If you’re interested in living in New York City, there’s good news. Real estate in the city is becoming more affordable, making it easier for people to call New York City home.
The population of New York grew to over 8.6 million last year, but that doesn’t mean there isn’t room for continued growth. New Yorkers continue to look for places to live. Although the housing market is tight, prices aren’t reflecting it.
Census survey data has shown that there is a record-breaking number of new housing being built, creating the third-highest vacancy rate since 1965. Renters now spend less, on average, than they would have spent three years ago. Even better, incomes rose by around 11 percent, while rents only went up by 8.2 percent. Even single-family homes and residential real estate has seen a decline in pricing, dropping 7 percent in value over the first quarter of 2018.
With increased supply, the amount people pay drops, helping everyone live more affordably in the city. A growing population and a high vacancy rate help the city absorb the growth of population while maintaining the real estate market at stable levels.
Fluctuations in the market are normal. There are, of course, some areas where New York City is just as costly as ever. However, if you’re looking to invest, now may be a great time to buy property. With more homes than incoming population, you can get a deal that may appreciate in the future, giving you a solid investment to rely on as you age or focus on building a rental portfolio.
Source: Globe St., “New York City Housing Is Becoming More Affordable,” John H. Banks, May 15, 2018