Latest posts by Larry Rothman (see all)
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- Questions to Ask Property Management before Buying a Condo or Co-op - May 10, 2018
- Negotiating Issues After A Home Inspection - April 28, 2018
With the current state of real estate in New York and the potential growing bubble on Wall Street, more and more people are looking to diversify investments into real estate and particularly in New York City.
Let us look at the history of New York real estate prices for the past 100 years:
1910’s – The surge in demand for housing, World War I – Sale: $8 PPSF, Rent: $40/Mo.
1920’s – The “Roaring Twenties” - Sale: $15 PPSF, Rent: $60/Mo.
1930’s – The 1929 Stock Market Crash and “The Great Depression” – Sale: $5 PPSF, Rent: $45/Mo.
1940’s – World War II – Sale: $8 PPSF, Rent: $50/Mo.
1950’s – The post-World War II Housing Boom - Sale: $12 PPSF, Rent: $60/Mo.
1960’s – First condo building, World’s Fair, Building Boom - Sale: $25 PPSF, Rent: $200/Mo.
1970’s – World Trade Center Completed, Near Bankruptcy, Finishes Stronger - Sale: $45 PPSF, Rent: $335/Mo.
1980’s – Co-op Conversion Boom, “Black Monday” Stock Market Crash - Sale: $250 PPSF, Rent: $1,700/Mo.
1990’s – From Recession to Lofts and the “Silicon Alley” Dot-Com Boom - Sale: $590 PPSF, Rent: $3,200/Mo.
2000’s – 9/11 to Housing Boom to Lehman – Sale: $1,200 PPSF, Rent: $3,800/Mo.
2010’s – Quick Rebound, Tax Credit and Housing Seasons - Sale: $1,070 PPSF, Rent: $3,500/Mo.
(Source: New York Times & Jonathan Miller)
This clearly shows that for the past 100 years, real estate prices have continued to rise and have appreciated by almost 1,000 times with every decade. The prices doubled from the 50’s to the 60’s and nearly doubled from the 60’s to the 70’s. Once New York City came out of bankruptcy in the late 70’s, international buyers started to take notice of the New York real estate. Prices went up almost six times in the 80’s and more than double again in the 90’s. The average price for sale now in 2016 is $1,470 PPSF while average rent in Manhattan today is $4,374.
by Bernd Thaller / Flickr
There are many reasons to be optimistic about the future of New York real estate: the local economy and its diverse industries that employ New Yorker’s and attract new highly skilled professionals from around the country as well as internationally. Also, the city’s myriad of cultural activities, universities, restaurants, museums, theater, among many others, create a very special and unique lifestyle. New York today is truly a cultural capital of the world that is up and running 24/7.
It fits well with today’s millennials, generation X and baby boomers who are moving back to the city from their “empty nests” in suburbia. New York’s rich history, location, political stability lifestyle and its industries attract investors and foreign buyers alike. Never in the city’s history has it experienced such a high inflow of foreign capital and an interest of foreign nationals to live in New York City either full or part time.
by Marcela / Flickr
The U.S. Census Bureau has estimated New York City’s population at 8,550,405 as of July 2015. This represented an increase of 375,300 residents (or 4.6 percent) from April 2010. The population will grow to 9 million by 2020.
Housing remains and will continue to remain in high demand for many years to come. The notion that the prices are too high does not take into consideration global market, the population as well as income growth in New York City.
By Marcela / Flickr
The local economy no longer solely depends on the economic conditions of New York City, New York State or the United States. Today’s New York industries cater to the world. Finance, entertainment, law, shipping, and technology are just a few of the major contributors to the world economies.
As the saying goes: “Just buy it and forget it.” You won’t be disappointed.New York City’s population