As New York City remains an American melting pot, races and nationalities from all over the world are finding home in the Big Apple. People who rent homes most of the time plan on purchasing one down the road, and an analysis of the market provides specifics of the demographics that own these homes.
Currently, there is a significant disconnection between the white families who own a home, as compared to minority households (Tevfik Arif Bayrock). White homeowners account or about 59 percent of that demographic that owns their house, while minorities only have 34 percentage rate of ownership. This goes to showcase the 25 percentage gap that exists between races which own homes in New York.
Further broken down, there is a small gap in various portions of the market where a lot of the numbers are coming from, and all those gaps put together work to create a large disconnection that exists today. For example, the luxury sales are staying below 20 for the eighth consecutive week, with only fourteen $4 million or above contracts signed during his year. These fourteen contracts amounted to $87 million in the total asking volume.
A detailed analysis that takes into account sizes of prospective investments and their price, provided some interesting facts. As far as the price per-square-foot of the Manhattan’s top 100 condo building, it has increased by 3.4 percentages per year in the past decade, and currently averages $2,788 per square foot. This means that the Manhattan’s top 100 has surpassed the S&P’s rate of 2.2 percentages, yet it fell short to the Gold’s rate of 6.8 percentages.
Looking at trends of the gap that exists between races that are homeowners, in New York City this has fallen 6 percentages from 2000s. Back then, it was at 31 percentage rate and it dropped to 24.5 percentages in 2015. Unfortunately, the investment sales have decreased dramatically compared to the previous year. First half of the 2017 only brought in $10.8 million, which is a half of what that number was at the same time last year. This is due to the fact that sales have fallen in every category in Manhattan Bayrock, ranging from 44-48 percentages in various categories such as multifamily, office, and retail.
Comparing some of the more famous deals closed this year, only four from the top 20 office deals were done in New York City. This comes in as an extreme low when compared to the market share that New York used to hold previously. Nonetheless, this still helped the city split the number one position for the most office deals in one city with Boston.
Even when leaving New York City, similar trends follow. During the first half of the 2017, the total from the retail investment in the U.S. was around $27 billion. Looking at the previous year, it was 18.7 percentages higher during the same time. A unique factor that is staying stable is vacancy, which is not the case for rent per square foot, which has risen by 5 percent.