While real estate markets throughout the rest of the country have been struggling since the recession, New York City has taken a different path. This may largely be due to the vast diversity in culture and business within the city. In particular, the tech and finance industries have helped transform New York City into a hub of global commerce and culture. The city has always had a reputation for thriving in even the most difficult times, so it’s not surprising that Manhattan and Brooklyn were among the first cities to bounce back after the recession.

Condos helped that rebound immensely, particularly since the market for premium condominiums was supported by investors from Russia, Korea, and China. This helped the real estate market show gains, even while other markets in the state and beyond struggled to achieve sound footing. The market in New York City seemed unstoppable, but the early rise was only setting up the city’s real estate investors for a big disappointment.

While the rest of the country was recovering from the recession, gradually regaining its stride, New York City started to see a decline in their market. The problem might have been initiated by a loss of foreign investors as increased political tensions chased Russian investors out of the city. The problem was exacerbated by high-end real estate deals that lost momentum as market prices began to drop, leaving investors holding the bag for properties that were worth far less than they had anticipated. Finally, there were so many condos on the market that the supply exceeded the demand, driving down prices that much more.

The supply of real estate in New York City continued to swell, leaving investors wary of taking on new projects. Additionally, buyers were hesitant to consider new homes in a market that seemed on a downward spiral. Instead, they were more apt to wait things out to see how low the market would drop.

Eventually, the country would follow suit and home prices across the country would reach new lows. This was old news for real estate professionals in New York, where a dwindling market had become the new normal.

By 2019, things seemed to be leveling off in New York City. Buyers had started buying once again, helping the market to level off. Now, the market in New York is more moderate, encouraging investors and sellers to hesitantly test the waters. While the markets in New York City and across the country are returning to normal, real estate investors are wary of the more volatile market.