There’s been a shift in New York real estate, with Manhattan attracting younger buyers and older denizens of the city migrating to new locales—even if only across the East River.
It’s true that many New Yorkers left the city when the Covid-19 pandemic began, and have continued to do so ever since. Fueled by the ability to work from home, people packed up for warmer climes and or places like Florida and Texas, where there’s no state income tax.
But, loath to leave the city entirely, some Manhattanites haven’t gone further south than Brooklyn, according to Ari Harkov of Brown Harris Stevens/Luxury Portfolio International.
“One of the biggest exodus from the island of Manhattan was to Brooklyn,” he said. “People took refuge there, accelerating the pre-Covid trend of a shift to Brooklyn which had already been happening for a few years.”
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Indeed, Brooklyn’s real estate market saw little to no downshift in sales volume, and price growth has been steady, Mr. Kharkiv added. In Brooklyn, the median price was $888,000, a 1.5% year-over-year increase, in August, the most recent data available, according to Realtor.com. Meanwhile, the median listing home price in Manhattan was $1.4 million in August, Realtor.com data showed.
The shift in New York has also seen a wave of buyers, particularly younger professionals, moving downtown, according to Gea Elika, the principal broker at ELIKA Real Estate, which exclusively represents buyers.
“We’ve had a massive population shift,” he explained. “It’s huge…we’re living history because you go on the streets and the people are younger. And there are younger buyers and more affluent younger buyers. It’s like nothing I’ve ever seen before.”
There’s also been a change in buyers’ professions, said Vickey Barron, an agent at Compass.
“It used to be Wall Street and now it’s tech,” she said. “New York is becoming a little Silicon Valley.”
Downtown Manhattan and Brooklyn
Although many New Yorkers left the city for lower-cost-of-living states over the pandemic, that trend is starting to slow. From January to July, there was a net outward migration of about 115,000 households, as opposed to 401,000 the previous year, according to a report released in early September by Markerr, a real estate data company.
In addition, some buyers who left are returning to the Big Apple, having found the schools not up to par or that the “vibe” of their new home isn’t satisfactory long term, Mr. Elika said.
The choice now is often between downtown Manhattan or Brooklyn, according to Mr. Elika.
“A lot of my tech clients have chosen Chelsea and Williamsburg,” he said. “I think that’s mainly because of the proximity to them [office] buildings.”
Alicia Dong, a Douglas Elliman agent, agreed, noting Chelsea has the strongest draw for “the younger generation of high-income buyers.”
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“Chelsea is more popular than ever. The big tech companies such as Meta [formerly Facebook], Amazon and Google have all expanded their office presence in Chelsea, bringing name recognition and demand to the area,” she said. “Apartments along the river have incredible sunset views that buyers love. All these things make Chelsea the most popular place to live for the younger generation of high-income buyers.”
As it has been for many years now, Williamsburg is also particularly popular because of its vibrant lifestyle, walkability and restaurants, agents said. In addition, it’s close to the East River—as well as a number of connected waterfront parks—and only one subway stop from Manhattan.
“There is no other area in New York that can substitute for Williamsburg’s famously casual ‘hipster’ atmosphere,” Ms. Dong said. “It’s a great place to live with a unique character. It does not feel as commercial as many areas in Manhattan.”
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Another neighborhood that’s been gaining traction is Long Island City, Queens, she added.
“Clients love its proximity to Midtown, just 15 minutes by multiple subway lines,” she said. “Because of the convenient transportation, many new rental apartments were built in the past few years, attracting a large number of young people…The area is so convenient to go to work, and it is not as crowded as Manhattan. The carrying cost is low, and the buildings tend to be very new with great amenities.”
One thing the most popular New York neighborhoods have in common now: new developments.
“New York has gotten more homogenous,” Mr. Kharkiv explained. “There are so many desirable neighborhoods with projects by tony builders. The wealth has spread out.”
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Developments Over Neighborhoods
More than two-and-a-half years into the Covid-19 pandemic, many buyers are seeking new homes instead of historic buildings.
“The charm of exposed brick walls faded during Covid and fresh and new became more desirable,” Mr. Elika said.
Plus, many buyers want amenities, according to Ms. Dong.
“Buildings with great amenities are preferred over traditionally older white glove service co-op buildings,” she said. “If the available buildings don’t have a gym, or have no washer and dryer in the unit, buyers will choose to become renters.”
Larger homes and access to green space became paramount over the pandemic, and that hasn’t changed.
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“People now spend more time at home, with many professionals working at home, so buyers really care about having extra space,” Ms. Dong added. “Outdoor space is also important, like being close to the water or parks.”
Many of the buyers Ms. Barron has worked with recently are also more interested in the actual residence than where it is located.
“Right now, what I’m seeing is that [buyers] are less neighborhood specific and more apartment or townhouse specific,” she said. “They come with their checklist…whether it’s a large terrace, or a real kitchen with two dishwashers because we’re actually now cooking at home. Lifestyles during the pandemic changed and they’re willing to go to different neighborhoods to get that checklist accomplished.”
She’s seen a shift in buyers’ tastes, as well.
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Many New Yorkers became budding chefs and bakers while restaurants in the city were closed (Ms. Barron joked that her own husband told her, “I never knew you could cook.”) That means buyers are not only seeking a kitchen that’s not just a showpiece, but also has functionality.
“We used to joke that people just put their sweaters in the kitchen,” Ms. Barron said. “Now they are actually wanting steam ovens or pantries…and another trend is that they don’t want such an open kitchen.”
As every culinary enthusiast knows, the kitchen isn’t always so neat after whipping up a souffle or a homemade pasta dish. Being able to hide the mess is becoming more important for those whose entertaining includes actually making the meal instead of ordering in.
In general, the open layout—which was so ubiquitous prior to the pandemic—is not as popular, she added, as residents need doors to close so they can take calls or video meetings in peace.
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