New York City is known for its expensive housing. There is even a political party called the “Rent is Too Damn High Party,” which received tens of thousands of votes in the 2010 election. Well the average monthly apartment rent in NYC has finally broken $3000 for the first time.
Some neighborhoods, especially in the Manhattan area, homes can be worth way over a million dollars. Rent is high because prices are high, and prices are high because of demand. The US real estate market is recovering quite well. Brooklyn homes rose 15% in the past year, and in Queens, the median price is up nearly 10%. As more people want to live in a large city, real estate is bound to get more pricey.
The second most expensive place to rent in US is San Francisco at $1999 per month. The average US apartment rent is only $1062 per month. In Canada, an apartment within the city center of Toronto would rent for $1500 to $2500 depending on size and location. In Montreal, it’s $1000 to $1500, and in Vancouver, it’s $1300 to $2900.
It’s not completely fair to compare cost of living on dollar figures alone because New York residents make on average more than Vancourites. So let’s compare real estate prices to how much someone’s projected to make. The higher the ratio, the less affordable a city is for housing.
I don’t think housing is over valued anywhere in North America. Cities like Vancouver have expensive houses because people here value their homes and value the idea of owning where they live. Real estate is one the most popular topics when people here are having a conversation. But maybe in another part of the country owning isn’t as important. In the end it’s all about supply and demand. As long as a city doesn’t overbuild, their real estate market should do fine 🙂 If I had the money I would buy an apartment in New York. Despite how expensive it looks, the demand will continue to be there to hold up its value. And $3000 of rental income a month doesn’t sound bad at all 😀
Random Useless Fact:
During the first two years of a baby’s life, new parents will miss six months of sleep on average.