Market Overview
8.3 Million People, Not Enough Apartments
New York City has a permanent housing shortage. The city adds roughly 30,000 new units per year against demand for 50,000+. That math doesn't change. It's why Manhattan median condo prices sit around $1.1 million and Brooklyn keeps climbing.
NYC's property market has a unique split: co-ops and condos. About 75% of Manhattan apartments are co-ops, owned through a corporation rather than direct title. Co-ops are cheaper, but their boards can reject buyers without explanation. For international buyers, condos are almost always the better path.
The post-pandemic shift didn't kill NYC. Manhattan sales volume in 2024 surpassed 2019 levels. Brooklyn and Queens are hitting all-time highs. Money is flowing back in, from domestic buyers leaving San Francisco and international buyers looking for USD-denominated assets.
Key Areas
Manhattan, Brooklyn, and Beyond
| Area | Avg. Price | Yield | Notes |
|---|---|---|---|
| Manhattan (Midtown) | $1,500-3,000/sqft | 3-4% | Office-to-resi conversions driving new inventory. Strong short-term rental demand. |
| Manhattan (Downtown / FiDi) | $1,200-2,000/sqft | 3-4% | Post-pandemic comeback. New condo towers, proximity to Wall Street. |
| Brooklyn Heights / DUMBO | $1,000-1,800/sqft | 3-4% | Brownstone charm meets waterfront condos. Manhattan views, Brooklyn prices. |
| Jersey City | $600-900/sqft | 4-5% | NJ tax advantages. PATH train to Manhattan in 10 minutes. Fast-growing. |
| Queens (LIC, Astoria) | $700-1,100/sqft | 4-5% | Best value near Manhattan. Young professional tenant base. |
Condo prices. Co-ops trade at 20-30% below equivalent condos. Data from 2024 StreetEasy and Miller Samuel reports.
Co-ops vs Condos
The Distinction That Matters Most
Co-ops
- |You buy shares in a corporation, not the unit itself
- |Board approval required: they can reject without reason
- |Subletting usually restricted or banned
- |Lower prices, but higher monthly maintenance fees
- |Most co-ops require 20-50% down payment
- |Difficult for foreign buyers without US income
Condos
- |You own the unit outright: real title deed
- |No board approval (right of first refusal only)
- |Rent out freely: ideal for investment
- |Higher prices, but lower monthly common charges
- |Foreign buyers welcome with 10-20% down
- |Easier to finance, sell, and transfer
Investment Case
Why New York
Liquidity
NYC is the most liquid residential property market on earth. You can sell a Manhattan condo in weeks. That matters when other real estate markets take 6-12 months to find a buyer. Liquidity means optionality.
USD Asset
Owning property in New York means holding a hard asset denominated in US dollars. For buyers from countries with volatile currencies (Turkey, Nigeria, Russia, Argentina), that's a hedge as much as an investment.
Rule of Law
Property rights in the US are constitutional. Title insurance exists for a reason, but title disputes are rare. Contracts are enforced. Foreign owners have the same legal protections as US citizens.
Rental Demand
Manhattan vacancy rates hover around 2-3%. Brooklyn is tighter. The city has a permanent base of renters: finance, tech, healthcare, entertainment. Corporate relocations alone drive thousands of lease signings per year.
Buyer Requirements
Closing Costs and What to Budget
No visa or residency required to buy property in the US. Foreigners can purchase freely. You'll need a US tax identification number (ITIN) and a real estate attorney. New York is an attorney state, meaning lawyers handle the closing, not just title companies.
Financing is available for foreign nationals, though terms are stricter. Expect 30-40% down payment requirements and higher interest rates than domestic buyers get. Many international buyers pay cash to simplify the process.
Cost Breakdown
| Item | Rate |
|---|---|
| Mansion Tax | 1% above $1M, tiered up to 3.9% above $25M |
| Transfer Tax (NYC) | 1% under $500K, 1.425% above |
| Transfer Tax (NYS) | 0.4%, +0.65% above $3M |
| Title Insurance | ~0.5% of purchase price |
| Attorney Fees | $3,000-$5,000 |
| Total Closing Costs | 2-5% of purchase price |
Closing costs in NYC are among the highest in the US. Budget accordingly.
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