WaPo article on K-shaped recovery in housing

inonada

Well-known member
I track a market that is on the other side of the spectrum from rent stabilization, and the story on prices & inventory is the same.
 

inonada

Well-known member
The inventory at the high end has been move up steadily for the past few months. E.g., at $20K+, the low on StreetEasy early in the year was 95, and now it’s 170. In late 2020, it got as high as 370 IIRC.

I can’t decide whether that’s more inventory building up, or simply a push in asking rent from inventory that would have previously been priced lower. Probably a bit of both. Regardless, it’s a sign that people are no longer clearing out new inventory at that price point with the same gusto as late 2021.
 

David Goldsmith

All Powerful Moderator
Staff member
I do think you're underplaying the staggering amount of units being kept vacant on purpose. But also it sounds like by your reasoning if we do have the recession some are predicting the rental market will repeat 2020?
 

David Goldsmith

All Powerful Moderator
Staff member

Luxury sales take biggest hit since early pandemic​

Sales fell almost 18% in recent three-month period: Redfin​

The slumping stock market is also a factor, according to Redfin real estate agent Elena Fleck, as that could impact many buyers in the luxury market.
“The good news for buyers is the market is becoming more balanced and competition is easing up,” Fleck said in the report.
To that end, the rate of price growth in the luxury market is beginning to flatten. For the three months, the median price jumped 19.8 percent year over year to $1.15 million. That’s well above the growth rate pre-pandemic, but below the 27.5 percent rise from last spring.

Additionally, the inventory crunch is easing. The supply of homes dropped 12.4 percent year over year, a significantly smaller decline than the record 24.6 percent drop from last summer. Luxury listings, meanwhile, increased 1.1 percent year over year, the first increase in the market since the three months ending in July.
Among the top 50 metros analyzed, Long Island’s Nassau County saw the biggest drop in luxury home sales, down 45.3 percent. Interestingly, neighboring New York City was the only metro with a rise in luxury sales, up 30 percent. New York also saw the second-biggest gain in listings at 31.1 percent, only trailing Warren, Michigan.

Other metros to see a major decline in luxury home sales include Oakland (35.1 percent), Dallas (33.8 percent), Austin (33 percent) and West Palm Beach (32.8 percent).
The median sales price of luxury homes rose in all 50 markets, led by a 33 percent gain in Tampa, Florida. The smallest price climb was the 5.5 percent increase in St. Louis.
Luxury listings plummeted across California. The five metros to see the largest luxury listing drops were all in the state, led by a 28.4 percent decline in Oakland. Listings also dropped 27.6 percent in Los Angeles and 24.9 percent in San Francisco.
Los Angeles also saw the second-biggest decline in the supply of luxury homes, down 36.1 percent. Miami was right behind Los Angeles with a 33.7 percent decline in supply.
 

David Goldsmith

All Powerful Moderator
Staff member
Worst week for Manhattan luxury sales in 18 months.
 

David Goldsmith

All Powerful Moderator
Staff member

More renters are bargain hunting in deep Brooklyn, Queens​

Record rents, demand pushed searches to Brownsville and Maspeth: StreetEasy​

New York City renters, fed up with record rents and empowered by work from home policies, are looking for bargains deep in Brooklyn and Queens.
The outer boroughs claimed nine out of the top 10 neighborhoods with the highest increase in search volume in July, according to a StreetEasy report on user search data. Lower Manhattan counted the five historically sough-after neighborhoods with the biggest yearly decreases in search volume: Greenwich Village, West Village, East Village, SoHo and Lower East.

Those looking to Queens to escape high rents are largely looking at Maspeth, which saw a 58 percent increase in interest year over year.
The neighborhood’s median rent is $2,400, 8 percent lower than the borough’s median. Maspeth, which sits northeast of the rising residential market in East Williamsburg, saw the greatest increase in search volume despite being more expensive than the other Queens neighborhoods that saw a jump in searches.
In Brooklyn, Brownsville saw the biggest jump in searches. The neighborhood, which has the highest concentration of public housing in the United States, had a July median rent of $2,197, or 35 percent lower than the borough median.

Renters looking for bargains in Manhattan mostly turned their sites to Upper Manhattan. The East, West and Central Harlem neighborhoods accounted for three of the most searched for neighborhoods compared to last July, joined by Morningside Heights and Hamilton Heights. Rent in East Harlem, the cheapest of the five neighborhoods, was $2,750, or 35 percent below the borough median.
While areas in Lower Manhattan saw the biggest declines in searches, Lee said it’s too early to tell if rents will start to fall, despite hitting a median in July of $4,850.

“I think a lot of landlords are feeling confident they can fill vacancies and late summer tends to be more competitive for rental markets, ” he said. “It’s possible the asking rent in these areas might have gone too far, but given how competitive the market is … I think it remains to be seen when asking rents start to decline on a month over month basis.”
 
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