Issue 112 - NYC Real Estate Recovery in a Post-Covid World

425 West 50th Street PENTHOUSE-D

234 East 23rd Street A19

21 East 22nd Street 2DE

150 Rivington Street 4A

75 Grand Street 4W

641 Fifth Avenue #33/34EF

101 Leonard Street 5/D

500 Park Ave Penthouse-39

450 East 52nd St #10

1001 Fifth Avenue 110C

22 Central Park South Unit 3

508 Canal Street #2

115 Morton Street #5B

501 Third Avenue #6E

107 Morton Street GB

300 West 145th Street #6G

53 West 53rd Street 24D

53 West 53rd Street #38C

53 West 53rd Street #PH78

320 East 42nd St 2403

1593 Deerfield Road

136 East 56th Street 8H

51 Crosby Street 3

53 West 53rd Street #30B

53 West 53rd Street #66

53 West 53rd Street #72B

53 West 53rd Street #21A

53 West 53rd Street #53A

53 West 53rd Street #17B

53 W 53rd St #PH76

53 West 53rd Street #71

53 West 53rd Street #20B

53 West 53rd Street #16F

Issue 112 – NYC Real Estate Recovery in a Post-Covid World

August 1, 2025

It has been more than half a decade since we first heard of Covid-19. The ensuing pandemic quickly changed everything — including the real estate market. Thankfully, we have collectively shaken off our initial panic and confusion and are now armed with perspective. Oh, how far we have come, especially when it comes to housing.

According to many top-tier press predictions, big-city real estate — including in New York City —wouldn’t recover until well into 2025. Happily, several recent articles, particularly one by Matthews, a real estate investment firm, state that we are “far ahead of schedule, the city has seen jobs rebound, population recovery, and an increase in demand for quality assets.”

To see this progression, here’s a quick recap: Starting in the spring of 2020, pandemic restrictions instituted in NYC led to many rapid changes — namely, job loss, doing anything and everything we could remotely, and changing the way we ate, slept, worked, and played. They changed how we connected with people and, most of all, reframed our priorities. All these factors played into forcing many people out of large urban centers and into more rural areas.

Without the need to commute, many people longed for living spaces in less populated areas where they could enjoy fresh air and exercise, and more importantly, connect with family. As a mother of two under the age of 11, it was a very formative time for me in terms of human connection and cultivating familial intimacy. Having eye contact and being fully present with family members in close proximity was so valuable.

Those who stayed in NYC wanted homes set up for comfort and functionality, with larger spaces, in-unit offices, more functional kitchens — Who wasn’t learning how to bake sourdough bread? — and private outdoor access.

As an agent selling in such an unknown time, I initially had no surefire idea how to advise clients. I was receiving calls from owners of truly beautiful homes who were frightened and longing for safety, security, good air quality, a sense of community… They were relocating to places that offered those things: the Hamptons, Westchester, Connecticut, Telluride, and Florida. There was such a mass exodus that we initially saw NYC become somewhat of a ghost town.

We also saw an unprecedented boom in the secondary market, bringing those prices up exponentially. The vacancy rate was so tight, but people were willing to pay exorbitant amounts just to get out of cities and replant themselves next to trees, mountains, lakes, and oceans.

According to a recent article in Fast Company, “From summer 2020 to spring 2022, the number of active homes for sale in most housing markets plummeted as homebuyer demand quickly absorbed almost everything that came up for sale.”

However, NYC is ever resilient. We quickly adapted and made many changes to accommodate renters, buyers, and sellers in a state of flux. The industry pivoted. We became used to “the new normal.”

Enter: digitization. We all quickly became familiar with Zoom, using it when buying and selling apartments. In one particular instance, I sold a one-bedroom apartment on East 22nd Street for $2 million without the buyer ever setting foot in it! She had lived in the building before relocating to Europe and needed to return to Manhattan. The deal was literally finalized by just showing her each room via video — opening and closing all closets and drawers — because she couldn’t be there in person. It was the first time I’d ever seen someone buy something without actually walking through the property.

Who would have thought that this digitized trend would persist with such intensity into post-pandemic times? According to an article last month by luxury publication Haven, the digital revolution has become the industry standard. It has led to real estate’s rebound.

“The most visible transformation lies in the widespread digitization of real estate transactions and marketing. The Covid pandemic changed business culture in NYC permanently through a necessary integration of digital platforms to conduct commerce and make deals,” Haven notes.

“What once seemed like temporary measures have become the industry’s new foundation, with virtual tours, digital staging, and online closings now representing standard practice rather than innovative alternatives. This digital transformation extends far beyond convenience, fundamentally altering how properties are marketed and experienced,” the article continues.

