Harlem has proven to be one of New York's hottest real estate markets over the past few years. Let's explore if this hot streak will carry into 2020 and beyond
Harlem is one of New York's most dynamic and historic communities, a welcoming place with a vibrant lifestyle.
It is surprising, then, that this close-knit burg is often glossed over in discussions of New York real estate for its more celebrated siblings to the south.
However, recent property development and a growing youth movement of new residents is changing the conversation. Ready to enter the spotlight as a highly desirable place to live, work, and play, Harlem is on the cusp of a big decade.
First, let’s explore how that decade will begin and look at three real estate predictions for Harlem in 2020.
Business in New York Drives Residents North
Business in New York continues to boom even with concerns that an economic slowdown
is on the horizon. Facebook has plans for 1.5 million square feet of space in Hudson Yards. Disney is eyeing a new 1.3 million-square-foot campus to house its burgeoning Disney+ streaming service. Other tech and entertainment giants like Amazon, Apple, and Google are also seeking expansion in the Big Apple. All of this leads to rising rent near the epicenters of such new activity.
But not every New Yorker—resident or transplant—can afford to live near the same tech hubs where they work. At least not in 2020 or the foreseeable future, which is why Harlem's future success is indirectly tied to the power moves of today's leading companies. Harlem real estate remains a relative bargain when compared to the rest of New York. Expect to see residents flock to the area as they seek a more affordable lifestyle away from glossy and expensive tech centers.
Long Developing "It" Neighborhoods Finally Shine Bright
Every year, the real estate market celebrates a few trendy new neighborhoods. Now, these hot spots are not exactly new, per se. However, their stock has risen over several years, thanks to an influx of new residents, development, and continued interest from investors.
The key to these popular new prospects, aside from—of course—location, are improved amenities and desirability. Highly-rated schools. New commercial and entertainment options. Increased safety and neighborhood aesthetics, such as parks and easy access to mass transit—all of which describe Harlem.
The shining stars of 2020 include: East Harlem, which has received considerable development attention over the past five years; Manhattanville, home to Columbia University's ambitious expansion, which is changing the face of West Harlem; and areas both north and south of Strivers' Row, which is experiencing small, measured growth.
Affordable Luxury is the New Buzzword
The luxury market in New York has cooled off in recent years. While robust sales from people looking for deals still occur in pockets across lower and midtown Manhattan, prices have yet to come down far enough to entice significant transactions. Harlem and its impending wave of "affordable luxury" projects are providing the city with a fresh real estate perspective.
In 2008 a zoning change allowed taller structures around 125th Street, which has led to a mini construction boom across Harlem. No fewer than 20 different upscale and mid-range residential projects are in some stage of development. From the Victoria Theatre redevelopment to 2171 Frederick Douglass Boulevard to 2600 Adam Clayton Powell Jr. Boulevard, Harlem's affordable luxury housing boom will expand in 2020.
Are you interested in buying or selling a home in Harlem? Or are you just seeking more information on the Harlem real estate market? Contact the Uptown Flats team at Compass
today. It would be our pleasure to help you navigate the process.