Photo: Robert Clark
Many prospective New York City homebuyers are opting out of buying due to lack of housing in their price range, fierce competition, and affordability issues.
However, for those with the means, these are the top five neighborhoods that will give homebuyers more bang for their buck, according to data from crowdfunding real estate investment site Sharestates that was supplied to Curbed.
To determine what neighborhoods were the best for homebuyers right now, Sharestates looked at median prices, average return on investment (ROI), year-over-year change in demand and after repair value (ARV).
The ARV is the value of a home after it has been fixed up, and not in its current state. It’s a tool widely used by real estate investors as it determines the margin between as is value and desired value after repairs have been made.
According to Sharestates, here are the top five NYC neighborhoods for homebuying:
1. Richmond Hill, Queens
Located deep in the heart of Queens, Richmond Hill is a diverse and vibrant neighborhood. It borders on the suburban Woodhaven and Ozone Park areas, and is a short ride from JFK airport. The median home value in Richmond Hill is $542,500, and at 12 percent buyers had the highest return on their investment compared to the other neighborhoods on the list. From 2016 to 2017 demand in Richmond Hill increased 200 percent. The ARV is 42 percent.
2. Bed-Stuy, Brooklyn
Bed-Stuy borders on the ultra-trendy and ultra-pricey Williamsburg neighborhood, and is becoming increasingly popular in its own right. Rent growth in this neighborhood outpaces all others on the list, says Sharestates. Homes in Bed-Stuy currently have a median price of $745,000, still well below the boroughwide median asking price of $929,000. Homebuyers can expect an 11 percent return on their investment. Meantime, the ARV was 52 percent.
3. Ocean Hill, Brooklyn
A hilly subsection of Bed-Stuy, Ocean Hill is an up-and coming neighborhood. Many of its empty warehouses and abandoned properties are being converted into new housing. Homebuyers saw a 10 percent return on their investment, and demand surged 100 percent from 2016 to 2017. The ARV was 63 percent, while the median home value was $746,000. It won’t be long before this Brooklyn neighborhood catches fire.
4. Longwood, Bronx
The south-western Bronx neighborhood of Longwood is primarily residential, and saw a 13 percent growth in its population from 2000 to 2010, according to Census data. Interest in the area skyrocketed 300 percent from 2016 to 2017. Homes sell for a median price of $727,500, with a 10 percent return on investment. The ARV is 56 percent.
5. Flatbush, Brooklyn
Flatbush has both the lowest median price of all the neighborhoods on the list and highest demand, $520,000 and 400 percent, respectively. Bordering on Prospect Park, the neighborhood is an interesting visual mix of Victorian, brownstones, and brick homes. It is also equally culturally diverse as well. Homebuyers saw a 10 percent return on their investment, and the ARV was 28 percent.