NEW YORK CITY, NY – The high rents aren’t the only bad thing about housing in New York City. The Big Apple was named the nation’s third-worst large real estate market in a new study, based partly on the long waits New Yorkers face to sell their houses.
The personal finance website ranked the markets in 300 U.S. cities based on 22 real estate and economic factors, such as foreclosure and unemployment rates.
New York City ranked 281st overall and 61st out of the 63 cities on the list with at least 300,000 people. The only big cities with worse real estate markets were Cleveland and Detroit, reports found.
It takes an average of 149 days until a house is sold in New York City, according to various reports. That wait was long enough to tie for the worst in the nation with nearby Yonkers and Elizabeth, New Jersey, as well as Miami and Miami Beach in Florida, the study shows.
At 13.71 percent, the city’s percentage of delinquent mortgage holders also tied with five other cities — including three in New Jersey — for the highest in the nation.
On the bright side, New York City has the nation’s lowest foreclosure rate at just 0.0028 percent.
New Yorkers who want an easier time buying a house without sacrificing their urban lifestyle should look west to Seattle, which WalletHub ranked first among large cities and No. 8 in the nation overall.
The title of the nation’s best real estate market belongs to Frisco, Texas, which has a much smaller population of about 177,000, according to U.S. Census data.
Here’s a look at the nation’s 10 best and 10 worst large real estate markets, according to online reports. See the full study here.
10 Best Large Real Estate Markets
1. Seattle, Washington
2. Denver, Colorado
3. Fort Worth, Texas
4. Aurora, Colorado
5. Colorado Springs, Colorado
6. Nashville, Tennessee
7. Charlotte, North Carolina
8. Austin, Texas
9. San Jose, California
10. Lexington, Kentucky
10 Worst Large Real Estate Markets
63. Detroit, Michigan
62. Cleveland, Ohio
61. New York City, New York
60. Corpus Christi, Texas
59. Chicago, Illinois
58. Baltimore, Maryland
57. Tulsa, Oklahoma
56. Miami, Florida
55. St. Louis, Missouri
54. Philadelphia, Pennsylvania
Why is New York City Real Estate So Expensive?
New York City is known for its high real estate prices, which can be a barrier for many people looking to buy or rent a home in the city. There are several reasons why real estate in New York City is so expensive:
- Limited supply: New York City is a densely populated city with a limited amount of land available for development. This means that there is a high demand for housing, but a limited supply of homes and apartments, which can drive up prices.
- High demand: New York City is a popular destination for tourists and a hub for business, culture, and entertainment, which attracts a lot of people to the city. This high demand for housing can also contribute to the high prices.
- High property taxes: Property taxes in New York City are among the highest in the country, which can add to the cost of owning a home or apartment in the city.
- High cost of living: The overall cost of living in New York City is higher than in many other parts of the country, which can also contribute to the high prices of real estate.
- Landlord-tenant laws: New York City has tenant-friendly laws that protect renters and can make it more difficult for landlords to evict tenants or raise the rent. This can make it less profitable for landlords to rent out their properties, which can lead to higher prices for rental properties.
Overall, the high real estate prices in New York City are the result of a combination of factors, including limited supply, high demand, high property taxes, and a high cost of living.
Why Do So Many People Live in NYC if it’s so Expensive?
Despite the high cost of living, many people choose to live in New York City because it is a vibrant and diverse city with a lot to offer. Some reasons people choose to live in New York City include:
- Career opportunities: New York City is a hub for many industries, including finance, media, fashion, and technology, which can offer a wide range of job opportunities for people in these fields.
- Cultural attractions: New York City is home to many cultural attractions, including world-class museums, art galleries, theaters, and music venues. It is also home to many iconic landmarks, such as Central Park, Times Square, and the Statue of Liberty.
- Diverse population: New York City is known for its diverse population, with people from many different cultures and backgrounds living and working in the city. This diversity can be an attractive feature for many people.
- Public transportation: New York City has an extensive public transportation system, including subways, buses, and taxis, which can make it easier to get around the city without a car.
- Quality of life: Despite the high cost of living, many people who live in New York City enjoy a high quality of life, with access to a wide range of amenities, such as parks, restaurants, and shopping.
Ultimately, the decision to live in New York City is a personal one that depends on an individual’s priorities and circumstances. While the high cost of living can be a challenge, many people find that the benefits of living in the city outweigh the costs.