I believe our desire to reconnect with nature has carried forward into the demand for a sustainable and environmentally supportive lifestyle choice.

Simultaneously, there’s been a shift in focus to properties with quality-of-life amenities, such as infrared saunas, cryotherapy, pool rooms, and relaxation rooms featuring meditation, yoga, cold plunges, and hammams. They have all become the rage. Alongside this is the more advanced technology of AI, which seamlessly integrates home automation for various functions, from temperature control and audio/video systems to adjusting lights and window shades.

Old-school key elements such as natural light, open views, indoor air quality, and well-appointed rooms are still in demand, and will always remain so.

All in all, City Journal captured the rebound perfectly: “New York is surviving — if not thriving — defying the worst pandemic-era predictions. Few today would call the city ‘completely dead,’ as James Altucher infamously did in 2020.”

The article explains that the city’s economy appears to have bounced back, something unimaginable in spring 2020: “In December 2019, New York had a record 4.160 million private-sector jobs. By December 2024 (the most recent data available), that number had grown to 4.246 million—a nearly 2.1 percent increase. Considering that one in five jobs had vanished by May 2020, this is no small feat. More economic activity is also visible on the transit system, though work-from-home habits persist: subway ridership hovers by just above three-quarters of pre-Covid levels.”

So, it is no surprise that real estate is also slowly rallying once again. The most prominent comeback is the co-op market, which was decimated in Covid’s wake.

A mid-2024 Partnership for New York City survey of white-collar firms found that in-office employment had recovered to slightly below three-quarters of pre-Covid levels. While most workers are back in the office, including those in financial institutions and other large corporations, many companies are working on a hybrid schedule that includes in-office/work-from-home arrangements.

I think Covid — such a wakeup call! — reminded us that nothing is certain. It has given us perspective on what is truly important: family, community, and connections. The work-life balance has become a priority. The pandemic forced many people to look inward, to embrace and reorganize their internal landscape to survive such a confronting and confining time.

This shift is clearly reflected in the current market — which, according to Haven, “reflects a lasting evolution, not a temporary shift.” Digitalization, lifestyle amenities, and the focus on community are now vital elements in New York City real estate, driving up premium prices across all segments of the market.

I concur with Haven’s endnote, which prophesizes: “Looking ahead, the market’s success will likely depend on its ability to continue evolving in response to changing lifestyle preferences and technological capabilities and demand.”

It seems that based on these demands, people have gravitated towards quality-of-life neighborhoods — those that provide a healthy live-work balance. These areas have garnered pricing and property sales well above the anticipated. The new lifestyle choices have already been reflected in myriad ways. For example, theaters have moved up their ‘curtain’ times from 8:05 p.m. to 7:30 p.m., and many restaurant kitchens are closing at 9 p.m. instead of midnight. It appears that a unified consensus about the desire to slow down has influenced a change in operational hours, as well as within living environments.

Here’s to continued hard work, while maintaining a bit more balance and recognizing that if NYC were ever going to fall, it would have been when it experienced a mass exodus. But in true New York City form, not only did it rally, but it also superseded every expectation, as it always does. Have a great summer!

Issue 127 – The Price Isn’t the Price

November 1, 2026

A new calculation is changing what a New York apartment is actually worth. For decades, NYC real estate has been obsessed with price per square foot. However, now we may be entering the era of cost per year.

Consider two apartments of the same size, price, amenities, light, view, and location. If one has $6,000 in carrying costs and the other $11,000, are they really worth the same amount?

Increasingly, I would argue they are not because buyers aren’t simply purchasing apartments anymore. They are purchasing the economics of the buildings they’re in, which are starting to matter enormously. Think: insurance, labor, utilities, repairs, taxes, assessments, energy compliance, staffing, capital improvements, and reserves. While monumentally important, none of these photograph well, but all determine whether an apartment is easy to own — and eventually sell.

We have always understood that certain characteristics affect value: a lower floor trades differently from a higher one, an awkward layout matters, a protected view commands a premium, and poor light equals a discount. However, I contend another discount is related to the aforementioned carrying costs.

The sexiest amenity in New York real estate may soon be a healthy balance sheet. That sounds less exciting than a lap pool, unless you are the one writing the checks. Operating costs in New York have been rising, putting pressure on building budgets and making previously deferred capital projects harder to ignore.

