In Manhattan right now, rental prices are at all time highs, and some sources say they have hit a ceiling. Prices to buy are also at all time highs but are expected to continue to climb due to foreign demand. What’s interesting is that the annual price to rent an apartment in Manhattan in some cases equals the landlord’s annual cost just to maintain the taxes and common charges on the apartment. So what’s so great about buying a home in NYC? The benefit to home ownership is clearly financial security. However, if one can attain financial security through other means such as growing one’s business, then that individual might not be so foolish after all for renting, especially if that business rate of growth surpasses the rate of growth in the apartment value. Over the next decade, whereby many expect interest rates to rise and inflation to rise, it’s very possible that the rate of growth in apartment value will not be as a high as the last decade. For the past decade, all that we saw were rates going down, which has lifted asset values. Over the next decade, rising rates will negatively impact asset value annual rate of growth.
New York City is one of the most expensive cities in the world to live in. There is, however, a way to get deals on residential spaces. Sublets. Subletting can offer certain perks that traditional leases don’t.
- Furniture included.
- Negotiation on price and terms.
- Cheaper monthly rent.
Renters can potentially get an incredible deal by subletting. Sublets usually have lower monthly costs, because the rate was set months ago and hasn’t been affected by inflation or lack of supply, both of which lead to rapidly rising rental rates.
Where is the demand coming from?
- Corporate employees who are moving to NYC temporarily.
- College students moving to NYC for internships.
- Recent college graduates just starting out in NYC.
Who is looking to unload their space?
- Local NYC families that have outgrown their space and need to move.
- Professionals who are being transferred out of NYC for their job.
- Recent college graduates who are leaving NYC for a job.
- College students who are going home for the summer.
If you want to shop smart, you should definitely consider sublets!
Start searching here.