As a Real Estate Agent in NYC I am constantly baffled by how expensive housing is in this city.
but this apartment I listed today has to be the smallest apartment I have seen yet. not only that but costs 2,000 a month.
This is the kitchen and living room. for reference the width of the room is about 6 feet wide. the entire apartment is less then 300 Square feet.
And this is the bathroom. thats what you get for $2,000 a month.
now with all of this being said this apartment is newly renovated and nice and clean which adds to the value. It is also in one of the most desirable/expensive neighborhoods in the city. you can find something larger if you go into a less desirable neighborhood. 2,000 is pretty entry level for this city though its very hard to find something for less then that in a safe area.
I would be interested to see how much 2,000 a month gets you where you live.
Here - which is a small town in Germany - for $2000 (1800 Euro) you get a 5 bedroom villa with a large garden. Something like you have shown may cost about 250 Euro, but is hard to find. Many single people look for cheap places to rent.
Most average incomes here are below 1800 Euro, so a rent of that amount is outside the realistic budget for most people.
In the major cities, like Berlin, Munich ect. this looks entirely different, though. Which is a huge problem for many people there.
It is not entirely unlike that here in America. The further you get from the major population centers the cheaper housing gets. However, jobs are becoming more sparse and incomes are much lower in many small towns. Housing affordability is becoming a problem countrywide.
Yes, I heard about that. Also in regard of property prices in the US. From what I know, buying a house is much more common in the US than it is in Germany. But the price bubble for property, plus the deteriorating income value in a big part of the population, makes it impossible for many to handle the neccessary mortgage payments. Resulting in foreclosures and bancrupted families.
I always wonder why people are so eager to live in the big cities. True, there are more jobs, but also much more people looking for a job. And the pay is not really so much better, either, not enough to make up for the higher expenses.
I do not know much about homeownership in Germany. However, in America owning a home is synonymous with obtaining the "American Dream" and home ownership is great. The problem is that the cost of housing has increased a lot more then incomes have. Many people take out mortgages that they can barely afford and if they get layed off or have a major medical issue they can no longer keep up with the payments and lose their house. Also in many small communities the entire economy is based on one thing like a manufacturing plant. If that plant closes the entire towns economy collapses and the houses become worthless. This is a problem you are seeing in many towns across the country.
As far as why people are so eager to live in big cities from my prospective most high paying jobs are located in major cities. The common route people take is to live and work in the city when they are in their 20s and then settle down and move to a surrounding suburb and start a family in their late 20s early 30s. Of course I am only talking about one subset of the population.
Well, also here most people - if not everybody - would like to live in his own house. But due to building regulations, land prices and other factors, it is more expensive to achive that. You can expect the cost for a simple new small house, with almost next to no garden space around it, to about 350.000 Euro upwards. That is simply too much for a family with a average income.
To the big cities: its true that the well paid jobs are mostly there. However, the majority of people who move to the cities have no chance in hell to ever get one of those well paid jobs. They have low paid jobs, for almost the same pay as they get in smaller cities. And yet they have to cope with the higher price level. That doesn't really make sense.
No you're right it does not make
Sense. Yet people do it anyway. I'm sure when they make the move they believe it will better their situation. Unfortunately it doesn't always work out that way
ahhhhhhh, I miss NY. Which neighborhood?
This apartment is in Chelsea. It is actually Right near Googles NYC HQ.
What about the Bronx, Brooklyn or thereabouts? Anything cheaper but decent?
yes you can get apartments that are cheaper and bigger in many parts of Brooklyn and Almost all of the Bronx. There are a few areas in Brooklyn that are just as expensive as in Manhattan but there are also other neighborhoods that are still very nice and you can get a much better deal. I personally prefer Brooklyn to Manhattan anyway. That is where I live.
Good!