Unless you happen to have piles of money or a few properties already in your name, it’s easy to get hugely discouraged by New York’s real estate, but also to soothe yourself with thoughts of one day buying at least something of your own, then sitting back, letting values accumulate, maybe even renting it out to make some extra money because it’s yours and you can do what you want with it. But even that may not be such a foolproof idea.
As reported by Quartz earlier this week, while U.S. housing prices are re-gaining momentum and rose around 14 percent in October from the same time in 2012, in New York’s exploding real estate market, the annual gain was actually only 5 percent. Which is pretty atypical—generally speaking, property values in big cities shoot up much faster than national averages, not the other way around.
Anyway, none of this likely means that New York real estate is about to get cheaper (or that it’s not a good idea to get your hands on some if you have the means), but if you were hoping to kick back and wait for the money to pile up—or get into the flipping business—it might be a slower process than expected.
Follow Virginia K. Smith on Twitter @vksmith.