By Howard Morrel & Leslie Hirsch

People often ask us what long-term trends we see shaping the future of real estate here in New York City. We’re out there every day, constantly talking to investors and  developers about where they are placing their bets on the future–and it’s certainly part of our job to act as weathervanes for our clientele: buyers, sellers, and investors alike. So let’s get it all out in one blog! Here’s how we see the winds blowing for the next 10 years or so in the marketplace.

International Buyers Returning to NYC

For starters, we expect a resurgence of international buyers in the NYC market as global travel restrictions have eased and economic conditions stabilize. These buyers often seek luxury properties and contribute significantly to the high-end market. New York City has a brand-name that resonates with people all over the world. The New York City real estate market has weathered many economic storms and has proved to always be resilient. This is why foreign buyers have historically purchased here as a hedge against their own economies

Multi-Generational Living in New York

There is a growing trend towards multi-generational living, where families are looking for properties that can accommodate multiple generations under one roof. This demand is driving the design and development of homes with flexible spaces that cater to the needs of different age groups and stages of life. Flexibility of space has become popuar: home offices that can be converted into guest rooms, nurseries, caregiver rooms etc. 

Conversion of Office Buildings to Residential Spaces

With the shift towards remote work, we’re seeing underutilized office buildings get converted into residential spaces to address that need. This transformation is helping to meet the demand for housing in desirable urban locations. NYC has been discussing major zoning changes to adapt to the new reality. Areas that were restricted to commercial use are now being considered for residential use.

Luxury Senior Residences

The aging population is creating a significant demand for high-end senior living options. Luxury senior residences in a condominium-like setting  that offer top-notch amenities, healthcare facilities, and community spaces are becoming increasingly popular.

Green Living in New York City 

Sustainable and eco-friendly living is becoming a major priority for both developers and buyers. Green buildings with energy-efficient systems, sustainable materials, and eco-friendly amenities are in high demand, and we expect that demand to increase.

Brand-Name Luxury Towers

Inspired by developments in cities like Miami, we anticipate more brand-name clothing, car, and lifestyle brands creating luxury towers in NYC. Examples include the Aman Tower, Armani Residenes, Faena, The Four Seasons, Cipriani,  and others.  These branded residences offer a unique blend of luxury living and exclusive brand experiences, attracting affluent buyers looking for a distinctive lifestyle.

Smart Home Technology 

The integration of advanced smart home technology is becoming a standard expectation, trending towards more of a given than just a bonus. Properties equipped with the latest in home automation, security, and energy management systems are highly sought after.

Wellness-Oriented Developments

We see an increasing focus on wellness-oriented developments that prioritize health and well-being. Features such as fitness centers, spas, meditation rooms, longevity innovation, and outdoor spaces are becoming essential components of new residential projects, rather than a “nice to have.”

Mixed-Use Developments in New York

The demand for convenience is driving an increased popularity of mixed-use developments that combine residential, commercial, and recreational spaces all in one location. When done right, these developments can create vibrant, self-sufficient communities that offer residents a seamless urban living experience. It’s a global trend, and a true reversal of the determined effort to separate commercial from residential that characterized the second half of the 20th century.

NYC Zoning Changes

Anticipated changes in NYC zoning laws are likely to open up new opportunities for development and repurposing of existing spaces. These changes could lead to innovative projects and increased flexibility in property use, which could support all the above New York real estate trends.

Where should you place your bets? Contact us at Morrel Hirsch & Advisors, and let’s talk!

All the best,

Howard & Leslie

Howard Morrel and Leslie Hirsch are the founders and leaders of the Trusts & Estates Division of Christie’s International Real Estate Group, and the principals of Morrel Hirsch & Advisors, a leading New York luxury real estate team.