Tech Boom Upgrades Expectations In City's Housing Market
Developers say a boom is on its way, thanks to what many are calling New York's "Silicon Alley". NY1's Jill Urban filed the following report.
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Wall Street jobs and bonuses have always been the engine that helps drive the real estate market here in New York City. Well now, it seems, another industry is becoming a driving force and is having a significant impact on the market.
"The New York tech scene is having a real impact on the real estate market. It’s interesting. What we are seeing is that the business of business is now technology and more and more companies are hiring tech workers. These people need a place to live," says RealDirect CEO Doug Perlson.
Yes, more and more tech companies have created what some call a “Silicon Alley” here in New York. Between the boom in tech jobs and the plans for a new Cornell Tech Campus on Roosevelt Island, New York is emerging as a technology hub.
"Hot neighborhoods include DUMBO, there’s lots of online media there. Williamsburg, a big area for young folks making money in tech as well as Chelsea and Flatiron areas where companies like Google have set up shop," explains Perlson.
Another hot spot for tech workers is Long Island City, which has seen a boom in tech sector employees for quite some time and is likely to continue.
"Long Island City is booming as it is, but I think this campus is going to add a new surge to the whole real estate boom over here. Whether it’s new rental buildings or condos, a lot of the people who will be heading to this new campus are going to find Long Island City very appealing," says Eric Benaim of Modern Spaces.
When it comes to new construction, developers are so in tuned to this demand that they are offering new amenities to help draw in these high tech buyers. For example, iPod and iPad stations, free Wi-Fi and high-tech smart appliances.
Now these buyers are incredibly savvy because they know how to navigate every app and online resource, something sellers need to keep in mind.
And while it’s always been Wall Street bonus season that has been an exciting time for the market, Benaim now says it’s now all about the IPO. Now each time a tech company offers an IPO, it will also offer sellers a whole new stock of big buyers.