In 2008, we saw the peak of housing permits issued in New York City and with it, the peak of new construction. Over the past few years, it seems developers, along with everyone else, have been unsure where the market was heading and consequently highly reluctant to take on any new projects.
This is absolutely evident from the number of new development listings currently on the market, down 20 percent last quarter from the previous year. But, with tight inventory across Manhattan and a plethora of buyers clamoring for high-end new construction, developers across the city are finally starting to get the message. According to the most recent us census data there where 4,059 new residential permits issued in NYC through the first five months of 2012. As a total this represents a 39.4 percent increase over the same period in 2011. While it is still a 58 percent decline from the peak in 2008 when there were 9,723 units permits issued, we are now going to see many more new development projects on the horizon. January to May 2012, Manhattan alone issued 1,422 permits, which was almost 10 times the 146 permits issued during the same period in 2011.
There has been a lot of talk about the new developments hitting the market; we’ve seen some amazing things including some record-breaking sales. As we all know the world has changed and so have the concepts for some of these developments. I am hearing about a lot of high-end projects hitting the market. If you think about it there have not been a ton of super high-end homes that have been developed. There have been really really nice finishes but not necessarily to the level you would use if you were picking the materials yourself. However that is rapidly changing. You can see this trend toward uber-luxury in the new Walker Tower (in what was the Verizon building) and Extell’s One57. Crestron systems (a complete home remote control system), heated floors, high-end central heating/air conditioning systems, French herringbone oak flooring, and marble bathrooms with Waterworks fixtures, are just the some of the bells and whistles in these highly sought after buildings. I can’t imagine the people who are buying here will rip out anything and start new, as I have seen happen in many cases over the last 10 years. And there’s only more coming. I’m watching new developments closely and here are some of my favorites that will be hitting the market soon:
11 East 68th St
150 Charles St
301 East 50th St
290 West St
445 Lafayette St