As we look to what the NYC new development market will bring in 2022, Robin Schneiderman, managing director of Brown Harris Stevens Development Marketing and Laura Tomana, vice president of research and market analytics, provided their expert insight on what prospective buyers should expect in the new year.
1. What is your biggest takeaway from the new development market in 2021?
Schneiderman: New development sales far outpaced expectations in 2021. We can thank construction and sales cycles for this. Many of these sales occurred in buildings offering immediate occupancy and thus, immediate gratification. No longer needing to rely on floorplans and off-site sales galleries, buyers were able to walk buildings, see finished units, and feel more comfortable making decisions as a result.
Tomana: The market was a lot stronger than people were expecting. We have seen a shift to larger units as people pine for more square footage and space to work from home. In many new development plans, we are scoping fewer one-bedrooms than in previous cycles.
2. Which neighborhoods/areas should buyers be paying attention to if they're looking at new developments?
Schneiderman: In early 2022, we will see more new developments re-launching after going off market during the pandemic than brand-new projects coming online. This is less neighborhood-driven than it is project-driven.
Tomana: Queens has the most new buildings of any borough, and that borough followed by Brooklyn. Areas that have recent proposed or approved re-zonings are ones to watch—and I’d primarily call out Gowanus and Inwood. Our Research & Advisory Division was engaged to analyze a new large-scale Gowanus project. We should expect to hear a lot about Gowanus this year.
3. What interesting amenities/features will developers be offering?
Schneiderman: Developers will continue to build on their wellness features. This isn’t just fitness, but access to outdoor/green space, air filtration, and mindfulness are just a few ways we will see buildings addressing buyer desires.
We are also seeing concierge services becoming more of a requirement in people’s everyday lives—and not just at the super high end. People need more help getting through daily routine tasks as well as special occasions, and concierges are meeting that need.
Tomana: The most obvious will be work-from-home amenities. 200 Amsterdam has private, noise-cancelling Zoom Rooms. We think this will become more prevalent in future buildings too. Pet and childcare in retail spaces has long been desirable and continues to be relevant. We also see people coveting dog runs so they don’t have to leave their building.
4. Where will buyers find the most value in 2022?
Schneiderman: We are seeing much less negotiation in the market right now. Inventory has gotten tighter and developers don’t need to offer the same concessions they did as when COVID was first hitting in early-mid 2020.
Tomana: Harlem typically delivers the most bang-for-your-buck in Manhattan.
5. What is your #1 tip for a buyer looking to purchase in 2022?
Schneiderman: If someone is comparing resales to new development, they really need to have an understanding of the renovation timeline and costs. Resales that need renovating will take more time and money than they would have a few years ago, given labor shortages and supply chain issues. Many new developments right now are ready for occupancy and are turnkey.
Tomana: Think long-term. Think beyond what you need right now and think about what you will need in 5-7 years, and stretch for it if you can.
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