Real Estate Rental In New York
The real estate market is always difficult to predict. There are even problems with analyzing the current state at different locations. For example, we can say that US real estate is seeing an increase because there are many foreigners that see an opportunity in it. On the other hand, if we look at the real estate market in New York and how citizens are affected by the constant changes with the economy, we will notice a slight difference. Vacancy is still at a low level and prices for rentals have increased from last year; the combination of the two makes it very difficult for owners to fill out their apartments for a long time.
New York remains a good target. Studios and one room apartments are the ones with the biggest price increase while two and three room apartments are a bit cheaper than they were. This makes living in New York very expensive, no matter if you choose to rent or buy and it seems that prices will not change in the upcoming year.
One of the main reasons why the New York real estate market is similar with most of the ones in USA and has this problem is the fact that banks no longer offer long term loans or the option to mortgage your house to get the necessary funds.
The requirements have gone up and the doors are shut for most Americans. Things don’t seem to change anytime soon, something which also encourages citizens to stay put and not take any unnecessary risk. Although the vacancy rate is at about 1%, it doesn’t seem like it will increase.
Given the overall state of the real estate market in the US, it would be safe to say that New York was not affected as bad as other regions. There are still a lot of wealthy people interested in this location. Another important thing is that the luxury market in New York is doing well, despite the economic and financial problems. Foreigners, mostly European, can take advantage of the dollar which is very low, and they can purchase real estate without the need of a mortgage, usually with cash.
The bottom line is that New-Yorkers will still have to pay high rents and they should expect the same out of 2012 unless banks start offering loans and mortgages again.