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Rising Rates & Public Transportation Take a Bite Out of Big Apple Housing

High-priced Manhattan properties will likely decline in value in 2017, as mortgage rates creep up. Certain boroughs have their own issues as well.  Print

Brooklyn and Queens’ sales markets will see slower paces of growth as well, with the Bronx projected to see sales prices decline in 2017.

As the sales market slows and rents continue to rise, more New Yorkers will become homeowners in the coming year.

Transportation shake-ups are anticipated around the city, including the temporary closure of the L-train and the long-awaited opening of the Second Avenue subway. These changes will transform neighborhoods’ public transportation availability, playing an integral role in renters’ and buyers’ moving decisions over the next year.

Bronx’s Kingsbridge tops StreetEasy’s list of NYC’s hottest neighborhoods in 2017

According to the StreetEasy Hot Market Index, Kingsbridge in the Bronx will be the hottest neighborhood of 2017, but Brooklyn neighborhoods dominate the rest of the list.

StreetEasy’s 2017 Predictions

• Manhattan sales market will recalibrate. Manhattan’s median resale price will have the slowest growth of all boroughs as oversupply in the luxury tier weighs down the market. The Bronx will be the only borough where resale prices will decline, falling 1.4 percent over the next 12 months.

• Little relief for NYC renters. Median rents are expected to rise across all boroughs and continue to outpace income growth in the coming year. Shrinking tipping points – the number of years it takes for buying to make more financial sense than renting – and rising rents will drive prospective buyers to evaluate homeownership.

• Transportation – or the lack thereof – will transform neighborhoods. Neighborhoods where transit options are being added – like Yorkville and Hudson Yards – and neighborhoods where transit is temporarily halting – like Williamsburg’s L-train – will receive an influx of interest as New Yorkers seek either a more convenient commute or a bargain.

• Bronx’s Kingsbridge tops StreetEasy’s 2017 hottest neighborhoods list. According to the StreetEasy Hot Market Index, which ranks the city’s neighborhoods using a series of key performance indicators, Kingsbridge came out on top. Brooklyn neighborhoods dominated the list, occupying six out of the 10 spots.

Ranking Neighborhood Borough

1 Kingsbridge Bronx
2 Fort Greene Brooklyn
3 Bath Beach Brooklyn
4 Prospect Lefferts Gardens Brooklyn
5 Bayside Queens
6 Yorkville Manhattan
7 Gowanus Brooklyn
8 Prospect Park South Brooklyn
9 Boerum Hill Brooklyn
10 Astoria Queens

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