Land costs in Manhattan are the biggest cause
In the midst of a residential development boom, the focus has clearly shifted from Manhattan to the outer boroughs. Surprisingly, only 30 percent of new apartments (20,900) coming on the market this year will be in Manhattan, according to the WSJ.
Dig Deeper: The number of new apartments (sales and rentals) on the market in Brooklyn last year exceeded those in Manhattan for the first time since 2009. Interestingly, the borough of Queens is set to surpass Brooklyn by 2020.
By the numbers: New York City’s population hit a record 8.6 million last year, which is up 5.5 percent since 2010… Bronx, Brooklyn, and Queens grew at faster rates than Manhattan.
Heard on the Street: Gary Barnett: “The numbers just don’t pencil out in Manhattan, especially for rentals. Nobody can afford to build there.”