New York City has some of the best real estate in the world—and some of the priciest.
But what if it lost its value? This is something anyone who owns or invests in NYC real estate worries about, at least from time to time. Thankfully, there are three firewalls in place that prevent the depression of New York City home values.
Before I share what these firewalls are, I’d first like to remind you of what our NYC real estate market was like back in 2008. Compared to people in other markets across the country, homeowners in NYC ZIP codes lost the least equity. With that in mind, let’s turn our attention back to the three firewalls I mentioned earlier:
1. The trains and infrastructure. You might not expect it, but NYC’s train system and infrastructure play a significant role in helping local real estate retain value. Why? It’s simple: NYC’s public transportation system makes it much easier for a large number of people to live and work in the city. It also allows for a huge tourist population, which, of course, helps the economy.
"New York City real estate is both incredibly precious and incredibly stable."
2. The bodies of water. Thanks to the East River, the Hudson Bay, the Atlantic Ocean, and other, smaller bodies of water, NYC is completely landlocked. And, at this point, it has all been developed, meaning the only place to grow is up. It also means that real estate here is both incredibly precious and incredibly stable.
3. Generational wealth and low debt. While people in other markets tend to buy homes for 5%, 3%, or even 0% down, people in New York City generally buy properties for 20% down, at least. In fact, 38% of all NYC home sales are cash deals. This means our market is more stable than most. Property here is far less likely to be sold in a distressed situation like bankruptcy or foreclosure.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.