Private outdoor space: a New York City dream that has turned into a must-have for many in the era of COVID-19 lockdowns and working from home. So, we wanted to know: how much more does that outdoor space cost you compared to the pre-Covid world, and does it differ between Manhattan and Brooklyn?
For this study, we looked at Manhattan and Brooklyn sales from July 2018 – November 2019 (“pre-Covid”) and July 2020 – November 2021 (“post-Covid”). July 2020 was selected as the “post-Covid” start date as it is when in-person showings were allowed to resume in New York City. Only useable private outdoor spaces physically connected to the unit were considered.
Manhattan
Condos and co-ops in Manhattan that have outdoor space have always cost more. But, how much more?
In the pre-Covid period, the average price of homes with outdoor space was 15% more than a unit without a private outdoor space. Their price-per-square-foot was 9% higher, and their median price was 31% more.
Post-Covid, the average sales price of a Manhattan pad with outdoor space was 28% higher than a unit without. Their average price-per-square-foot was 21% higher, and their median price surged to a 39% premium. All of these numbers reflect greater premiums than the pre-Covid period.
What is most telling in this analysis is the disparity in appreciation between units with outdoor spaces and those without. For homes with outdoor spaces, their average price was 4% higher than those with outdoor space pre-Covid, their price-per-square-foot was 3% higher, and their median price was 4% higher. These units continued to appreciate, even while the broader market showed declines.
For units without outdoor space, their post-Covid average price was 7% less than pre-Covid, their price-per-square-foot was 8% less, and their median price was 2% less.
Clearly, we are looking at two very different markets. While prices dropped and discounts increased in the immediate aftermath following the resumption of in-person showings, homes with private outdoor space appreciated in value, and have continued to do so while the broader market has recovered.
Brooklyn
Like Manhattan, condos and co-ops with outdoor space in Brooklyn commanded a premium over units without outdoor space both pre- and post-COVID.
Pre-Covid, the average price of a Brooklyn pad with outdoor space was 18% higher than a unit without. Their average price per square foot was 1% higher, and their median price was 14% higher.
In post-Covid Brooklyn, these homes appreciated in value relative to their non-outdoor counterparts, but not at the same rate as Manhattan.
The average price of a unit with outdoor space compared to one without was 20% higher post-Covid. Their average price per square foot was 4% more, and their median price was 18% more. Compared to pre-Covid units with outdoor space, their average price was 15% higher, the average price-per-square-foot was 12% more, and their median price was 22% higher.
Still, units without outdoor space also showed considerable improvements, as the entire borough was more in demand throughout the pandemic.
However, these price increases were not as strong as units with private outdoor spaces. The average price for a unit without private outdoor space was up 12%, their average price-per-square-foot increased 9%, and their median price was up 18%.
Concluding Remarks
Private outdoor spaces have always cost more, plain and simple. However, they are appreciating at a faster rate in the post-Covid world than pre-Covid, likely brought on by lifestyle changes and the work-from-home phenomenon, which will continue into at least the first quarter of 2022.
While the broader market in Manhattan saw discounts rise and home values decline, at least in the short term, homes with outdoor spaces did not witness a decline at all.
The trend was still evident in Brooklyn, although to a lesser extent. Part of this can be explained by the neighborhood makeup of the borough, as it is less dense overall and affords many residents easy access to parks and other outdoor recreational facilities.
We expect homes with outdoor space to continue to trade at a premium going forward, as they have in the past, although their appreciation relative to the overall market should normalize in 2022.