Can You Afford A Home In New York City?

New York City is a beloved place to live due to its diversity. It has been considered as America’s melting pot where you can hear over 800 languages spoken. It has a unique energy unlike any other city on the planet. The 24-hour fast paced lifestyle makes New York City one of the best places to live. Whether you live in a home or an apartment, you can literally find anything you want within a five-block radius. There are several desirable areas of New York to live in such as: Harlem, Astoria, Brooklyn Heights, Coney Island, Staten Island and the Bronx’s Little Italy Tevfik Arif Doyen. It is home to some of the most historic landmarks like the Empire State Building, The Statue of Liberty, Grand Central Station and St. Patrick’s Cathedral. Traffic in New York can be an issue but it doesn’t have to be for you. You can jump on the subway for a short 30 minute ride to anywhere else in the state. Or, take the bus, walk, ride CityBike or hire an Uber. With all of these great qualities, it’s easy to see why so many people have flocked to New York City to purchase real estate.

Prices in Brooklyn and Queens have remained at record highs for years. However, in 2017 Brooklyn showed a slowdown. In the first quarter, Brooklyn’s average sales price peaked at $795,000. By the third quarter, it decreased to $770,000. Home buyers opted for the Queens area over Brooklyn due to its more affordable prices. This has lead to a slight rise in the average sales price for the Queens area.

With all of this being said, foreclosures are on the rise all across New York City. The number of defaults have hit the highest peak in eight years. Just last year, over 3,000 properties were up on the auction block in New York City. This means, the amount of foreclosures have doubled since 2015. Two of the hardest hit cities were Queens and the Bronx. Manhattan, one of the wealthiest cities in New York, has also seen an increase in the amount of homes up for auction. It saw the biggest residential foreclosure in its history when the One57 full-floor condo defaulted. This wasn’t just any ordinary condo you might find in New York. Worth $22.5 million, it became the first foreclosure on Billionaire’s Row.

Based on the media sales price, Tribeca still remains one of the top neighborhoods to live in New York City. The number of sales dropped slightly last year however, the median sales price increased by $500,000. Soho is also a highly sought after area in New York and came in second with a slight decrease in median sales price.

For many, home ownership in New York city can be a difficult achievement. HSH is a loan information publisher that reported that it takes an annual salary of about $100,000 to purchase a basic apartment or home in New York City. Loan requirements to purchase these homes are generally a 20% down payment, a fixed 30-year mortgage at a rate of 4% and a debt-to-income ratio of 28%. Thanks to Long Island, New Jersey and Pennsylvania, the median home price has gone up from $419,000 to $680,000.

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