The 2026 New York City Price Index of Operating Costs — which tracks expenses for the city’s rent-stabilized building stock — illustrates the broader pressure. Over the five years through 2026, insurance costs in that index increased more than 80%. Maintenance increased 29%, utilities more than 26%, administrative costs more than 21%, and labor nearly 16%.

Those figures aren’t a direct proxy for every condominium or cooperative in Manhattan. But they illustrate something anyone involved in operating New York buildings already understands: buildings are getting more expensive to run.

One mistake buyers can make is falling in love with the apartment and treating the building as secondary. In New York, you aren’t just buying four walls; you’re buying into a small economy. You’re inheriting its management decisions, staffing structure, physical plant, reserve philosophy, insurance exposure, and capital planning.

A building that deferred maintenance may appear inexpensive today because it hasn’t yet charged owners for the work it needs. That doesn’t necessarily make it inexpensive. It may mean the bill hasn’t arrived yet. Conversely, a building that recently completed an expensive façade project, replaced major mechanical systems, or invested in energy efficiency may initially appear less attractive because owners have already absorbed those costs. We need to consider which building presents the greater risk over the next decade. The answer isn’t always obvious from the monthly maintenance number.

Buyers understandably love low carrying costs, and brokers value them because they make a property easy to market. But low monthly charges deserve as much scrutiny as high ones. A good broker asks: Why are they low? Is the building extraordinarily well managed? Does it have other income? Are the reserves substantial? Or has the board resisted increasing common charges while postponing expensive work?

An important distinction exists between efficient and underfunded. A well-run building with appropriately funded reserves may ultimately be far more economical than one with artificially low monthly charges followed by recurring assessments. It’s not just the number that is meaningful, but the story behind it.

Few words cause more anxiety in a New York transaction than “assessment.” Even here, context matters because not every assessment is a red flag. An assessment financing a necessary capital improvement can actually strengthen the building. A new roof, elevators, façade work, upgraded mechanical systems, or energy improvements may protect long-term value.

The more important questions a sales pro considers are: What is the assessment for? Why didn’t reserves cover the expense? Is it part of a thoughtful capital plan or the latest in a recurring series of emergencies? And, perhaps most importantly, what comes next? A $500 monthly assessment with a clear end date concerns me considerably less than a building with no assessment, minimal reserves, and several million dollars of foreseeable work.

New York’s environmental requirements add another layer of complexity. Local Law 97 places emissions limits on many large buildings and creates increasingly stringent requirements over time. The encouraging news is that the overwhelming majority of covered privately-owned buildings are currently meeting the applicable limits.

But buyers should still understand what their particular building is facing; Has the Board commissioned the appropriate studies? What capital improvements may eventually be required? Has money been allocated? Is compliance incorporated into long-term planning? The concern isn’t whether a building faces a penalty today; it’s whether the building has a credible plan for tomorrow. That, increasingly, is part of due diligence.

New development creates its own version of this problem. Buyers are understandably attracted to pristine buildings with spectacular amenities and, sometimes, surprisingly reasonable initial common charges, but what will the building actually cost to operate when it is fully functioning?

Pools, spas, private dining rooms, screening rooms, landscaped terraces, playrooms, fitness centers, and mechanical systems all require staff, maintenance, and money long after the sales office closes.

The glossy brochure tells you what you’re getting. The budget tells you what you’re buying — both matter.

This conversation also requires nuance when comparing co-ops and condos. A co-op’s maintenance can initially look dramatically higher because it often incorporates expenses that a condo owner pays separately, including the shareholder’s proportionate share of the building’s real estate taxes. A condo may show a lower common-charge number while property taxes sit alongside it.

So, comparing maintenance to common charges without understanding what each includes is meaningless. The correct question isn’t: Which monthly number is lower? It is: What is my total cost of ownership, and what am I receiving in return? I believe strong building economics will increasingly become an amenity in their own right.

Brokers spend an immense amount of time learning how to talk about marble, appliances, ceiling heights, views, and finishes. We should be equally capable of explaining the financial health of the building we’re selling, because that is a big part of valuation.

None of this means price per square foot is irrelevant. It’s still an important metric. But like any metric, it becomes dangerous when used without context.

I’ve spent my career watching New York buyers pay premiums for things that cannot easily be replicated, including light, views, ceiling height, architecture, location, outdoor space, great proportions. But I always add another thing to the list: financial soundness. That may not command the same emotional response when someone walks through the front door. But increasingly, it may command something just as valuable – confidence, which matters in uncertain markets.

For years, we’ve asked buyers how much apartment they can afford. Now we need to start asking them how much building they can afford. Because in New York, you don’t just buy the apartment — you inherit the economics beneath it.