According to a recent report from Prudential Douglas Elliman, the Manhattan rental market continued to make great strides during the fourth quarter, which could make investing in a home for sale in New York City a safe bet.
The report showed that rental prices during the fourth quarter increased by 9.5 percent on a year-over-year basis from $2,950 to $3,121 per month. This spike in the rental rate could indicate that the occupancy rate in the Big Apple is increasing, which can add fuel to housing demand.
As the cost of rent continues its upward trend, a growing number of current renters could start to reevaluate monthly payments and determine that purchasing a home in New York City could be a more sound investment since mortgage rates have been hovering below 4 percent for six consecutive weeks.
During the past five years, Manhattan's rental inventory remained at a steady 5,245 units. However, the inventory took a 10 percent dive in the fourth quarter to 4,721. As the rental inventory thins there could be a subsequent spike in demand, making the purchase of a home for sale in New York City a potentially great investment.
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