What is the average cost of a home in New York? It’s been known for a very long time the average price of a home in New York is incredibly high. The number continues to climb for many reasons. Let ‘s have a look at what these reasons might be. We will highlight a few here. The city is even talking about rent control. We’ll see how it can impact real estate investing. We will also cover some facts on micro-apartments and how they’ve been influencing the price of real estate specifically in New York.
Average Real Estate Cost In New York Neighborhoods
The average price of a home in New York varies quite a bit depending on the area of Interest. The cost in Brooklyn was $788,000 in 2017. The average price in Queens was just over $450,000. The amount of a home in the New York area is influenced not only by the supply in the area but also the cost of rent. The reason for this is simple. If people are renting for an extended period, the issue becomes equity. I’ve heard Cody Sperber the clever investor say people should buy if they plan to stay in NYC longer than three years. They’re better off purchasing because they would reach the Tipping Point where they would start to build equity.
Rent Control In New York, Good Or Bad
In New York, rent control has become a very hot topic because the Landlords’ rates are incredibly High. This discussion continues to come up time and time again because people who rent are spending all their money on the rent and cannot afford to set money aside. If people aren’t able to save any money for the down payment, it can stifle the real estate industry. Rent control is a disincentive overall for people trying to purchase. The reason for this is simple. If people are happy with the current rates they’re paying their landlord, they will not want to purchase a home anytime soon. This process can slow the market. Rent control will price out future Generations if it comes into place.
The Popularity Of Micro-Apartments
Something else to keep an eye on in New York City is the popularity of micro-apartments. Micro-apartments are small apartments usually under 400 square feet. They have become famous for no other reason than their affordability. Most people have mixed opinions on these as a place to live. Some people say these apartments can make real estate investing difficult in city centers. A lot of Real Estate Investors are worried people will resort to these smaller apartments instead of buying a home. I think these places are targeted more towards millennials happy to have a place close to work. They just want a place to park their bike. Other people see this as a positive because it can free up some of the rental stock. This demographic may eventually move into a multifamily hone which is an opportunity. People with this perspective feel this helps to keep things moving in the pipeline which can ultimately be a positive.
New York is a fantastic location to invest in condos. This area also appeals to many different types of home buyers. Although expensive, people value having access to amenities. This Market may not be for everybody, but the buyers will sort themselves out in the end. If you currently live in New York and want to know what your home is worth. There are tools available to help with this. In a sense, a buyer in NYC would almost be more qualified because they know they’re dealing with expensive locations already.