Even before the pandemic, we couldn’t have said that the New York real estate market was in good shape. The price of both rent and purchase of property had been soaring for some time. An overwhelming majority of New York residents were forced into renting, and purchasing a home was untenable. Naturally, the real estate market had stalled and suffered. The pandemic brought along its own issues and demands. Forced to remain indoors and isolated, most New York citizens were not even in a position to look for a new home, especially with moving services being periodically unavailable. So, what is the future of the housing market? To come to a viable conclusion, we will first have to discuss its current state. And will New York real estate recover? Hopefully, our post will be able to answer that question for you.
Owning
Now, one of the most challenging questions to answer when looking for a new place to live is whether you should rent or buy, doubly so in New York. Frankly, the costs of buying a house, even with a mortgage, were somewhat out of reach for most average families. The price, averaging at about four hundred thousand dollars and easily climbing to double that in ‘prestigious’ areas, is punishing on its own. Added, then, are the utility and maintenance costs. The latter of which most renters do not need to deal with. Curiously, however, the popularity of buying your own home has surged in the post-pandemic. This likely has to do with how important the house has become. It is a place where we have been spending increasing amounts of time, so freedom to arrange it as we wish is a boon most can’t pass up.
Renting
As a direct consequence of what we have previously discussed, the popularity of renting has not entirely waned but is much lower. This has given the market a much-needed boost. And, compared to the lower costs in the post-pandemic, it actually made renting even more economically viable. It is not something that we should easily discard since it means families can afford to move to larger apartments or houses while paying the same rent. In addition, lower costs make it easier to find movers when, for example, going through relocation to a new neighborhood in Manhattan. Besides, the advantages of renting property are such that it is unlikely for the practice to suffer too much. Being able to move on a whim, with nothing but a short-term lease to worry about, is an attractive prospect. Particularly for your professionals only starting their careers.
The effects of the pandemic
As previously mentioned, a lot of people are putting a lot more importance into their homes. This voraciousness for new, more open, and larger houses and apartments is a positive thing driving the future of New York real estate. Plus, since the pandemic has also significantly slashed the prices of both rent and purchasing homes, many people are rushing to take advantage of the situation. And these people are correct to do so! With the demand heating up once again and with the previous notorious New York prices, the cost of acquiring a home is once again slowly climbing. Make no mistake – the costs are still lower than they were back in 2019. But they will likely continue to grow. All these trends have left a lot of people learning the know-how required before seriously investing. All in the hopes of taking advantage of the circumstances.
The effect of popular amenities
One of the reasons the costs are climbing is the stringent amenity demands of the post-pandemic house owners. The popularity of private offices, better ventilating systems, and high-speed internet is now a regular thing. After all, they are all things we need if we want to properly work from home! In addition, people are hungry for the outside yet still leery of socializing. This has increased the popularity of on-property amenities such as pools, gardens, and home gyms. People are eager to invest in luxury apartments and multifamily housing, with small secluded areas and facilities being a popular feature in both. Overall, the effect on the housing market is positive. With the price of renting an apartment or a multifamily housing unit lower than the cost of buying a house, many people are willing to splurge on amenities.
Future predictions
Overall, we can more or less safely conclude that New York real estate will once more flourish. With the popularity of investing in one’s home, the various attractive amenities popping up in the newer units, and the dread of potentially being stuck at home again, the market is receiving a lot of attention and investment. However, it is also an undeniable fact that housing prices will continue to climb. The popularity of the housing market and the ever-present competition in it ensure this. For renters, if you are fond of your current lodgings, you might want to consider signing on for a long-term contract with the current renting fees. Similar advice can be given to prospective house owners. Waiting for a dip in prices is inadvisable since it is unlikely to occur any time soon, particularly with the efforts to keep another pandemic from happening.
Final Word
Will New York real estate recover? The current answer, barring changes, is yes! The question of whether or not you should get involved in it yourself, however, is complex. This is a good time and opportunity to invest, but it can be costly without the proper capital. And the costs are rising! The safest bet, despite the recent homeownership popularity, is likely still renting. With it, you can ensure that you can keep holding to the current favorable rates without investing too heavily. Of course, if you want your own house no matter what, this is the time to make a move!
