NYC Residential Sales Take A Big Nose Dive In 2020, Study Finds

NEW YORK CITY—Demand in New York City real estate has plummeted as the coronavirus pandemic has led to many people fleeing the city for more budget-friendly locations that offer more space and better "bang for their buck."

In fact, more residents escaped from New York over the last year than from any other state, according to estimates released by the U.S. Census Bureau on Tuesday. New York City accounted for the bulk of the state's population loss, The Buffalo Chronicle reported.

As residents flee the "Big Apple" for greener pasture, this has forced real estate sales in many parts of the city to take a nose dive, a new study revealed. New York City rents have also fallen more this year than they did during the Great Recession, according to StreetEasy's November 2020 Market Reports.

"We expected the rental market to match the weakness seen during the Great Recession, but the fact that the market has surpassed that level in less than one year shows how serious the crisis caused by the pandemic has been," said StreetEasy Economist Nancy Wu in a news release.

In a separate report by Property Shark's annual ranking of NYC's Most Expensive Neighborhoods, residential sales across NYC dropped 32 percent year-over-year in 2020.

Median sale prices across the city revealed a rather even-keeled mixed bag, the Property Shark's study found. Overall, prices increased by only one percent year-over-year, resting at $660,000. However, a more granular analysis shows that, while 26 of NYC’s priciest neighborhoods posted price increases between 0.5 percent and 44 percent, the other 25 saw decreases ranging from 0.25 percent to 40 percent.

On a somewhat positive note, nine of NYC’s 54 priciest neighborhoods did actually experience an increase in the number of sales during this past year — seven in Brooklyn and two each in Manhattan and Queens, the study reported.

Here's a look at the top 10, along with their median price-points:

1. Hudson Yards: $4,504,000
2. TriBeCa: $3,157,000
3. Little Italy: $2,750,000
4. SoHo: $2,463,000
5. Hudson Square: $2,100,000
6. Theatre District-Times Square: $1,807,000
7. Central Midtown: $1,790,000
8. DUMBO: $1,625,000
9. Flatiron District: $1,593,000
10. Cobble Hill $1,491,000

Overall, sales activity decreased in 43 out of 54 — or 80 percent — of NYC’s priciest neighborhoods, the Property Shark's study found. While Hudson Yards had the largest drop in sales with an 85 percent decrease, Manhattan’s Lower East Side was also hit hard with a 67 percent drop in sales. On its heels were Chinatown and Greenpoint, where sales decreased by 62 percent and 55 percent, respectively.

Read the full StreetEasy report here.

Read Property Shark's full report here.