What you’re really getting for your tiny $1M apartment

Naturally, the answer is more about financial stability than square footage

New York /
Oct.October 18, 2014 05:00 PM

As we all know, a million bucks in one city doesn’t necessarily equal a million bucks somewhere else. And New York City would fall into that “somewhere else” category.

Taking A Broader View Of The New York City Market
For those looking at purchasing a home in New York City, the broader economic data shows great news on the one hand, and a disappointing reality on the other.

 

First of all, the New York City area real estate market has performed quite well over the past 10 years. The Case-Shiller Home Price Index for the city has consistently outperformed other major U.S. metro areas since the real estate bubble imploded. That means home prices did not fall quite as far as those in Miami, Phoenix or elsewhere. That’s the good news for homeowners in NYC.

However, other major metropolitan areas have rebounded much more strongly since 2012. As the chart below demonstrates, the Case-Shiller 20-City Composite Home Price Index is more than double the price appreciation in New York City.

Bringing The Data Together
So what do you get when you buy property in New York City? More than anything else, you get stability. The nation’s most populous city has a robust real estate market, with plenty of demand driving prices above national averages and keeping them there when problems arise in the general real estate market.

Sure, you might have to fork over $1 million or more just to buy a tiny one-bedroom apartment, but at least you can rest easy knowing your equity in the home is more stable than if you put your hard-earned dollars into a home in another market.


Related Articles

arrow_forward_ios
The state has opened 52 more investigations into potential fair-housing law violations tied to the Newsday report (iStock)
Agents named in discrimination exposé face discipline from state
Agents named in discrimination exposé face discipline from state
1209 Dekalb Avenue in Brooklyn. (iStock, Kutnicki Bernstein Architects)
Industry suffers setback in 421a class action suit
Industry suffers setback in 421a class action suit
An index tracking applications for mortgages to purchase homes decreased 5 percent. (iStock)
Frenzy ending? Mortgage requests fall 5%
Frenzy ending? Mortgage requests fall 5%
(iStock/Illustration by Kevin Rebong for The Real Deal)
March madness: Homes sold faster than ever last month
March madness: Homes sold faster than ever last month
February were 10.4 percent higher than last year. (iStock)
Home price growth hits 15-year high
Home price growth hits 15-year high
(iStock/Illustration by Kevin Rebong for The Real Deal)
Foreclosures and evictions could be halted for rest of 2021
Foreclosures and evictions could be halted for rest of 2021
The four-bedroom home in Silver Spring, Maryland (Photos via Realtor)
Overheated? DC-area fixer-upper gets 88 offers — 76 all-cash
Overheated? DC-area fixer-upper gets 88 offers — 76 all-cash
FEMA overhauled the National Flood Insurance Program, which will result in savings or stable premiums for most homeowners. (iStock)
FEMA flood-insurance overhaul goes easy on homeowners
FEMA flood-insurance overhaul goes easy on homeowners
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...