Data indicates home buyers stayed close to home. Towns that reasonable commute from NYC saw sales soar.
New Yorkers Relocated Close to New York City
For all the hype we read about New Yorkers fleeing New York City in droves during the pandemic, many relocating New Yorkers didn’t stray far. Their “close-in” moves gave them both continued accessibility to the Big Apple and more affordability.
George Ratiu, chief economist with realtor.com, believes that the shift from New York City to New York metro area suburbs has been driven by demographics. Ratiu said, “Many millennials who have moved to New York City in the past decade, decade and a half, are turning 30. For a lot of these people, their stage in life is changing and so are their priorities.”
NYC Metro Area Suburbs with Largest Annual Gains in Sales
To get the best of both worlds, many relocating New Yorkers moved “close-in” to New York City by moving to suburbs within 30-40 miles of the city.
Here is a list of metro area suburbs that have experienced the largest annual gains in sales:
- Morris County NJ +157%
- Pine County PA +115%
- Putnam County NY +109%
- Nassau County NY +106%
- Essex County NJ +88%
- Westchester County NY +82%
- Sussex County NJ +79%
- Monmouth County NJ +74%
- Union County NJ +74%
- Bergen County NJ +69%
Along with affordability, Ratiu said, “The pandemic really caused a lot of people to reassess the premiums they were willing to pay to live in New York. I do think for many New Yorkers, quality of life is something they were and are seeking.”
Most buyers, according to Mary Dougherty with the Doughtery Group at Compass, want larger, updated homes that can accommodate several home offices, large yards for privacy and multiple levels “…so there can be privacy when needed.”
Demographics to Spur Close-In Suburban Sales To Continue
Ratiu believes that this “rush” to close-in suburbs will continue. He said, “I see this potentially continuing to have legs for at least the next five years …” due to the reality that some 30M millennials are coming into their 30’s…”
Ratiu continued. “Today’s suburbs do not look the same as they did 15 years ago. Today’s suburbs…have mixed-use residential, with commercial, with parks, with bike paths, with public transport.
New York City NOT A Ghost Town
During Q2 2021, home sales in Manhattan jumped nearly +152%, the highest quarterly total in six years, according to a report from Douglas Elliman.
Ratiu said the city “…won’t bleed residents. People still want to experience the lifestyle.”
Thanks to realtor.com, Douglas Elliman and The New York Times.
