A more accurate way of titling this article might be “Is Buying in NYC an Option for Millennials without a Trust Fund?” and the answer is, yes. However (regretfully, there is a however), with standard real estate prices in Manhattan and the neighboring boroughs, there are significant challenges that are new to the millennial generation.
Owning a home at 25 isn’t realistic anymore. This is true for most places, not just New York City. So, when you throw in a starting price of around half a million for a one-bedroom apartment with high student loan debt and cost-of-living, things begin to get complicated and can feel disheartening. But, there’s always hope if you want to own.
Looking Beyond Manhattan
Coming out of college, I see crowds of people ushering toward Manhattan. They want the lifestyle that the city has to offer, and many can afford the rent when rooming with friends. But by the time you’re ready to buy, unless you’re very close to your friends or have a significant other, chances are you could be going it alone.
But buying can still be an option if you’re willing, able, and determined to save. By looking at neighboring boroughs like Brooklyn, you can find more affordable homes without sacrificing the city lifestyle. Looking outside of Manhattan can often get you square footage for your buck, and give you an escape from the hecticness of the city center.
Benefits of Owning in NYC
Owning a home in NYC can have considerable benefits. Depending on your mortgage and what you are currently paying, sometimes your monthly mortgage bills can be cheaper than rent. It is also beneficial because of the investment value. The neighborhoods of NYC are always changing, and if you can grab a place for cheap now, there’s a good chance that the resale value will increase. Knowing your neighborhood is extremely vital to making a move, and consulting with specialists to find up-and-coming neighborhoods could help you in the long run.
Millennials are Changing the Home Buying Industry
If you live in New York and it’s your dream to be a homeowner, don’t be too discouraged. Millennials contributed over half a trillion dollars to the housing market last year. About one-third of millennials are already homeowners, and many go on to own multiple homes. So, don’t let yourself be discouraged. It’s surprising what planning, determination, and saving can do to achieve your homeowning goals.
Make a realistic plan involving your current expenses about your income. Figure out how much you can save a month, and plan out how many months it will take to afford a downpayment on a home in your budget. After that, stick to your budget, explore mortgage options, and affordable research homes.
It may take longer than previous generations, and you might have to be more creative with your money, but if it’s your goal to own in NYC, there’s always a way to make it happen.