Villagómez Grupo Inmobiliario (VGI) only makes informed decisions when evaluating potential investments. While most markets and portfolio managers are driven on perception and speculation, market markers and market makers are fact driven only. When one considers the key market driver that establishes price, supply and demand, the absolute value in New York City real estate is clearly evident.
Demand
People from the entire world move to New York City, and many more aim to do so as well. Every nationality, race, culture and religion is well represented in this city more than anywhere else in the world. Immigrants, both of foreign origin and United States born citizens who move to New York City include businessmen, students, workers, and tourists who wish to extend their stay. Prospective residents who travel to New York City require either a permanent or temporary residence, and these may likely raise families in New York City. These new family members will eventually become independent individuals and may also need a place to live in New York City, so on, and so forth.
Again, the May 2009 Census Bureau report stated that the New York City's population was 8.4 million. The New York Department of City Planning (DCP) stated that the population of the city was 8,008,278 as of April 2000; New York City has experienced an increase of more than 391,722 persons, or 4.9% since then. New York City has far surpassed its 2006 population projections for the year 2010 of 8.4 million. For the year 2020, the DCP has projected the city's population at 8.7 million, and at 9.1 million for 2030. An increase of 300,000 residents over the next decade and almost 700,000 for the following.
Supply
New York City is made up of five boroughs. Of these, Manhattan and Staten Island are Islands; Queens and Brooklyn are found on Long Island; the Bronx is more of a peninsula, and the only borough located on the continent, however, it is still within the city limits, and all continually appreciating in value. Unlike Dubai, New York City is not creating more land by literally building new islands; therefore, land becomes more scarce with every day that passes.Every available space in Manhattan has been, or is being gentrified, thus making it less affordable for the upper middle class, and in this way creating a trickle-down effect.
The South Bronx (bordering northern Manhattan), once full of abandoned buildings and empty lots, was one of the most dangerous places to live in the United States, and is now catering to hard working low and middle income families who are being pushed out of northern Manhattan.
Northern Manhattan, once considered low income, now caters to the upper middle class. This upper middle class trend has also trickled and now Astoria, Long Island City, (found in the borough of Queens) as well as DUMBO, Prospect Park (found in the borough of Brooklyn) and other neighborhoods in all five boroughs that make up New York City find themselves also being gentrified.
New York City Statistics
When considering the above information, you can easily understand how the following data is possible:
1. The median price of a new home in the United States is approximately $218,400.00, while the median price of an existing home is $191,600.00 according to Bloomberg Media. Making the average price of a home in the United States approximately $205,000.00.2. A condo (triplex) was sold in The Mark for $150 million in the 4th quarter of 2007, as reported by the November 8th, 2007 New York Post.
3. July 12, 2007, CNN Money reported parking spaces in New York City are fetching $225,000 per space. Far greater than the national median price of a home.
4. Even storage space has set a record of $1,000/square foot.
5. Forbes Magazine reports the median home sale price in Manhattan is $2.2 million, while the median sale price for a home in Brooklyn is $510,000.00, as reported by Bloomberg Media.
This translates into a profitable opportunity for investors.