New York, but on the investment front, it’s still got runway.
And, the latest market report for the borough reinforces why real estate players have had a strong appetite for investment and development there for the past several years.
In 2017’s fourth quarter, average residential prices in the Bronx breached their pre-recession peak for the first time, hitting a record of $515,000, according to a report the Real Estate Board of New York released last month. The previous peak was $507,000 in 2006.
The Bronx also saw the largest increase in residential sales volume among the five boroughs — jumping 17 percent, to $455 million, year-over-year.
Although dollar volumes are far higher in every other borough — Manhattan, Brooklyn and Queens, for example, saw $4.8 billion in sales, $2.4 billion and $2.3 billion, respectively, for the quarter — none of them experienced the same kind of growth. Manhattan saw sales volume drop 12 percent, while Brooklyn saw a 4 percent jump and Queens increased by about 12 percent, according to the REBNY numbers.
Meanwhile, rents have also increased at a faster clip in the Bronx than they have elsewhere in the city, and investment sales have picked up.
In addition, as The Real Deal and others have incessantly reported, rental developments — both subsidized and market rate — are transforming the South Bronx waterfront.
“The nucleus is Manhattan,” said Adam Mermelstein, whose firm Treetop Development is an active rental developer in the Bronx. “And from there, the neighborhoods spread and spread and spread.”
Mermelstein invoked a common refrain, noting that when uptown neighborhoods such as Central Harlem and West Harlem become less affordable, it “further spawns development” and interest from buyers and renters in the Bronx.
Mott Haven, in particular, has seen tremendous developer interest in the past several years.
Mott Haven and the adjacent Port Morris saw the largest rent increases in the city during 2017, increasing 9 and 11 percent, respectively, according to data from the rental website Zumper. By comparison, borough-wide rents jumped 5.7 percent during that time, while rents in Manhattan and Brooklyn stagnated.
Median rents in the neighborhoods — $1,790 in Port Morris and $1,700 in Mott Haven — are, however, much lower than they are other parts of the city.
Sarah Saltzberg, the co-founder of Bohemia Realty Group, an Upper Manhattan-based brokerage that’s 上海千花网