State: New York
The New York City (NYC) real estate market is considered a "gateway" real estate market because of its history of sustained growth, stability, and appreciation.
New York City can be difficult for individual real estate investors and property owners to enter. It has higher prices, property taxes, and closing costs than most markets. Fortunately, it's not impossible to penetrate.
NYC real estate is not as affordable as Chicago, another gateway market, but it's not as expensive as Los Angeles. In fact, three of the city's five boroughs are still relatively affordable for real estate investors and first-time homebuyers.
Real estate investors can find nearly every property type in New York City's property listings. Whether you're interested in investing in a co-op apartment, townhouse, multi-family housing, single-family home, new development, or foreclosure, New York City has a real estate investment opportunity for you.
Think of NYC real estate; you'll likely envision everything from tiny co-op apartments to luxury condominiums. If you've ever seen Friends or Sex in the City, you may think of supers, subletting, and rent caps. The NYC real estate market is much more diverse than that.
New York City is divided into five unique boroughs for real estate investors to consider. They are Brooklyn, Bronx, Manhattan, Staten Island, and Queens.
A few other areas of note are Long Island, an urban, densely populated island just east of New York City with plenty of residential property; Tribeca, a neighborhood in west Manhattan along the Hudson River with plenty of new development properties; and the Upper East Side, another Manhattan located along the east side of Central Park with higher property values. No matter what you buy, your New York investment property will generate rental income.
New York City is the most populous and densely populated city in the U.S., And it has a robust rental market. Just over 68% of its 20 million residents are renters. That's roughly 13.6 million New Yorkers who need rental properties.
According to Realtor, the median listing price in New York City is $936 per square foot with a median sale price of $878,000. Zillow's Home Value Index reports an 8.2% change since last year. The median rent in New York City is $3,810 per month. The average cap rate for each borough is 3-6%.
New York City presents a lot of opportunities for real estate investors to increase their cash flow and earn passive income.
The New York City economy is the largest municipal and regional economy in the U.S. It's considered the world's leading financial center and is a global hub for business and commerce.
The city's primary industries include financial services, healthcare, business services, trade, and education. NYC is home to Wall Street, One World Trade Center, and 45 Fortune 500 companies. They include JP Morgan Chase, Verizon Communications, Citigroup, Metlife, Pfizer, and Morgan Stanley. These employers provide stability and jobs that attract new, young professional residents worldwide.