New York new development has a looming inventory crisis

"It's not that demand has ground to a halt. A number of new buildings launched in the last year have sold quickly and with few discounts. But the new buildings for buyers to tour in the back half of the year have all but disappeared in the proverbial fog of high financing costs and scarce assemblage opportunities, a trend that will only continue into next year."

"In the second quarter of this year, the 3,600 unsold units in Manhattan marked a 10-year low, according to data from Corcoran Sunshine Marketing Group, and that number will only shrink heading into next year. This year, only five more buildings are projected to deliver 245 units in Manhattan, according to data from Brown Harris Stevens Development Marketing. It's surprising to me that it's taken so long for so many people to actually catch on,"

New development demand remains active, with several new buildings selling quickly and with few discounts. New project listings for buyers in the latter half of the year have virtually vanished amid high financing costs and scarce assemblage opportunities, a trend expected to continue into next year. Manhattan held about 3,600 unsold new-development units in the second quarter, a ten-year low, and only five additional buildings are projected to deliver 245 units this year. The market is between two cycles: a post-pandemic boom that drove rapid acquisitions and launches, and the period of rising interest rates heading into 2023.

Read at therealdeal.com