Manhattan is a 20 square mile island. 1.6 million people live on this relatively tiny island. So, how's that for demand?
In USA Today's article 'Manhattan: Except for 'very high-end' housing, 'market is quiet',' Noelle Knox says it so eloquently, "the shortage of land tends to magnify the forces of supply and demand." Well, I definitely agree, Ms. Knox. In my last post, I talked about the shortage of doctors... how about a shortage of housing? In Manhattan, $1 million will buy you a median (AVERAGE) home. An average home! Think about what $1 million would buy you in Fort Atkinson, WI...
There has been an increase in condos built in the last year, however. There is now an 11.9 month supply of condos/co-ops, compared to last year's 6.6 month supply. Pricing is becoming more realistic, as well. With the supply up, Jonathan Miller, CEO of Miller Samuel says, "We are seeing sellers be a little bit more realistic in pricing." Well, there you go. The market corrects itself again.
Subscribe to:
Post Comments (Atom)
2 comments:
Isn't it weird how prices are so different in different parts of the US? There's a show on one of the Discovery channels that goes around and takes, like $500,000, then shows what kind of house that would buy you in Wyoming, Madison & LA. Interesting stuff.
Excellent S & D analysis. :)
wow, thats interesting. I can only wonder how the supply (inhabitants of Manhattan) must meet such a high demand. From what we've learned thus far I can hypothesize that the demand for housing in Manhattan is so high due to its prime area and opportunities for those who live there (income, tastes and advertising, expectations for the future).
Post a Comment