HARLEM — Townhouse prices are rising three times faster in Harlem than in the rest of Manhattan, according a recent analysis of home sales, and at this rate buying a place in the neighborhood could cost as much as it does in Downtown and Midtown in the next decade.
"At an average yearly growth rate of 15% compared to 5% for Manhattan, Harlem could close the price gap by 2028 if the current pace keeps up," wrote PropertyShark analyst Andra Rus in a report published last week.
The analysis predicts that by 2028, Harlem's average price per square foot will be $3,102 and Manhattan's will be $2,132, Rus predicted.
Average prices skyrocketed by 171 percent in Harlem between 2009 and July 2017. That was the biggest increase in any Manhattan neighborhood during that period, according to the analysis.
However, Harlem's current average of $642 per square foot is still well below Manhattan's average of $1,838. That is why homeowners and investors are continuing to look uptown when buying property.
"When it comes to real estate prices, Harlem is still a cheaper option compared to the rest of Manhattan, but it’s been growing so rapidly that one may wonder how much longer it will stay cheaper," Rus wrote.