Accommodation in New York City
A huge part of New York City’s residential property is owned by foreigners. Yet, buying, renting or finding accommodation for expats can be difficult and expensive.
Even neighboring properties in many of the boroughs outside Manhattan – like Brooklyn – have reached sky-high prices, though you’ll tend to get more space for the same amount you would spend in the heart of the city. Striking a balance between location, type of accommodation and affordability can be tricky – the reason why two thirds of people in New York rent their homes.
That being said, recent economic fall-out from the collapse of the investment banking sphere has created a market in which buying can be a better deal than renting. However, if you are a short-term expat – less than 5 years - it is still more logical to rent than to buy.
New York City is separated into five distinct boroughs – Manhattan, Brooklyn, Queens, Staten Island and the Bronx. Manhattan is the central borough accessible by bridge or tunnel, and the others are the outer boroughs. Though many expats would prefer to live in close proximity to work, the main business district of Manhattan is the New York City borough with the most expensive real estate – averaging around $2000 a month with few options for family-sized accommodation.
When moving to New York commute time is another essential consideration in choosing a location. New York has extensive public transportation, but there still exist a few noteworthy limiting factors.
The East Side of Manhattan has only one subway line, which is overcrowded, and a promised second subway line is years away due to budget issues. Also, extensive long-term subway improvements means that travel between Manhattan and either Brooklyn or Queens can be torturous, on the weekends especially all the lines seem to be re-routed and travel takes two to three times longer than during the week.
Commuting into the city by car will result in up to an hour wait to get through the main tunnels during rush hour, and parking is either impossible to find, or horribly expensive. If your company doesn’t offer you a parking space, public transportation is a much better option. Trains and buses in and out of the city are also very crowded at rush hour in both directions.
A majority of people live in apartment buildings within the city as the larger affordable townhouses or detached houses can be found farther away from the city centre. The townhouses within Manhattan, though often beautiful, are only available for purchase and cost millions of dollars.
The national housing slump has softened prices but there is still strong competition for good apartments and expats wanting to live in New York should hire an agency to help. They usually charge fifteen percent of a year’s rent. Indicative of the competition, prospective expat tenants should be ready to prove their financial capacity with a credit check, income tax returns, employer’s letter, two months rent, and a security deposit. Rent controlled apartments are notoriously difficult to find because of very low turnover rates.
Although qualifying for a home loan is difficult, home prices in New York are lower than usual so it is a good time to buy. It is possible to find a small one-bedroom apartment for $500,000. Some cheaper options are shared accommodation, rooms to let or living outside of the city.
Even neighboring properties in many of the boroughs outside Manhattan – like Brooklyn – have reached sky-high prices, though you’ll tend to get more space for the same amount you would spend in the heart of the city. Striking a balance between location, type of accommodation and affordability can be tricky – the reason why two thirds of people in New York rent their homes.
That being said, recent economic fall-out from the collapse of the investment banking sphere has created a market in which buying can be a better deal than renting. However, if you are a short-term expat – less than 5 years - it is still more logical to rent than to buy.
New York City is separated into five distinct boroughs – Manhattan, Brooklyn, Queens, Staten Island and the Bronx. Manhattan is the central borough accessible by bridge or tunnel, and the others are the outer boroughs. Though many expats would prefer to live in close proximity to work, the main business district of Manhattan is the New York City borough with the most expensive real estate – averaging around $2000 a month with few options for family-sized accommodation.
When moving to New York commute time is another essential consideration in choosing a location. New York has extensive public transportation, but there still exist a few noteworthy limiting factors.
The East Side of Manhattan has only one subway line, which is overcrowded, and a promised second subway line is years away due to budget issues. Also, extensive long-term subway improvements means that travel between Manhattan and either Brooklyn or Queens can be torturous, on the weekends especially all the lines seem to be re-routed and travel takes two to three times longer than during the week.
Commuting into the city by car will result in up to an hour wait to get through the main tunnels during rush hour, and parking is either impossible to find, or horribly expensive. If your company doesn’t offer you a parking space, public transportation is a much better option. Trains and buses in and out of the city are also very crowded at rush hour in both directions.
A majority of people live in apartment buildings within the city as the larger affordable townhouses or detached houses can be found farther away from the city centre. The townhouses within Manhattan, though often beautiful, are only available for purchase and cost millions of dollars.
The national housing slump has softened prices but there is still strong competition for good apartments and expats wanting to live in New York should hire an agency to help. They usually charge fifteen percent of a year’s rent. Indicative of the competition, prospective expat tenants should be ready to prove their financial capacity with a credit check, income tax returns, employer’s letter, two months rent, and a security deposit. Rent controlled apartments are notoriously difficult to find because of very low turnover rates.
Although qualifying for a home loan is difficult, home prices in New York are lower than usual so it is a good time to buy. It is possible to find a small one-bedroom apartment for $500,000. Some cheaper options are shared accommodation, rooms to let or living outside of the city.
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