Midnight on Dec. 31, 2014, bystanders will crowd the streets around Times Square to watch the ball drop and usher in the new year. But where will those people decide to spend their next year in the Big Apple?
StreetEasy released its housing predictions for the 2015 New York City real estate market, citing what it predicts will be the 10 hottest neighborhoods in 2015.
The company scored every neighborhood based on annual growth in median asking rent and actual sale price of homes, as well as its 10-year growth in population — three indicators of increased demand to live in a specific neighborhood.
Without further ado, here’s the list:
10. Morningside Heights, Manhattan
9. Prospect Park South, Brooklyn
8. Spuyten Duyvil, Bronx
7. NoMad, Manhattan
6. Fulton/Seaport, Manhattan
5. Jamaica, Queens
4. West Harlem, Manhattan
3. Battery Park city, Manhattan
2. Vinegar Hill, Brooklyn
1. DUMBO, Brooklyn
“Vinegar Hill, a tiny enclave next to the Brooklyn Navy Yard, known for its industrial feel, is attracting a lot of interest. Vinegar Hill’s median sale price rose nearly 40% in the last year and rents have also edged up 9%,” said Alan Lightfeldt, StreetEasy data scientist.
Meanwhile, Lightfeldt added, ”Spuyten Duyvil, just across the river from the very tip of Manhattan, is the only Bronx neighborhood on our list and looks to be a very popular destination for renters. Although the median asking rent of $2,100 was well below the city’s median, it grew by nearly 23% in a single year.”
Click the next page for the top predictions.
Hint: It includes the top two boroughs for for-sale inventory growth in New York City.
1. Manhattan condo sales prices will increase at half their 2014 pace.
“In 2015, Manhattan condo sales prices will continue to rise, but at a considerably slower and much healthier pace. According to the StreetEasy Condo Price Forecast, condo prices will grow by 3.9% by the end of 2015, roughly half the pace we saw in 2014 (7.8%), which will provide some much needed relief to buyers,” Lightfeldt said.
2. Brooklyn and Queens will see the most for-sale inventory growth in New York City.
“2014 marked the fifth consecutive year of total inventory declines in Manhattan, and this multiple-year deficit is unlikely to be corrected in a single year. Across the East River in Brooklyn and Queens, however, inventory is poised to grow considerably. In 2014, the number of homes for sale grew by 8.6% and 8.5%, respectively, and we expect this growth to continue. Next year, we expect a far more competitive landscape in Brooklyn and Queens as more buyers get squeezed out of the Manhattan market and look eastward,” Lightfeldt said.
3. Brooklyn will be the most unaffordable borough for renters
“For the 66% of New Yorkers who rent, the costs of housing will continue to command a large share of incomes in 2015. Rents will be the least affordable in Brooklyn, where the median asking rent in 2015 is expected to amount to more than 60% of the borough’s median household income. The affordability outlook is only slightly better outside of Brooklyn. In all of the boroughs except for Staten Island, rent is forecasted to command more than 40% of household incomes in 2015, pointing to a challenging market ahead for New Yorkers,” Lightfeldt added.