Gentrification, infrastructure upgrades, rezoning, climate investments and shifting work patterns fueled up to 288% price growth in some NYC neighborhoods.
Key Takeaways:
- 24 NYC neighborhoods saw median sale prices double or more throughout the last 10 years, growing by as much as 288% in Two Bridges.
- In eight neighborhoods, sharp price gains were primarily fueled by gentrification, with Carroll Gardens and Cobble Hill approaching $2 million.
- In coastal neighborhoods like Red Hook and Clason Point, recovery from Hurricane Sandy and resiliency investments have brought in climate gentrification.
- Neighborhoods like Parkchester, Clifton, and Richmond Town show signs of pre-gentrification with rising incomes, new developments or increased LLC ownership.
- The rise of hybrid and remote work has increased interest in previously overlooked areas, including Staten Island waterfronts and transit-poor zones.
- Property tax bills more than doubled in many of these neighborhoods, rising as much as 751% in Gowanus, adding another layer of financial pressure for homeowners.
- Most of the featured neighborhoods that were affordable a decade ago have become inaccessible to lower- and even middle-income buyers, while a few resisted or even failed to gentrify.
New Yorkers who bought a home last year paid a median $730,000, nearly half as much as 10 years ago. Looking at city’s staggering home price growth, we zoomed in on NYC at a more granular level, to better understand which parts of the city heated up most.
Specifically, we focused on neighborhoods where the median sale price doubled or more between 2014 and 2024, analyzing pricing, income and tax indicators. Then, diving into the diverging trends of this dynamic and diverse real estate market, we looked for the potential or visible drivers of accelerated price growth.
So, while NYC home prices appreciated 49%, the median sale prices of 24 NYC neighborhoods recorded gains as high as 288%, as was the case in Two Bridges. Notably, median sale prices in these neighborhoods ranged between $96,000 and $900,000 a decade ago, but today they sit between $220,00 and nearly $2 million…