By Mark Hallum
StreetEasy has released its annual list of “NYC’s Hottest Neighborhoods in 2017” with Bayside coming in at No. 5 out of 10 and beating Astoria, which came in dead last as the only two in Queens to make the list.
The real estate data base uses sale and rental prices mixed with buyer trends to predict where young and trendy residents will likely end up in the coming year.
Median resale price for homes in Queens came out to $339,717 with a projected 4.4 percent resale growth in 2017. The median rent in Queens is expected to rise 2.4 percent to $2,444 for 2017.
In Bayside, $438,000 is the median asking price for homes and $2,250 is the median rent.
To buy in Astoria, the asking price will likely be around $795,000 in 2017, while rent may be around $2,295, the survey said.
These numbers mean people are more likely to buy than rent since mortgages are cheaper to carry than rent, and resale projections mean homeowners can expect a return if they choose to relocate.
“The oversaturation of luxury inventory in Manhattan left the high-end buyers and sellers with a hangover,” StreetEasy economist Krishna Rao said. “The next year will show the market recalibrating after this luxury inventory overload, which could be good news for buyers who can afford to live in Manhattan. We will see even more price cuts in the borough as sellers adjust to the new state of the market.”
Though wages and salaries are on the rise throughout the city, they do little to keep up with the skyrocketing rental prices in Manhattan. The minimum wage will increase for city dwellers from $9 an hour to $10.50 on Jan. 1, according to the state Dept. of Labor. Rates will differ for workers in other parts of the state.
“The minimum wage is increasing and incomes are inching upwards, but it’s an uphill battle when rents are already so high across the city. For those who have saved for a down payment, we expect to see more people – especially millennials – taking advantage of a slowing sales market and buying homes as rents continue to rise,” Rao said. “Especially for those who plan to live in an apartment for more than a few years, the investment could pay off sooner than it has in the past. The majority of neighborhoods had a tipping point of less than five years in November – that’s half the time it takes to become a ‘real New Yorker’ as the expression goes.”
Transportation will also play a role which neighborhoods get the most attention.
Yorkville represented transportation demand best with the Second Avenue subway expected for completion Jan. 1. Seven of the neighborhoods that made the list are in Brooklyn and only two in Queens. Kingsbridge in the Bronx came in at number one.
Reach reporter Mark Hallum by e-mail at mhall