What the New Development Landscape Looks Like in NYC

The Weekly Recap

Good morning and happy Friday! Mortgage rates fell again this week to their lowest level in 20 months, Rents also fell in NYC in August from a year ago but are still 21% higher than pre-pandemic. US inflation continued to cool to 2.5%, the European Central Bank cut rates again, Trump and Harris debated one another, Apple unveils the iPhone 16 with new AI features. The Fed has halved proposed capital requirement hikes for big US Banks and if you’re single looking to mingle, join a run club or hang out by a brick wall in Brooklyn.

If you missed last weeks newsletter on Key Events Shaping Real Estate Through the End of 2024, you can check that out in the link.

What the New Development Landscape Looks Like in NYC

A city is judged based on its new development and how it continues to grow. In Manhattan, it seems like every time you turn around, there is a new magnificent condo building being built or raw land getting ready for development. NYC in the short term has a limited supply of new units coming to market over the next few years (those reasons are going to be reserved for another newsletter) but below are some of my favorite new development projects that have sprung up in the city. Plus, knowing about new development is a cool way to impress your friends.

130 William St- This building held the reign as my favorite new development project in NYC for years. Located in the Financial District and the product of famed French architect David Adjaye, nothing in NYC comes close to its exterior design, thoughtful layouts and incredible views of all of Manhattan. It was the fastest selling building in the later stages of the pandemic and being in a neighborhood that historically has longer transaction times than other neighborhoods in NY makes that feat even more impressive. More info in the link below.

Claremont Hall- Designed by Robert A.M. Stern, this building took the place of 130 William only because its the new kid on the block. Utilizing the façade of the Union Theological Seminary that it is built upon, Claremont hall is an experience unlike anything else that New York City has to offer. Its amenity space includes a reimagined rectory as an indoor pool and residences with views of the Hudson River while surrounded by other neo-gothic architecture. It’s a sleeper building being located in Morningside Heights but something everyone should experience. More info in the link below.

Olympia Dumbo- This is the only gem on this list not located in Manhattan but in the highly sought after neighborhood of Dumbo in Brooklyn. With incredible views of NYC and easy access to all the coolest spots of Brooklyn including SoHo House, Cecconi’s and the Instagram wasteland known as the Washington Street view of the Manhattan Bridge, the Olympia is wonderfully designed with no detail to small or left behind. The only thing better than the level of service in the building is the 38,000 square feet of indoor and outdoor amenity space. More info in the link below.

Louis XVIII- This is a brand new project in the heart of Flatiron. A boutiqued sized condo that blends both European Elegance and American Industrialization in a neighborhood where new development is few and far between. Thoughtfully designed floorplates allow for the maximization of interior square footage creating expansive two and three bedroom apartments. Literally, scores of restaurants and bars are within walking distance of the building. More info in the link below.

The Elisa- Located right on West 14th Street in the heart of Chelsea, you cannot go wrong with the almost 10’ ceilings and huge picture windows that flood the apartment with sunlight from its southern exposure. Designed by Brazilian Architect Isay Weinfeld, the building takes a minimalist approach while providing expansive living spaces for its homeowners. The Elisa is also one of those rare, properly priced, new development projects that pops up in an area with incredibly high and continuous demand.

For more information on these buildings or anything else in NYC, don’t hesitate to reach out by responding to this email!

Market Performance

Here are how some other indexes and asset classes have performed as of this morning’s opening bell.

NYC Market Update

Here is a view of new inventory that has come onto the NYC market over the past WEEK as well as newly signed contracts in Manhattan.

Mortgage Rate Update

Mortgage rates have fallen more than half a percent over the the last six weeks and are at their lowest level since February 2023. Rates continue to soften due to incoming economic data that is more sedated. A combination of high housing prices and persistent supply shortages are giving some buyers pause although anecdotally, traffic and activity has picked up since Labor Day.

News You Can Use

• Mortgage Rates Fall to Their Lowest Levels Since February 2023 Yahoo Finance

• Global Rate Cutting Cycle Picking Up Pace Reuters

• NYC Apartment Renters Get Some Relief From Record-High Prices Bloomberg

• US Housing Market Awaiting Boost After Worst Key Season in Years Bloomberg

• August Payrolls Grew 142,000, Less Than Expected CNBC

• The Bond Market Rally Rides on How Fast the Fed Cuts Rates Bloomberg

• Consumer Prices rose 0.2% in August as Annual Inflation Rate Hits Lowest Since Early 2021 CNBC

• Consumer Inflation Slows to Lowest Rate Since February 2021 CNN

• The Fed Backpedals on Plan to Increase Big Bank Capital Wall Street Journal

• Yellen Says US Economy Remains Solid CNBC

• Here Are the Key Takeaways From Apple’s iPhone and Product Event Bloomberg

• NYC’s Hottest Pick-Up Spot is a Brick Wall in Brooklyn NY Post

• Run Clubs In NYC Have Become Another Dating Market NBC

The Deep Insight

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