The luxury apartment market in large metros like New York City and San Jose, CA, has been slowing over the past year as demand is offset by a flurry of supply hitting the market. That is the result of developers responding to the pickup in demand for high-end apartments following the recession as consumers were deterred from homeownership and young professionals sought job opportunities in major urban centers where they opted to rent instead of buy. A forecast last month by real estate listing website StreetEasy suggested a shift in New York City’s housing and rent prices, with growth in Manhattan next year expected to be the slowest of all the boroughs for housing and the second slowest for apartment rents, in the wake of an easing in the luxury apartment segment. Housing and rent price increases in Brooklyn and Queens, meanwhile, are expected to continue in 2017. With the top-tier of the luxury market cooling, developers are focusing on more moderately priced properties.
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