2023 Economic Outlook

A 421-A SEQUEL COULD BE ON THE WAY

The 421-a affordable housing tax break has been off the books for about six months, but many in the real estate industry are optimistic that it will return in some form in 2023. The contentious program provided a tax break for developers in exchange for designating 30% of the units in their projects as affordable. Although the real estate industry argued it was vital to making the economics of affordable housing work, opponents said it was an unnecessary and unproductive giveaway to the industry.

RETAIL VACANCIES PREDICTED TO FALL

Despite the numerous "for lease" signs that have dotted major shopping corridors along Madison Avenue and in Lower Manhattan, the situation is looking up for retail. Rents for retail spaces in Manhattan, one of the hardest-hit sectors in the city, in October saw their first uptick in six years, reaching $607 per square foot.

HOUSING WILL NORMALIZE, SLOWLY

Last year the housing market came off its 2021 high, as elevated interest rates forced some to reconsider buying, sending prices lower. In November there were slightly more condo deals in Manhattan than in previous month even if they were still down a hefty 57% from November 2021. Brokers say the economic gloom will lift in 2023. You can read more here!

Our team is optimistic that 2023 will be a very healthy market for both buyers and sellers. We are here to answer all your burning questions.