388-bridge-street-2014

Construction in New York City is booming, with the number of new building permits filed in 2014 almost double 2013, and Brooklyn is leading the way, according to a year-end report from New York YIMBY:

While supply still clearly falls short of demand, and prices remain at astronomical levels, permit activity at the Department of Buildings shows a massive increase for last year, with the number of units planned to rise nearly doubling. In 2014, permit applications were submitted to construct 44,825 units across the five boroughs, which is a dramatic increase from 2013′s 22,915 housing units. Brooklyn, the city’s most populous borough, led the way, with the number of new units entering the pipeline jumping from 8,473 to 19,355.

And unsurprisingly, all the construction is pushing up the cost of land. The average price per buildable square foot for development property in Brooklyn increased 19 percent to $154 from $129 in the year, according to a TerraCRG report written up by The Real Deal. Prices are highest in north Brooklyn, such as Williamsburg, with an average of $241 per buildable square foot and some property trading for as much as $539 per buildable square foot.

The trade in commercial buildings was also brisk, with a total of 1,964 deals and dollar volume reaching $6.7 billion at the end of 2014, vs. $5 billion in 2013. The average price per apartment leapt 29 percent to $210,832.

Click through to see a chart from TerraCRG breaking down dollar volume growth by neighborhood.

The YIMBY Report: 2014 Adds a San Francisco’s Worth of Skyscrapers [NYY]
Price Per Buildable Square Foot in Brooklyn Surges in 2014 [TRD]

terraCRG-2014-report


What's Your Take? Leave a Comment