Why is it almost impossible to buy a house in New York?

Nearly 10 years after the official start of the Great Recession, housing buyouts in New York fell to the pre-crisis level, and housing prices rose. This cannot be said of incomes that have not increased proportionally, so many families cannot afford to buy housing in the city.

Фото: Depositphotos

At a recent summit at affordable prices and in the relevant report, the nonprofit organization Center for New York City Neighborhoods drew a very bleak picture of how few opportunities in the housing market for New Yorkers with low or average incomes, as well as the growing fighting for existing homeowners, writes New York Post.

Who is winning? Investors who doubled the number of houses that they buy every year after the crisis.

“We need to stop saying we're back to normal just because some data is the same as 2009,” said Sarah Gerecke, a city housing official. “In my experience, none of those who survived the crisis remained the same, and this will not happen.”

Not remained the same city itself. Last year, there were more than 1 million homeowners in New York, which is comparable to the 2008 data of the year, but the percentage of homeowners aged 65 and older grew by almost 30% to 325 000 people, while the number of homeowners aged 35 and below decreased by 34%, to 75 000 people.

African Americans and Latinos make up 45% of all families in the city, but only 30% of homeowners.

Many local homeowners do not have enough money for periodic financial shocks, such as unexpected home repairs. Most 65 and older homeowners have low or average incomes, and about 20% of local homeowners spend more than half of their monthly income on housing expenses.

All this leads to a greater risk of default after another unexpected bill for a round sum - even despite the fact that almost 17 thousand cases of home foreclosure are now in the pending process, foreclosure auctions are growing, along with the number of reverse mortgage foreclosures.

Hardworking New Yorkers who want to buy homes often cannot do this. In 2017, a family with an average income of 60 879 dollars could qualify for a mortgage of approximately 292 000 dollars and buy a house for 307 000 dollars or cheaper, reducing the cost by 5%. Given that non-investment sales are around 7400 from 48 300 in this price range, such a family can afford to choose an option from just about 15% of all homes sold this year.

Read also on ForumDaily:

How to find cheap housing in New York: existing apartment lotteries

Life in New York after winning a green card: why everything is good and why we want to leave

How to move out of an apartment in America, not to pay fines

Catch the tail of the American dream: six stories of people who won the green card

New York City's 7 Secret Places Known Only

In New York, launching a new housing lottery with luxury apartments

Named cities with the risk of bubbles in the real estate market

Do you want more important and interesting news about life in the USA and immigration to America? — support us donate! Also subscribe to our page Facebook. Select the “Priority in display” option and read us first. Also, don't forget to subscribe to our РєР ° РЅР ° Р »РІ Telegram  and Instagram- there is a lot of interesting things there. And join thousands of readers ForumDaily New York — there you will find a lot of interesting and positive information about life in the metropolis.