NY Developers Have Been Hyper-Focused On The Ultra-Luxe Market This Cycle
The latest cycle of New York real estate has been even more focused on ultra-high-end residential development than you might’ve thought.
Average per-unit prices at new residential developments dwarfed those from the last cycle, for example, even though fewer were being built.
An analysis of residential development offering plans filed with the Attorney General’s Office, performed by The Real Deal, shows that in 2014 the yearly average of per-unit prices hit $3.3M, compared to a pre-crisis peak of $1.7M in 2008.
Of the biggest projects this cycle, 16 have average per-unit prices between $5M and $15M, compared to 12 during the last cycle. The number of smaller projects in lower price ranges is much lower this cycle, however.
The AG's office reports developers filed for just 160 resi projects with 40 units or more since 2010. In the last cycle, 2002-2007, that number was 434.
The slump in the ultra-luxe market produced by that oversupply probably won’t be letting up anytime soon either—as Bisnow recently reported, the number of ultra-wealthy individuals able to afford units at the top of the market has dwindled since last year. [TRD]
