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The Most Expensive Zip Codes in NYC (Hint: It’s not 10065!)

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The Most Expensive Zip Codes in NYC (Hint: It’s not 10065!)

It’s hard to picture almost any US top-10 list without New York City somewhere in there. The most expensive US zip codes list compiled annually by Forbes Magazine makes no exception. In fact, Upper East Side’s 10065 heads their list this year, securing the coveted #1 for the first time.

But is 10065 indeed the most expensive zip code in New York City, let alone the entire country, as stated in Forbes? PropertyShark data shows it’s not even in the top 5.

While we don’t claim Forbes published bogus stats on purpose, we find their methodology and choice of metrics inadequate for painting an accurate picture of the housing market.

First, they relied on asking prices rather than closed transactions, saying that by doing so their list would be a reflection of “each market’s current activity.” For their top zip code (10065), the median sale price found by PropertyShark is $1.1 million, while the median asking price according to Forbes data is $6.5 million. Have prices in the Upper East Side gone up 6 times since the closings of the property transactions we used in order to compile the median sale price? Not a chance!

Second, they have not included coops. How relevant are any real estate stats published for Manhattan that don’t take into account half of the borough’s transactions? Not very, and this reminds us of a similar debate on the relevancy of the Case-Schiller Index to Manhattan real estate market.

So how do Forbes numbers compare to our own? See below:

According to our data, the priciest zip code in New York City is in fact TriBeCa’s 10013 with a median sale price of $2.5 million (coops included). Number 2 on the list is 10007, another TriBeCa zip code, proving why TriBeCa has been topping the list of the most expensive neighborhoods in NYC for several quarters in a row.

Take a look at the graphic below to see what are the most expensive zip codes in NYC based on PropertyShark data. Sale prices also reflect coops that have sold in Manhattan since the beginning of the year.

We would really like to hear your opinion on this! Drop us a comment and let us know your thoughts on the methodology and results.

 

 

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5 Comments

  • Rami Carmeli says:

    1. Apples should be compared with apples – in the same way an appraisal will be done. So, coop prices should not be mixed with condos. Rather, coop prices should be compared in various the neighborhoods.
    2. Likewise, condos should be strictly compared to condos….nothing else…not even townhouses etc.
    3. The size of the unit should play a factor. It is really the price paid per sq-ft which is the true indicator of how pricey a neighborhood is.
    4. If one wishes to be even more accurate, adjustments should be made as to factor in the apartment and the building amenities. If certain buildings/apartments have water views, balconies, swimming pools, etc. their price should be adjusted when compared with buildings/apartments which do not have these amenities.
    5. And, yes, it is the actual price paid which should be used. Sellers would love to win the lotto but reality is what reality is.

    I understand that if one just wishes to know where are the most expensive condos PERIOD, then the unit price, rather than the price/sq-ft, might be a decent indication. However, mixing apples and oranges and ignoring the above mentioned factors could be very misleading (in fact, damaging to the point that I would say posting a “let the buyer beware” warning would probably be wise. A super naive buyer may end up buying a studio coop for $2 million in 10013 zip code, thinking he got a bargain, considering your chart shows an average coop/condo price of $2.5 million for such zip code.

  • [...] real estate site Property Shark ran its own list, and 10065 wasn’t even in the top five. Instead TriBeCa’s 10013 was crowned the [...]

  • David Solnick says:

    I agree with points #3 and 5 above. The data should include actual sales only, and should include cost per sf. The other suggestions are not worth the considerable effort, because they will not substantially change the results. I do hope you’ll add a comparison of cost per square foot.

  • Absolutely the only true indicator for real estate valuations, anywhere in the world is the price per sq.ft paid for that property. Zip Codes and postcodes don’t simply justify it, as from one road to another within the same zipcode, price per sq.ft. could vary.

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