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I think in NYC many real estate buyers are really speculators. They don't buy to live there, but because the prices are expected to go up. With this increased d

by gizmo 11y ago

I think in NYC many real estate buyers are really speculators. They don't buy to live there, but because the prices are expected to go up. With this increased demand the price for houses keeps going up, but the price to rent is based on how many people want to live in NYC. In most areas of the country there is a balance between renters and buyers. People may prefer one or the other, but they will switch to renting or buying to save money. This keeps the market from going out of whack. NYC is different because for investors renting isn't an alternative to buying, hence the mismatch.

lhopki01 11y ago
London is an even more extreme example of speculation in the property market. There are no restrictions on foreign ownership. In South Kensington an area of London 1 in 50 homes are designated as long term unoccupied. Buy-to-leave is a well known term in London and it's even a sensible decision. London property appreciates at a rate greater than 10% a year.