Homeowners associations looking to boost the value of their block might want to ask Taylor Swift to move in for a spell, as a new report suggests that the singer and other celebrities have the power to increase neighboring property prices in New York City.
A block-by-block study of Manhattan and Brooklyn townhouses found prices on, say, East 10th Street in the East Village carry a 67% premium over the average—value added thanks to the density of celebrity residents that include David Schwimmer, Molly Ringwald, Mary-Kate Olsen and Olivier Sarkozy, according to the report released Tuesday by Leslie J. Garfield, a brokerage specializing in luxury townhouses, in partnership with research firm DataLoft.
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The report, which looked at property prices over the past decade, attempted to pinpoint reasons why some blocks saw such significant premiums and price growth. Aside from the appeal of living next to the likes of Sarah Jessica Parker and Leonardo DiCaprio, the report correlated other factors influencing townhouse price premiums, including living next to a Michelin-starred restaurant, a top museum or gallery, a park, body of water and an elite school.
"What is even more fascinating is how areas that encompass several of these desirability factors have seen meteoric rises in average sales prices," said Jed Garfield, president at Leslie J. Garfield & Co.
Mr. Garfield pointed to the streets between Fifth Avenue and University Place in Greenwich Village, a crossroads for celebrity owners, Michelin-awarded restaurants like Gotham Bar and Nix and the New York University campus. That neighborhood has "seen average sales prices soar from $3.9 million in 2006 up to $19.9 million, representing a remarkable 410% growth" in 10 years.
The age-old draw of a good school is just as strong in New York City. The report’s authors thank the upscale all-boys Collegiate School on West 78th Street on the Upper West Side—the alma mater of John F. Kennedy and Mark Ronson—for the marked 24% price premiums found for townhouses on nearby West 71st Street.
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The brokerage said the number of young house hunters drawn to neighborhoods because of certain restaurants has increased, too. For instance, the stretch of East 19th Street south of Gramercy Park—steps from Michelin-rated Casa Mono and ABC Kitchen—commands a 45% price premium over the city average.