Misperceptions Clarified

As a resident of New York City, you might be displaying a morbid curiosity over where you are going to able to afford to live after your apartment building is knocked down to make way for a two-thousand-foot skyscraper that contains three-and-a-half condos which cost a hundred million dollars each. This is because you are misperceiving the realities of the New York City condo market, which will be engorged by sixty-five hundred new units this year.

Ms. Kennedy Mack of Corcoran Sunshine says that apartments at the very top make up less than 10 percent of new development in 2015, with about 500 “ultraluxury” units priced at $5,000 a square foot or more expected to come to market. “There is a misperception that the market is swinging drastically toward the high end,” she said. “We’re seeing a relatively steady pricing mix from year to year, which is really supported by robust buyer demand at all levels.”

Don’t worry, there will be a place for you. Consider the “entry level” apartment:

The number of units coming to market at the so-called “entry level,” defined by prices at less than $1,700 a square foot, is also expected to rise. More than 800 units in this category are expected to enter the market in 2015, up from 306 in 2014. One-bedrooms in this segment were selling for an average of $1.19 million in the third quarter of 2014, based on contracts signed.

You’ll be fine.