The choice of a neighborhood depends on many factors apart from what you can afford. Neighborhoods come and go in fashion, which can easily be tracked by counting how many headline restaurants are opening, where the cool retail is and where your friends hang out. Yet determining which neighborhood will increase your net worth is a little trickier. Here are my tips and the neighborhoods to watch in 2023.
The Corcoran Group did a ten year study measuring which neighborhoods appreciated the most from 2012 to 2021:
- The winners: Morningside Heights and Hamilton Heights recorded a 13.8% increase in the average price.
- Midtown West and the West Village clocking in at 13.5% each. Arguably much of this was due to new construction built in these neighborhoods, increasing desirability and sales volume.
- Meanwhile Soha and Nolita, once white-hot neighborhoods, only delivered a 0.9% increase over the decade.
If you are looking to purchase in a neighborhood which will maximize the value of your investment and increase your net worth, here are some suggestions:
East Harlem has seen quite a bit of new development over the past few years. Streeteasy reported that the number of searches increased by 42% in 2022. This may be due to popular new developments like 181 East 101st Street, yet more is to come. Recently there were no fewer than 30 buildings in various states of planning and construction slated for East Harlem.
The Eastern half of 125th Street in particular is set to undergo a massive renovation with two huge buildings slated to be built near the 125th Street Metro North Station. The Q Train extension was approved with new stations planned for 106th Street, 116th Street and 125th Street, according to the MTA website.
Apart from easy transportation, parks and green spaces bring vitality to a neighborhood. The Manhattan Greenway Harlem River Esplanade will be complete by the end of 2025, bringing new connections to Randall’s Island and the south Bronx, while providing seven acres of a new park with playgrounds, picnic areas, and BBQ. If you are looking for a long-term investment, consider East Harlem.
Learn more about Harlem for the holidays
Turtle Bay. Could this unfashionable neighborhood have finally manifested the trendy notion of a 15-minute neighborhood? It has seen a vigorous increase in sales this past year with the average price per square foot increasing 32% in the third quarter of 2022 reaching $1,762 per square foot. Despite the increase, there is still value when you consider the overall average price per square foot in Manhattan is $1,877.
Much of the increased demand for the neighborhood has been attributed to buyers who want to walk to work and not depend on public transportation. You can find luxury living with river views at The Champalimaud, located at 138 East 50th Street.
Turtle Bay also offers more affordable and well-maintained condominiums such as 630 First Avenue and The Corinthian on East 38th Street. The blocks adjacent to the river experienced a revival with the JDS American Copper Buildings, which have ground level retail. Here you can pick up a coffee or meal to go then head to the NYC Ferry to Williamsburg or Wall Street. Looking to go further than that? You can also board the Seastreak which will carry you on a high-speed ferry to Martha’s Vineyard or Nantucket.
Kips Bay is just south of Turtle Bay and possibly more maligned for being unfashionable than its neighbor, yet it is also adjacent to the hot and trendy Nomad neighborhood. You can have easy access to great restaurants and entertainment without enduring a high monthly housing payment. Of the 87 active listings on the market at the very beginning of 2023, the median price in Kips Bay was $1,379,000, giving you a two bedroom, two bathroom with a balcony. The average price per square foot was $1,439, which isn’t bad for being walking distance to Quality Eats or The Nomad. Venture closer to your favorite eateries in your housing quest and the median price in Nomad hovers near $4.5 million.
If you are curious about harnessing these trends to your advantage, reach out to me today. I would be happy to help you create a strategy for success.