Is It a Good Time to Buy a Two-Bedroom Apartment in Manhattan?
Being the most densely populated of the five boroughs of New York City and a key commercial and financial center globally, Manhattan has expensive housing. According to different surveys, New York is consistently listed among the most expensive cities in the world and this has played a key role in pushing up real estate prices in the borough of Manhattan.
In fact, in 2015, the median price of a home in Manhattan went up to $1.2 million from $980,000 the year before. This represents a rise of over 17% in just a year, which is pretty impressive in terms of appreciation. However, if you had enough resources to buy a two-bedroom apartment in Manhattan, should you actually do so? Going by the different economic and demographic indicators, which we’ll review shortly, the answer would be in the affirmative.
A robust history of price increases
Property in Manhattan has become more expensive since the United States has started to recover from the recession of 2008. Featured home resale prices in Manhattan have grown at a fast clip in the past few years, as shown in the chart above.
This establishes the fact that as a real estate investment, Manhattan has proven to be promising in the past few years. However, lately, there are specific areas in Manhattan that have overtaken others in terms of appreciation. This is where a potential buyer needs to be careful when investing in a two-bedroom apartment, whether it be for self-use or for renting out. We’ll discuss this further in the next part of this series.