Live in New York City once but leave before it makes you hard, said Baz Luhrmann in his speech for a graduating class of a university a few years back. And that is so true. It is very possible that one of the reasons for this is the continuously increasing rent prices in the city. And we’re not just referring to swanky Manhattan here.
Median Rental Price Increased… Again
For the 20th consecutive month, the rent in Manhattan has increased once more – and this time, by 4.5%. This is because of the strong local economy, considering that the area houses the large head offices of various companies all over the world. Sadly, first time buyers don’t get to qualify for mortgages here because of that said reason and the very tight credit condition.
Brooklyn and Queens have also seen an increase in this regard. Even studio type apartments are hard to get by these days.
The Lower East Side and Other Hot (and Pricey) Neighborhoods
If you’ve got the means, you might want to check out the Lower East Side where all the cool and artsy New Yorkers and jet-setters of the world are currently living in. Astoria will be featuring a new skyscraper in its area too; said to fetch at least $1,000 per square foot. The Bay Ridge and Prospect Park are also getting eyed by a lot of buyers.
On the contrary, if you are on a budget, those are the neighborhood which you should veer away from.
Foreign Buyers are Getting Their Slice of the Apple
Rich foreigners, knowing that buying real estate in NYC is a great investment, are not getting left behind in the race to get as much space as they could in the city. Take for example some wealthy Chinese businessmen who have relocated their money from Chinese stock market to New York real estate. And according to a lot of very busy brokers, these foreign buyers are not going away any time soon. While everything else is so uncertain in the rest of the globe, parking their cash in New York is a great business move.
Nevertheless, Everything is Selling Fast.
All the price increase you’ve been reading about earlier seems to be nothing to a lot of people in New York since real estate here is getting lapped up by many. Just a few months ago, a penthouse which costs $38M got sold in Manhattan.
Experts are saying that this is because NYC is not just a place that (rich) people are thinking of living in. It’s a place where they could invest a lot of money on.
FYI: Related Housing Statistics Here are some statistics made just last October which could help you mull over your decision about moving to New York. The vacancy rate in the city is increased only by 0.38%. New rentals (renewals not included) went down 0.4%. Concessions and marketing time also went down 2.4% and 7 days, respectively. Negotiability in terms of listing increased 0.4%
Conclusion
The City that Never Sleeps is one of the most coveted places in the world. Considered by so many as the hub of economy, politics and culture in the world, millions of people all over the globe want to live here – or even extend their week-long vacation to maybe a month (or a year). There’s just something so energetic here; as if every single backstreet and tunnel in the city is pulsing with life. Born and raised New Yorkers would not bat an eye at your decision to live here and get one of those cramped but ultra-expensive spaces in Manhattan.
So if you have the determination to work hard here and get to afford it all, live in NYC and forget what Baz Luhrmann said. It’s an experience of a lifetime, anyway.
