In New York City the housing is ridiculously overpriced. Location is everything, and some people are willing to pay big money to live in the heart of the Big Apple. And then, there are people like Felice Cohen, who find affordable ways to live in a prestige location. Felice lives small in the Big City, and she is happy. Her microstudio is located on Manhattan’s Upper West Side, it’s only 90 square feet and costs just over $700 a month. Would you give up space for location? Please, SHARE your thoughts.
I love NYC, it does have a lot to offer. I think, if I was young and single with no kids, I could live like that for a little bit. As I understand, Felice travels a lot and spends a lot of time in the city. If I needed a corner just to sleep in, her apartment would be perfect.
Since 1980, NYC has gained a million people and has not kept pace with housing growth. There are 400,000 millionaires, 3,000 Ultra-High Net Worth Individuals, and 70 billionaires reside in Manhattan. There are possibly 65,000 units of housing that are second homes and vacation homes for other rich people in Manhattan. Simple New Yorkers have to compete with the rich and powerful for the limited units of housing in this city.
There are lots of cheap apartments in New York, but the majority of them are subject to Rent Regulation. These spaces are not available because tenants with great rent controlled deals hold on to their apartments until they die. This is also the reason why so many buildings cannot be vacated to be torn down. In 2015, 88,000 people applied for 55 affordable apartments in a single building.
Increasing the housing supply is difficult. Almost a third of Manhattan is landmarked. The cost of construction in New York City is the most expensive in the US. Total cost for high rise office towers can exceed $400 per square foot, compared to $180 psf in Chicago.