Every year, millions of people comb through apartment listings, looking for the perfect place to rent. There are a number of reasons these individuals might be focusing their search on apartments rather than houses, ranging from cheap apartment prices to preferable locations. However, depending on the market these potential tenants are looking in, their search might be more difficult than others: for example, Manhattan, a famously expensive and exclusive market, is currently seeing record high prices for its available apartments.
Apartments in nearly every New York City borough are known to be expensive, due to a limited supply of housing and the city’s reputation as a hub of business and culture. Because of the latter feature, wealthy renters from around the world have begun flocking to the area, particularly Manhattan, driving up prices even as the number of listings decreases. Recently, studies revealed that the average apartment in Manhattan went for a record $1.72 million. This topped the previous market peak of $1.591 million in 2008 and was also considerably higher than prices in the area in 2013.
While these figures represent a robust real estate market, this level of success could end up creating problems in later years: for example, while inventory is currently low, sellers and builders are rushing to become part of the lucrative market, which could cause a sudden and damaging drop in prices if the supply expands too rapidly. Additionally, because the top of the market is doing the best, all apartment prices in Manhattan and New York City are likely rising as a result, making it more difficult for non-millionaires to find apartments in the area.
Despite the challenges of this housing market, however, apartments in Manhattan are likely to continue to be popular among overseas buyers: American apartments are not only lower, but the prices for New York City apartments themselves are less expensive than those in London, Hong Kong, and other major centers. For tenants in the United States, however, it might be wise to start considering other markets. One-bedroom apartments in Tyler, Texas, for example, rent for an average of $618, and the cost of living is one of the lowest in the country, making it far easier to rent an apartment one can afford. Find more on this here.