2021 recap

In 2020, New York City’s housing market experienced a significant drop in rents and sales prices. But soon, it began to quickly recover. In 2021, both sales and rental markets made a remarkable turnaround and, in some cases, exceeded their pre-pandemic numbers. 

The total number of home sales dropped to its lowest rate in April and May 2020. But then, it began dramatically increase and reached peak levels in August of 2021, the StreetEasy data dashboard suggests. In the third quarter of 2021, the number of closed co-ops and condo sales in Manhattan reached its highest rates in the past 32 years. 

The declining housing inventory and growing demand from potential home buyers have caused the city’s real estate market to rebound and become even less affordable. By the end of 2021, the home sale prices across the country reached a new all-time high of $361,171, according to the Redfin reports. In addition, more than 60 percent of homes listed on the market sold within the first two weeks. 

The sudden rebound was primarily driven by the luxury market. This year the most expensive property sold in New York City was at 220 Central Park South. Two units went for $157.5 million. Other priciest property sales included a $49.5 million apartment at 443 Greenwich Street and a $60 million co-op triplex at 2 East 88th Street. In 2021, many affluent renters and buyers returned to the city after temporarily relocating to the suburbs, which accelerated the real estate market recovery.

The New York State eviction moratorium ends on January 15, 2022, which leaves many residents wondering if they will be able to afford to keep their homes. The New York State Emergency Rental Assistance Program has helped 166,000 households pay rent and utility bills. Governor Kathy Hochul asked to add nearly $ 1 billion more to the program to assist more families. The recent spike in COVID-19 cases and the Omicron variant could potentially slow down the housing market. On the flip side, the demand for homes could increase if more people go back to working remotely.

Resources: 

“A Strong Ending in 2021 for Manhattan’s Luxury Market,” by Vivian Marino (The New York Times, 2021)

“In 2021, New York’s Housing Market Made a Stunning Comeback,” by Stefanos Chen (The New York Times, 2021)

“Manhattan Apartment Sales Surge to Three-Decade High,” by Stefanos Chen (The New York Times, 2021)

“Redfin Reports Home Prices Rise to New Record High,” (Redfin, 2021)

“StreetEasy Data Dashboard,” (StreetEasy)

“In a banner year for NYC’s luxury market, these 10 priciest sales led the way,” by Cordilia James (The Real Deal, 2021)

“Will COVID-19’s Omicron Variant Infect the Housing Market? Or Is Real Estate Immune?” by Clare Trapasso (realtor.com, 2021)

“Governor Hochul Announces New York State Requests Additional Federal Funding for Emergency Rental Assistance,” (New York State, 2021)