Building Costs Per Square Foot in the City of New York (NY), USA

Nearing completion – Newly Built House in New York 333 Hunter Avenue Staten Island NY10306 – 3 Bed and 2 Baths with 1 Garage on Gross Floor Area 1,304 sqft – Built in 2022 – Price $699,000 (3)

Residential Construction Market Analysis in the City of New York, USA

Building costs are 31% above the national average in the City of New York, equivalent to the borough of Manhattan (NYC) and higher than Long Island (NYC) by a deviation of 1%. New York is the 3^rd most expensive city to build a house in the USA after Bay City (TX) and Boston (MA). The city that never sleeps has been somewhat subdued during the COVID-19 pandemic. Not only were tourists lacking and some attractions were closed, but the real estate market also suffered during 2020.

One particularity of NY is that the recovery in the real estate market is taking longer that it took to the other states of the country. The main cause it’s because the prices are always extremely high in NY, both for buying or renting, and with the rise of home office some people found it easier to live elsewhere. However, this 2022 brings a boom in sales and rentals in the city, taking it to the top where it belongs.

In this article we will focus on the residential construction market in New York, so you cannot miss all the information that we bring you. From an outlook on construction to data and values of the real estate market and what you can expect in the future.

New York Construction Outlook

This state, known as the capital of the world, is divided into 5 boroughs: Staten Island, Manhattan, Queens, Brooklyn, and the Bronx. Manhattan is the big apple and the most touristic place, in turn, the most expensive in the state. Here are the big skyscrapers, and the city is full of tall buildings, so the apartments are the big stars.

Staten Island is the quintessential residential location for families. It has large houses with ample land and grass. Its gardens allow children to play and it is a good place to raise your children, especially since it is a bit away from the hustle and bustle of the city.

Brooklyn and Queens are quite similar, with some buildings, although they are usually smaller and not as tall as those in Manhattan. The same goes for the Bronx, although this borough has a reputation for being unsafe to live with families if you have just moved.

New York Housing Market Analysis and Forecast

Currently, the sales and rental markets are approaching and even exceeding pre-pandemic prices. The number of apartments sold in Manhattan during the first months of 2022 is higher than any other time in the last 3 decades. The stars are Brooklyn and Queens, that are also making record numbers this year, both in rents and sales.

New York’s real estate market is back on track and it is reaching some historical high numbers. Even the luxury market is peaking like it never has done it before. It is believed that with the “end” of the pandemic, more people will return to the cities, and this will make the prices of NY skyrocket, so now is the time to buy before that happens.

This is good for investors who have enough money to invest in the NY real estate market, but not so good for people who rent or want to buy a home. In any case, it is believed that values ​​​​with historical records will be reached at the end of 2022 and the beginning of 2023 because the best thing you can do is act now.

New York Average House Price (Median Home Price)

To talk about the median home value in NY we will focus on each of the boroughs in particular since the price varies a lot in each one. The median home value, in this case, is obtained thanks to an average between the value of all residential properties; including apartments, houses, and luxury properties, so you can find cheaper properties.

The price of a median home in Brooklyn is $767,000, which is 8% more expensive when compared to the same period in 2021. Most houses in Brooklyn are apartments or condos.

In Queens, the median value is $768,000, only $1,000 more than Brooklyn, but this is because it has suburbs with larger houses, which makes the value go up a bit.

In Manhattan, the value of the median home is $1.2M. This is because it is one of the most expensive cities in the world, but it is also true that if you are here you are in the center of the world. They are generally apartments and most are luxury or penthouses, which makes the value (which is expensive in any case) go through the roof.

In the Bronx, the median value is $700,000 although of course there are parts of the Bronx with higher values. Many apartments or houses in this borough are not regulated, so they are not considered when calculating median home values. In any case, as much as it is known for being an unsafe neighborhood, this does not mean that it is cheap to live here.

In Staten Island, the value of the median home is $760,000, since most of them are residential houses, which contrasts with the large buildings in Manhattan, Brooklyn, Queens, and the Bronx.

Proposed Residential Building Projects in New York

In Manhattan, there are a lot of buildings under construction, and one type of real estate project that is on the rise is building restoration. In this case, buildings that were built in 1920 or 1930 are restored so that the interior is modern, although the facade remains with the details of the time in which it was built. Although they are apartments equipped with state-of-the-art appliances, their interior preserves the aesthetics of the 20s and 30s, which makes them practically luxury apartments.

There are a large number of residential home projects on Staten Island, contrasting with those in other parts of New York State. They are large houses, with 3 or more bedrooms, with 2 bathrooms, and are prepared to accommodate families of 4 to 10 people.

In Queens and Brooklyn, there are some condominiums under construction, as well as in the Bronx. These are prepared to offer houses similar to apartments, with the capacity to accommodate a maximum of 4 people.

Newly Built House in New York City 185 Arbutus Avenue Staten Island NY-10312 – 3 Bed and 4 Baths with 1 Garage on Gross Floor Area 3,400 sqft – Built in 2022 – Price $1,650,000 (4)

Building Costs Per Square Foot for Single Family Homes in the City of New York, USA

Building costs are 31% above the national average in the City of New York, equivalent to the borough of Manhattan (NYC) and higher than Long Island (NYC) by a deviation of 1%. New York is the 3^rd most expensive city to build a house in the USA after Bay City (TX) and Boston (MA).

Class 1 – Luxury Single Family Homes

The building cost per square foot for luxury private homes in New York City ranges from $451.81 per sqft to $692.60 per sqft, with the average being $533.20 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 2 – Semi Luxury Single Family Homes

The building cost per square foot for semi-luxury private homes in New York City ranges from $274.59 per sqft to $420.90 per sqft, with the average being $324.04 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 3 – Best Standard Single Family Homes

The building cost per square foot for best-standard private homes in New York City ranges from $177.51 per sqft to $269.61 per sqft, with the average being $207.82 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 4 – Good Standard Single Family Homes

The building cost per square foot for good-standard private homes in New York City ranges from $129.55 per sqft to $198.66 per sqft, with the average being $152.89 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 5 – Average Standard Single Family Homes

The building cost per square foot for average-standard private homes in New York City ranges from $105.15 per sqft to $161.04 per sqft, with the average being $123.99 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 6 – Minimum Standard Single Family Homes

The building cost per square foot for minimum-standard private homes in New York City ranges from $82.94 per sqft to $127.12 per sqft, with the average being $97.84 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.