StreetEasy identified 10 NYC neighborhoods where buyers have more negotiating power in 2023

The spring home-buying season is approaching, and more New Yorkers are returning to the market. This year, homebuyers face multiple challenges, including elevated mortgage rates and low inventory. Although the New York City housing market will likely see strong competition this spring, there are still some neighborhoods across the city where buyers could score a great deal. 

New Yorkers looking to buy a home could take advantage of the new report published by StreetEasy. The real estate listing platform released a list of the top 10 NYC neighborhoods where buyers have more negotiating power. In the fourth quarter of 2022, these neighborhoods saw the biggest increase in the share of listings that went through price reductions. In addition, apartments listed for sale in these areas also stayed on the market for longer. 

StreetEasy identified four neighborhoods in Manhattan where buyers could have the upper hand. In the last four months of 2022, 31 percent of apartments listed for sale in Yorkville reduced their asking prices, up 11.4 percentage points from a year ago. This Upper East Side neighborhood had the highest share of listings that went through price reductions. The median asking price in Yorkville was $1.1 million, with listings staying on the market for an average of 98 days. 

Manhattan’s Lower East Side, Hell’s Kitchen, and Washington Heights also made the top 10 list of the best neighborhoods for homebuyers. Apartments listed for sale in these neighborhoods spent at least 99 days on the market, and at least 23 percent of them had to reduce their asking prices. The StreetEasy report suggests that the moderate competition among buyers in Manhattan is likely tied to the drop in affordability due to the rising mortgage rates.

“Many buyers with larger budgets have turned their focus from Manhattan to “brownstone Brooklyn” neighborhoods like Carroll Gardens, Park Slope, and Boerum Hill, which can provide more space in historic townhouses and newly developed condos, and a wider range of amenities,” the report reads. “However, this shift opens up a major opportunity for would-be buyers to secure a deal in traditionally sought-after Manhattan neighborhoods.”

Neighborhoods in South and East Brooklyn, such as Midwood, Fort Hamilton, and East New York, are also great choices for homebuyers. They offer more space for a lower cost per square foot. In addition, Williamsburg also made StreetEasy’s list of the top 10 neighborhoods for buyers. By the end of 2022, the demand for apartments in this traditionally-popular neighborhood slowed down, giving prospective buyers more room for negotiation. 

Resources:

“Top 10 Buyers' Markets in NYC Right Now,” by Kenny Lee (StreetEasy, 2023)