.” Good point about dominoes—considering how many potential home buyers are now scavenging Bronx in search of remotely affordable deals. According to James, “there’s been a surge in interest in towns in Westchester County, and more house hunters looking at Riverdale.” With that pace, we might just see the times when the “new Manhattan” baton will be passed to New Jersey. Oh the horror.
On a serious note, these concerns are premature at best. Brooklyn’s and Queens’ prices might be growing even more—at least for a while. When should we expect an inflection point? Hard to predict. Here’s what Jonathan Miller, the author of Elliman report, has to say on the subject, “In many ways what’s happening in Brooklyn and Queens is what’s happening in suburban America: chronic inventory shortage and rapidly rising prices. At some point it has to level off.”
Don’t hold your breath waiting for these home prices to plummet any time soon though. As Miller points out, there is still plenty of room to grow in these boroughs. “I don’t think we give enough credit to how powerful this ‘Brooklyn phenomenon is,” he says.
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