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.