Looking for an apartment in Manhattan? Good luck. Crain’s New York has built a handy five-step breakdown of the issues facing buyers the Big Apple’s premier borough, and it all goes back to one point: inventory.
Of the borough’s 850,000 apartments, just 5,200—or 0.6%—were available for purchase in the first quarter of 2015. That severely limited inventory pushed the median sale price of apartments above $1 million. Owners remain hesitant to sell because of the daunting prospect of leaving the island or buying into the same tight market, or, in the case of investors, finding a better place to park their money.
What does the future hold for house hunters in Manhattan? More of the same. Escalating development costs are likely to keep property prices high, while the borough’s vibrant rental market (75% of apartments are rentals) will likely keep the for-sale inventory low. On the other hand, the publication notes that the high prices could boost inventory by pushing sellers off the sidelines. [Crain’s New York]