How to Capitalize on New York City’s Evolving Market

If you are planning to invest in real estate in New York, your first step will be to pinpoint the most ideally situated neighborhoods where your hard-earned money can work for you. Under normal conditions, the process of identifying these markets primed for growth starts with searching for the areas where the sales have dropped off and more recently developed properties are still up for sale. Unfortunately, the ongoing pandemic has dramatically altered the New York real estate market—a factor that investors will have to account for when making investment decisions.

Although the New York market has and will continue to evolve, investors can still identify and capitalize on emerging trends. One key development is how the coronavirus has forced many New Yorkers to reevaluate their living preferences. More and more tenants are demanding the privacy offered by townhouses and turnkey developments as opposed to large, full-service buildings featuring communal amenities—and even more are leaving the city altogether where they can get more square footage for their dollar and escape their former crowded urban existence.

Some real estate experts have predicted that the suburban migration will be temporary and buyers will return soon to the city. But exactly where will they prefer to live and what existing neighborhoods offer the best suited investment opportunities for the future? Here is a breakdown of some of the top neighborhoods to focus your investment strategy on that the data hints may be booming in the months and years to come.

UPPER EAST SIDE & YORKVILL

A lot of potential homebuyers and tenants are keeping a close eye on the Upper East Side as it features tons of co-ops—which have proven to be more resilient in times of economic instability due to the intensive application requirements and liquidity needs—as opposed to areas that are dominated by condominium buildings like Williamsburg where the majority of stakeholders are over-leveraged financially. The Upper East End allows for relative stability as well as in-demand green spaces, great schools, accessible transportation and a vibrant social scene. Additionally, the expansion of the Second Avenue subway line has made communities such as Yorkville more realistic options for buyers. With Central Park nearby to the west and Carl Schurz Park just off to the east, the Upper East Side could be a key market for those desiring a return to city life as the virus continues to recede.

CHELSEA

The new Hudson Yards construction has garnered attention on the bordering communities including Chelsea, a neighborhood that savvy investors may be able to tap into the brand-new condos. The local market is oversaturated in terms of inventory, a factor that is functioning to drive property values down in Chelsea. This means that opportunistic investors may be able to find a great deal on essentially any property type, whether it be an owner-occupied listing or rental unit. Additionally, the newly built condos are brimming with in-demand amenities that will be appealing to younger tenants and homebuyers.

BAY RIDGE

Boasting roomy residential streets with expansive green spaces, Bay Ridge has a quasi-suburban air about it. For years, the long commute has discouraged would-be buyers from considering the Bay Ridge area, but now the neighborhood features direct ferry service to Wall Street. With more and more ex-New York City residents seeking space, the Bay Ridge and Fort Hamilton localities are hard to beat. These southwestern Brooklyn community have several one-bedroom apartments available, with many of them featuring more square footage than the average city unit with the added plus of outdoor spaces and driveways—all in a manageable commute to the city and all it has to offer without the hefty price tag.

Express Capital Financing is a nationwide private lender based out of New York and New Jersey. If you are looking to expand or do work in the New York market, they are a trusted and well known lender that can guide you throughout the entire lending process.