'Surprise' Year For NYC's Real Estate Market In 2021: Study

NEW YORK CITY — Rock-bottom expectations for New York City's real estate market in 2021 gave way to sky-high results, according to a new study.

Prices are highly likely to rise in 2022 as a carryover from an unexpectedly strong year for sales and rentals, the study — "NYC Market Report" — by Coldwell Banker Warburg found.

"The 2021 real estate market took New York by surprise," the study states. "Once again, those pundits who predicted the demise of the city turned out to be wrong, as 2021 developed into one of the most
robust sales and rental years within memory."

Much of this red-hot market occurred in sectors beyond the reach of most New Yorkers, the study found.

Luxury and ultra-luxury offerings proved the strongest point in the market, with many deals fetching north of $30 million in Midtown, Tribeca and the West Village, according to the study.

Likewise, townhouses in Brooklyn and Manhattan saw a 75 percent jump in sales from 2020, the study found.

Supply, however, is depleted from newly constructed apartments, among other offerings, being gobbled up, according to the study.

"Less new inventory is appearing on the marketplace as increasing numbers of projects sell out; at the same time, resale inventory stands at historic lows," the study states. "While it is highly likely that prices will rise during the coming year, COVID variants or no COVID variants, the larger question remains: will supply rise to meet
demand."