2021: One for the Record Books or a Return to Consumerism

Elegran Insights has taken a closer look at the upswing in activity in the new development market in the first half of 2021.

Economists define pent-up demand as a strong return to consumerism following a period of decreased spending.

Within Manhattan’s new development condominium marketplace, COVID certainly marched in a “period of decreased spending”. So then, instead of interpreting 2021’s impressive number of signed contracts as an exciting new era for NYC real estate, is it perhaps more appropriate to put on technical lenses and view this year as a “return to consumerism”?

Having just passed this year’s midpoint, the first step in exploring this topic is to examine the number of new development condo contracts signed during the 1st half of both 2020 and 2021. As one would expect, we see that contract volume during the period Jan — Jun 2021 is much more robust than the previous year, 952 and 402, respectively.

CLICK HERE TO READ THE ENTIRE INCOME APPROACH RESEARCH PAPER