The housing cost in New York City is spiraling upwards with inadequate supply of affordable housing emerging as a serious issue. Affordable housing is the biggest issue in the city and as a remedy; the state government is offering tax incentives to encourage New York real estate developers to build projects with less expensive units that might not otherwise be built. However, the New York real estate developers of five Manhattan luxury towers want subsidies without including affordable housing. The demand for New York apartments for rent continues to surge. As per the Reis reports, it is estimated that just about 4% of the U.S. apartments nationwide were vacant in the second quarter of 2013. The average apartment vacancy rate nationwide fell by 10 basis points in the third quarter to 4.2 percent. The report also noted that the weak economic recovery and the job market were hindering robust rent growth. That pushed up the rents by three percent this year.
The national vacancy rates now stand at 380 basis points, which is below the cyclical peak of 8 percent that is observed right after the recession that ended in 2009. Coming to the Manhattan borough, the preliminary third quarter data show that the median price of Manhattan apartment for sale rose by 3% over the past year (2012) to $870,000 which is its highest level in over four years. The median listing price increased by 5.8% since six months ago and by 9.5% since year ago. The overall inventory declined by 20.7% compared to six months ago and by 27.5% since last year. The biggest declines in inventory occurred in the Upper West and Upper Manhattan. In Manhattan, there were 26.1% fewer new contracts when compared to six months ago but 21.4% more since 2012.
According to the MNS report, the median price per square foot for new developments in Manhattan jumped by 15% during the third quarter. A 3.34 percentage drop in inventory somehow boosted the increase in price that has been greatest in the Midtown West and Chelsea. Some of the New York City’s most prestigious waterfront property can be found in the far reaches of Brooklyn but this new listing at 2458 National Drive in Mill Basin is available at a price tag of $30 million. It offers more than 60,000 square feet inside and outside with a gated compound that has two separate houses providing 23,000 square feet of interior state of art of living spaces. It includes the seven master bedroom suites with full water views, 14 full baths, four kitchens, five staff rooms, and elevators to all levels, gatehouse and indoor parking for seven cars.
The numerous condos for sale in NYC offer not only greater flexibility but also affordability. However, before buying the condos the real estate buyers must look for some of the merits and demerits of condos for sale in NYC based on the factors such as freedom, security, amenities, neighbors, storage, greenery, fees, maintenance and resale value of the condo units.