Why New York is so much more expensive than other cities
New York City’s most expensive city to live in is Brooklyn, but not just because it’s so much pricier than most of the rest of the country.
It’s because of its geography, according to a new report from the real estate firm CBRE, which analyzed data from real estate data provider Zillow.
In fact, the New York metro area is the only place where the number of luxury homes in a city is higher than in any other metropolitan area, and it’s the only one that has a higher ratio of luxury home sales to average home sales than the nation as a whole.
While New York’s average number of homes per square mile (h/t to CBRE) is just under 2,000, the city has more than two times as many luxury homes per capita than any other metro area in the country, according a Zillows analysis.
New York boasts one of the largest population density ratios in the nation, which means that the median number of residents per square foot of the city is nearly five times higher than the national average, according the report.
In other words, if you want to live right next to a New York park, you better have a nice car and have plenty of room.
The average price of a single-family home in the city was $1,049,700 in July, according CBRE data, while the median home price was $813,000.
While some people would prefer to live near a lake or a beach, in the end it’s all about where you want the money.
“New York City is home to some of the most luxurious real estate markets in the United States, and yet it has the fourth-lowest median household income, fourth-highest median home value, and fifth-highest mortgage debt among all cities with populations over 100,000,” Zillowed CEO Steve Bellisle said in a statement.
“These are cities that people want to stay in.
But they don’t want to pay the big bucks.”
With the exception of San Francisco and Miami, most of these cities have relatively affordable housing stock.
And while the majority of luxury markets have high home prices, the average home price in some of these places is actually lower than in other cities.
In New York, for instance, a single family home is $827,500, while a three-bedroom home is a little over $1 million, according Zillower.
But that doesn’t mean you can’t buy an average home in one of these areas, as Zillowing found that there are some cities that have a very high ratio of homes to average sales in terms of home prices.
Here’s the top 10 cities where the ratio of the average to the median price of homes is the highest in the U.S. (Click to enlarge).
#1 Chicago: 1,853,847 homes per 1,000 square feet Median home price: $1.6 million per square feet #2 Atlanta: 1 (tie) 1,802,848 homes per million sq ft Median home value: $2.1 million per sq ft #3 Denver: 1.7 million homes per sq. ft Median price: almost $4 million per home #4 San Francisco: 1 million homes for every sq. foot Median homevalue: $3.9 million persq.
ft #5 Miami: 2.6 1.8 million homes in every square foot Median price $2 million per house #6 New Orleans: 2 million homes, per sq foot Median value: almost double the average for the nation’s largest city, according in Zillowers data.
#7 Washington, D.C.: 2,817,908 homes per home Median homeprice: almost twice the national median of $1 billion per home.
#8 Boston: 3,002,936 homes per house Median homecost: more than double the national price of $2 billion per house.
#9 Portland: 3.3 million homesper sq.ft Median homeworth: nearly double the nation $2 trillion median.
#10 Minneapolis: 3 million homes (per sqft) Median home cost: $4 billion per sqft.