Tuesday, January 27, 2009

New York State of Mind

Ever since I was presented with the idea of moving into Manhattan, I've been feeling like Billy Joel and/or NaS. Living in New York has always been a goal, since beginning work. The problem was always money. Do I hold off on retirement savings and live for the Now? Or sacrifice my youth (have I already? Find out here!) and live for the Later? Living for the Now and Later would be ideal. Who could pass up a life filled with sweet juicy taffy? However, with Manhattan rent costing at least one arm and one leg, it never seemed like a possibility.

*Enter Global Economic Collapse stage left*
Global Economic Collapse - Hey guys, what's up?
The World - Oh #%$@.

Consider this analogy: Global Economic Collapse is to Tom, as The World is to Walt.

I've been doing some much research on Manhattan apartment prices, and have found a lot of information regarding the recent downturn in the NYC realstate. It seems to have finally begun to catch up to the rest of the country.

Vacancies are forcing landords to reduce rents, offer months free, and pay broker fees.

Some Goldman Sachs guy talks about how prices need to fall

Examples of some recent apartments being rented for less

Currently, it is unclear whether prices are expected to drop further as the year goes on. Typically there is higher demand going into the Summer, which may balance out the decline. I'll be following the market closely in the next few months, but it's pretty clear now that moving in soon would be the best plan.

The more I think about it, the more exciting it sounds. No longer will I have to commute an hour and a half to work every day... No longer will I have to cut city nights early to catch that last train... No longer will I have to follow up "So you want to come back to my place?" with "I live over an hour away in New Jersey"... But is all that worth the extra $700+ rent every month? Yes.

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