Perched on the banks of the Hudson River, Hudson Yards is Manhattan’s most exclusive new neighborhood. A relative youngster on the Big Apple scene, Hudson Yards has quickly become New York City’s most prominent spot, featuring cutting-edge architecture and a sleek, modern sensibility primed to take Gotham’s sophisticated denizens into a new era of city living.
Known for a bevy of world-class bistros, chef-driven menus, pristine parks, and an infusion of vibrant artistic energy, Hudson Yards has made a major splash on the New York City real estate scene, and the buzz around this prestigious place has earned it the title of New York City’s most expensive neighborhood. The future looks bright for Hudson Yards, but with the roller coaster atmosphere of the real estate market of late, what is the real forecast for this exclusive market? Let’s investigate the trends, current atmosphere, and projections for the future of Hudson Yards.
Current Real Estate Market in Hudson Yards
The modern new community of Hudson Yards has taken city living by storm. Considered the biggest megadevelopment in the nation’s history, Hudson Yards sprawls over 28 acres on the west side of Manhattan and features a mixed-use campus of high-end properties, boutiques, restaurants, and parks. The exceptional properties in Hudson Yard have seen dramatic growth over the few years it has been in existence. This year, Hudson Yards home prices have dominated the market, towering over the city’s most prestigious neighborhoods and landing the new development squarely in number one territory.
Rising Interest Rates
The shifting sands of real estate in the last few years have brought unprecedented changes to the market and a landscape for which few were prepared. While the mid-pandemic housing crisis brought interest rates to an all-time low and even paused them completely for a time, the incredible numbers caused an imbalance in the market. Sellers reigned supreme, and list prices skyrocketed. Inventory dropped, and sellers had themselves a monopoly on the market.
The Federal Reserve instituted a series of interest rate hikes to counteract the ever-increasing prices and lack of inventory. For over a year now, the Fed has continued to increase rates. The market has balanced out in most markets, and buyers now command the power in several areas across the country. Those paying in full for new properties remain unaffected by the rate increases, and even those who opt for a traditional mortgage will find the increases are not quite as dramatic as first glance would suggest.
Today’s rates typically range from 5%-5.25%, admittedly higher than the rock bottom rates of 2021, but still a stark difference from decades past. Back in the 1970s, rates were drastically higher, and by the 1980s, rates peaked at a whopping 16.63%. By contrast, today’s slight increases seem relatively mild.
The 2023 Market Forecast
So what does the future hold for Hudson Yards and New York City real estate? The short answer is if you are considering buying, now is the time. Housing prices are on the rise and are likely to continue to rise over the course of the year. With rents at an all-time high and rental inventory at a serious low, investors have every reason to snap up apartment buildings in good condition.
Construction costs have changed the real estate game across the country, especially for investors and rehabbers. House flipping has long been a popular side hustle, with HGTV boasting an endless amount of television shows and content extolling the virtues and successes of house flippers. But in the post-Covid economy, renovation costs reached new heights, and limited access to building supplies significantly affected new housing developments. For investors hoping to rehab an old building, this creates some concern – but for new construction developments, these new details were welcome news.
Sleek new communities like Hudson Yards real estate are as effortless as they are luxurious. Residents have everything at their fingertips. Office and retail space are abundant, and even schools are available within the community. Hudson Yards luxury condos offer unprecedented amenities, and the entire development is considered a model for future smart cities.
With so many amenities located right inside the development, Hudson Yards is likely to continue to command widespread attention, as well as top dollar. From pristine public parks and interactive sculptures to the breathtaking views at the Edge, the highest observation deck in the west, this astonishing neighborhood has plenty to attract buyers.
Why Working With an NYC Real Estate Agent is Key
Research shows that working with a real estate agent is key to finding the home of your dreams and securing the most lucrative deal. The benefits are endless, from enjoying access to off-market properties to learning real estate investment strategies from well-versed agents. Your agent will make the entire process easier and will likely offer tailored guides and educational materials for buying, staging, and selling protocol.
Agents are bound by fiduciary duty, which protects clients and ensures agents disclose any and all pertinent information. This kind of ethical approach is already a given for expert agents, and it can offer yet another level of confidence for buyers, especially those entering the market for the first time. Best of all, your agent is your trusted confidante, mentor, advisor, and dream maker whose insight and expertise will make your real estate journey seamless and successful.
Your Hudson Yards Real Estate Agent
Mukul Lalchandani, known affectionately as Mickey to his friends and clients, has a refined eye and a storied history in real estate. Born into a real estate family, Mickey learned from a long line of real estate investors and has brought his expertise to countless clients, top media outlets, and even the hit show House Hunters.
Clients have praised the esteemed Hudson Yards realtor for his uncanny understanding of international buyers' needs and his innate knowledge of the bustling New York City market. If you are ready to begin exploring Manhattan’s dynamic market, contact Micky and his Undivided Real Estate team today for a bespoke experience.
