Hurricane Sandy Sparks New York City Real Estate Boom by Kelsey Uh

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Hurricane Sandy devastated many parts of New York and surrounding areas, according to Mayor Bloomberg in NY Daily News November 4, 2012 issue, ruining over 8,000 trees, some 8 million homes were –or still are- without electricity, damaging thousands of homes and buildings, shutting down businesses temporarily or permanently, and leaving nearly 40,000 people homeless. The damage has created housing demands as well as opportunities to developers.

Inevitable huge demands for rental properties, small apartments, new condos sales, commercial space, extended-stay hotel rooms and even vacant land will emerge as these some 40,000 people affected by Hurricane Sandy seek new or temporary places.

Now, as New York City -yet again- astonishes the world with its tenacity and drive, experts are predicting their largest real estate surge in decades. Across the board, the real estate industry will feel the effects much sooner than other industries: inevitable huge demands for rental properties, small apartments, new condos sales, commercial space, extended-stay hotel rooms and even vacant land will emerge as these some 40,000 people affected by Hurricane Sandy seek new or temporary places to live and begin to re-build their lives.    

Needless to say, the New York real estate market; which was already lacking inventory, is preparing for a huge and much needed surge. As agents and brokers scamper to satisfy the need for rental properties, vacant land, new entry level units, new home sales and the remodeling of damaged properties the demand will grow higher. According to Stribling’s latest State Of The Market report in Businessinsider.com Nov. 9, 2012 issue, Manhattan real estate inventory hasn’t been this low since the early 2000s, and residential residences for sale are around just 6,000 available units. Real estate agent, Kelsey Uh reports that this Sunday open houses were crowded.

In addition, real estate investors and developers are seeing the need to build new towers and to expand existing ones in the New York City area. Both real estate investors and unit owner’s will enjoy knowing that ‘renters’ and ‘leasers’ will abound in the city moving forward.

Also, the confidence and momentum created by President Barack Obama’s aggressive “…No bureaucracy. No red-tap…Message to the Federal Government” on Thursday definitely peaked, long-term global interest in New York City. Especially, devastated areas such as New Jersey and Lower Manhattan “…which will take a significant amount of time to build…” stated by US President Obama in the same message.

Business.Time.com Oct 31, 2012 issue published an estimate by IHS Global Insight which put Hurricane Sandy’s damage and lost business in New York City around $60 Billion. Conversely, economists expect actual property damages from Hurricane Sandy to amount to more than Hurricane Irene, which cost $15.8 billion just last year. Likely to make The 10 Costliest Hurricanes in U.S. history, Hurricane Sandy will still be well below the worst — Hurricane Katrina, which cost $108 billion in 2005.

by Kelsey Uh

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