I’ve written previously about the changing dynamics of Staten Island, both in the style of homes being sold and the demographics of our borough. In my forecast for 2019 I highlighted the movement of Millennials to smaller homes, but doing so earlier in life than in previous years. I have also written blog entries on buying a home in your twenties, as well as one on the advantages and disadvantages of renting vs buying, at any stage of your life. In a similar vein, in this blog entry, I wanted to touch on how the demand of millennials for new housing may affect the housing market this year, both in Staten Island, and New York City on a broader scale.
It seems that many millennials are heeding the advice of their peers and looking to get into the housing market this year. In a recent study of millennials, owning a home was listed as a top priority, just after saving for retirement, and well ahead of getting married and having children. With the perfect storm of relatively low-interest rates, and stable to slowly increasing property prices as well as rent increasing at a disproportionate rate has meant that millennials are finding new motivation, and as a result have become the largest sector of home buyers in the market, including right here on Staten Island.
My friend and colleague, Ron Molcho, NYS Real Estate Broker & Owner of American Home Groups, was recently quoted in a Staten Island Advance article as saying, “We have seen a steady uptick over the past two years. They [millennials] have surpassed the baby boomers as the largest sector of buyers. They are looking to settle down, get out of renting and start building equity.”
I would tend to agree with Ron’s observations. What’s more, being one of the more affordable boroughs in New York, we are seeing a steady flow of new Staten Islanders arrive from the other boroughs. For the same, or indeed a cheaper rate than renting in a more expensive area per month, would-be buyers are able to obtain a mortgage on a well-equipped home here in Staten Island and make the commute each day to work.
Somebody who reflects this is a friend of a close friend of mine. She’s a young millennial, working for Spotify for over three years and resides in a 2 bedroom apartment in Manhattan. Her room is a 10×10 (with closet) bedroom which she shares with her partner. She has been saving up for years and will be ready to buy a home soon. As a side note: Since she sometimes works from home and travels frequently to the Spotify headquarters in Sweden, she has expressed an interest in moving to Staten Island where she and her partner could enjoy just a bit more room.
As I mentioned in my forecast, there is a trend towards smaller properties being constructed with increased amenities. Interestingly this article paints the pictures that both millennials and downsizers will be vying for these properties in the year ahead. I also believe we will continue to see higher density developments, such as Urby growing in popularity. What effect do you think Millennials will have on the Real Estate Market in New York in 2019? I’m curious to hear your thoughts below. If you are a Millennial or a downsizer looking to make a property transaction I would be more than happy to assist in the process. I have been working with property law in the Staten Island Real Estate Market for going on 12 years now, and nothing makes me happier than to assist with the process of getting into your dream home.
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This information, based on New York law, was provided courtesy of The Law Office of Christopher J. Arrigali, P.C. It is intended to inform, not to advise. No one should try to interpret or apply any law without the assistance of legal counsel.