Should the sudden spike in prices within the last year be concerning? Lori what’s your take on this trend, and the million $ question of what you think the next year will look like based on your experience and feel for the Hoboken housing market? Given the new developments/future potential of Hoboken, will this city’s home prices continue to rise, or do you expect a decline inversely proportional to rising interest rates?
Do you really foresee Hoboken averages to be above $600……to $650……..etc…..? Seems crazy! Our sq footage cost is still about half of NYC’s, but at what point will Hoboken’s per sq ft cost plateau out of pure practicality compared to NYC?
If you listen to and believe the Fed and other economists out there, interest rates are not rising any time soon. These prices don’t seem crazy to me at all when I compare them to Manhattan or even Brooklyn. Hoboken is and always will be an alternative to those areas because of our transportation and proximity to the city. I don’t know what ‘pure practicality’ means. I do know how supply and demand operate on pricing. Like the island of Manhattan, we are geographically limited in ability to add new inventory. That will always limit supply. Will demand change or decrease? With the constant improvements I see to live here (and I’ve been here over 15 years) I don’t believe so.
Hoboken is definitely a great deal compared to across the river. But if they start building additional 3 bedroom inventory so that more families stay for the long haul, I suspect the resulting demand to live here would skyrocket to the point where Hoboken becomes nearly as unaffordable as Manhattan & Brooklyn. That’s the single biggest improvement to live here that needs to be made.
I really do think that the lack of family-friendly inventory is what’s holding Hoboken back from being a mostly owner-occupied city. Right now the proportion is what, 70-30 renters to owner-occupied? That’s because it’s mostly a transient city where people stay for awhile as renters and then move on and buy homes elsewhere when they start popping out puppies. Swap that the other way, and property values here would be through the roof mostly avoiding the peaks and valleys in the graphs above. It would also be helpful if they got the school system issues fixed. Imagine what that would do for property values.