NORTH AMERICA

New York’s prime market is poised for recovery

America’s post-lockdown boom looks to have started with economic indicators from employment to household spending now on an upward curve.
Written By:
Kate Everett-Allen, Knight Frank
2 minutes to read
Categories: Property Sector Residential Sales service Sales Topic Cities Covid-19 Wealth World Regions America North America

The New York housing market looks to have got the memo too.

Sales are strengthening, prime tenants are eyeing city centre stock and both inventory levels and ‘days on the market’ indicators are shrinking.

The question is will New York’s prime price growth move into positive territory in 2021 for the first time since Q1 2018? In our prime forecast we envisaged 0% growth in 2021 but this could yet prove conservative.

With around 36% of the US population having received one dose of the vaccination, borders rumoured to be opening in the second half of 2021 and a $1.9 trillion stimulus bill now approved, the outlook is increasingly positive.

Released today, Knight Frank’s New York Focus Report presents the latest metrics on the city’s luxury housing market and delves deeper into the findings published in The Wealth Report 2021.

Key findings:

  • New York remains the world's number one wealth hub with more UHNWIs than any other city worldwide (7,743)
  • New York and London tie for first place in Knight Frank’s City Wealth Index which assesses where UHNWIs want to live, work and do business
  • The sale of Manhattan condo apartments increased 55% in February 2021 year-on-year
  • Discounted rents are attracting more tenants back to Manhattan and Brooklyn

Drilling down into The Wealth Reports Attitudes Survey at a country level, the report compares and contrasts the attitudes of US ultra high net worth individuals (UHNWIs) to those globally, key findings include:

  • 33% of US UHNWIs plan to buy a home in 2021 above the global figure of 26%
  • UHNWIs in the US allocate more of their wealth to property (24% for principal and second homes) than UHNWIs globally (18%)
  • The appeal of urban and resort living is stronger for US UHNWIs than it is globally
  • US UHNWIs are more positive about investment opportunities post the pandemic than UHNWIs globally
  • US UHNWIs are more motivated by tax as a reason to move than UHNWIs globally

I hope you enjoy reading this new report. Should you have any queries, please do get in touch with either myself or a member of the US Team.

Download the report