(NEW YORK, NY) — Over 20,000 new apartments will hit the market in 2019, most in luxury towers. However, the state of the market suggests that while the more affordable units will move quickly, it will likely take more than six years to sell all of the new development in Manhattan, as reported by the New York Times.
Brooklyn will have the most openings with 13,272 apartments hitting the market, Manhattan will take second place with 6,342 units, and Queens will take third with 6,302 units. The Bronx, which is currently undergoing a building boom, will introduce 2,471 units to the market and Staten Island just 126 units.
Homes with an asking price of $4 million are expected to sit on the market for an average of 447 days. This number is drastically higher than 2013, which saw homes in the same price range on the market for an average of 172 days.
New projects entering the market in 2019 will have to develop creative strategies in order to compete in the slow-paced luxury market.
Sites downtown and on the far west side have been grabbing the attention of developers. Included in Manhattan’s top new projects are One Manhattan Square in Two Bridges and 15 Hudson Yards on the West Side.
In Williamsburg, 420 Kent will be the largest project set to open in Brooklyn this year. Prices range $2,350 a month for studios to over $10,000 a month for the largest apartments.
While projects in Brooklyn were expected to be impacted by the partial shutdown of the L train, the 2019 forecast may need to be readjusted now that the shutdown has been called off.
The large, two-tower development 5Pointz in Long Island City is expected to open in 2019 and will bring 1,115 units to the neighborhood.
The news of Amazon’s coming to Long Island City will hopefully add fuel to the building frenzy that will continue to make its way into other neighborhoods in Queens. The Amazon effect has been proven by many developers who say Long Island city is becoming more of a destination hotspot for investors. After the news of Amazon in November, around 20% of homes listed in the area saw price increases. However, given that Amazon will only bring a few hundred employees to LIC in 2019, most buyers have been investors or those looking to relocate.