New York Real Estate Market
The New York real estate market is vastly different than your traditional small-town market where you can easily purchase multiple-family homes in a way to produce recurring revenue.
New York City real estate market is very similar to a metropolitan real estate where the real estate market in that area also includes the surrounding suburban areas around the city.
Although, that difference is expanded into different states with New Jersey and Connecticut also being a part of the New York real estate market.
This is because New York is a very large (and congested) location. The total area of New York City covers about 468.484 square miles with a population about 8.1 million. In essence, that’s about 17 people who have to share a square mile with each other.
However, with a little understanding of the politics that surrounds the real estate of New York City (because, there is definitely politics involved with the New York City real estate market, it should be easier to navigate the area much better.
The City and Population
As of 2016, it is estimated about 8.5 million people are currently living in New York City and about 19.7 million living in the state altogether.
Out of all the states in the United States, it is ranked 7th in population density.
The average price for a house in New York begins at $500,000 and only increases upward from there. The reason why household prices are so incredibly high is because the population who lives there are about to afford.
People in New York have the average annual income of $58,005. Therefore, this is a market who is used to high prices and has the means to be able to afford it.
The New York real estate market has diverse geography within it, such as New Jersey, Pennsylvania, Connecticut, Massachusetts, Rhode Island, and Vermont. These are adjacent real estate markets to look towards as a constellation price if investing into the New York real estate market proves to be overly expensive.
Most of the real estate markets in New York that are the most populous counties of all are either nationally or worldwide such Kings County (which has 2.5 million people living in Brooklyn), and Queens County (with about 2.2 million living in Queens).
These racial ethnicity make-up of the area are 65.7% (with 58.3% who are non-Hispanic), African-American make up about 15.9%, with Asian making about 7.3%, and the rest would be considered other.
The gross state product in 2015 for New York (as a state) was $1.44 trillion. That is about 12th or 13th largest economy if it was ranked independently as its own country!
It’s important to bear in mind that New York City also has Wall Street, too which adds to its powerful vehicle of state product that the state boasts.
Alongside with Wall Street, the state also houses the New York Stock Exchange and NASDAQ, two of the largest exchanges in the entire world.
Wall Street altogether accumulated $40 billion in 2012.
The state also houses Silicon Alley, which is a tech-focused hub for entrepreneurship and technology in markets such as biotechnology, digital media, software development, and game design. This is effectively supported by New York’s fiber optic cables throughout the entire state.
Tech Valley, another tech-focused hub is focused more on computer hardware unlike Silicon Valley that is entirely focused on strictly software. Tech Valley is focused on STEM fields.
It is also important to remember that the creative entertainment industry brings New York about $9 billion annually steadily in 2015.
The tourism market is also favored in New York, too. Thanks to tourism, Broadway was able to sell about $1.27 billion worth of ticks.
New York as a state where there are high level
Real Estate Pricing
Now with the understanding about the population, the size of the land, and even how New York can accumulate so much revenue as a size, it’s understandable to how high New York real estate prices can be.
If you are looking to buy apartments in the city that well-to-do people can afford, Manhattan County is your best option to do that.
However, if you are having trouble getting those apartments but you are looking to rent apartments to lower-income families (of working-class) or twenty-somethings starting out after college, then you can rent out apartments to Brooklyn real estate market.
Knowing who you are marketing to is your best bet to ensure that you are able to generate consistent revenue from tenants who are reliable in paying their rents.
Of course, the real estate market doesn’t just apply to tenants in apartments. It can also be applied to commercial real estate with businesses buying office space and paying rent on time, every time.
With a state that is making $1.44 trillion approximately on an annual basis, the New York real estate is large opportunity that seems to remain consistent.