Bronx Real Estate Market Remains Strong Despite Economic Headwinds
The Bronx saw record dollar volume and the second most single-family home transactions ever recorded with $1.54 billion spent over 189 transactions. These were slight increases over the second half of 2021 and significant increases year over year. The overall increase in activity is an indication of the upside and opportunities found in the Bronx.
The real estate market in the lower Hudson River Valley and greater New York City suburban area continued to be battered by chronic low inventory, rising interest rates and persistent inflation during the third quarter of 2022. However, even given these adverse conditions, resiliency and consistent buyer demand are still evident, especially when compared to the pre-pandemic market of 2019. While total transactions are down from the previous year, median sales prices continue to increase throughout the market, driven in large part by low inventory. We also are likely experiencing a return to a more seasonal market, which disappeared during the latter half of 2020 and the entirety of 2021.
The Bronx market continued to show signs of strength, in the third quarter of 2022, with single-family home sales ahead 9.2% over the third quarter of 2021. The median sales price of $630,000 was 6.8% ahead of last year.
The median sales price for condos in the third quarter of this year was $309,000, which was slightly ahead by 3% over the third quarter of 2021. The median sales price for co-ops was $255,000, a 4.1% increase over the third quarter of 2021. The ultifamily sales price stood at $822,500 with a 6/1% increase over the third quarter in 2021.
The average rent in the Bronx has increased in October. Over the past month, the average rental price in the neighborhoods increased by 1.76% from $2,220.95 to $2,260.00. Studio rental pricing increased by 0.02%, from $1,943.99 to $1,944.34. The average rental price for a one-bedroom unit increased by 2.68% from $2,089.34 to $2,145.26. The average rental price for a two-bedroom unit increased by 2.32%, from $2,629.51 to $2,690.39.
The most expensive studio, one, and two-bedroom units were all seen in Mott Haven. Conversely, the most affordable studio and two-bedroom units appeared in Morris Heights/University Heights and one-bedroom units in Concourse/Highbridge.
Looking ahead, while the overall outlook for New York City real estate is more uncertain than it has been in recent years, The Bronx remains positive as it continues to be one of the most affordable areas of the city. With colossal infrastructure projects underway in the region, and the upcoming rezoning along Jerome Ave., The Bronx should continue to draw investment, all but guaranteeing near and long-term price growth in the borough.
