The Rent is Too Damn High, So New Yorkers Are Buying Homes
Jimmy McMillan might be on to something: a real estate research firm has noticed that more New Yorkers are trying to buy apartments -- because the rent is too damn high.
As it turns out, the perfect storm of inflated rents and low interest rates has pushed would-be renters into the market, according to DNAinfo.
Many home-seekers have complained that their rents have ballooned anywhere from 10 to 20 percent, so they see purchasing as the only economic option.
One agent has even "seen clients in bidding wars for studios in Chelsea, Kips Bay and Gramercy, which was unheard of until recently."
Citing a StreetEasy report, DNA says that some 19 percent more "starter" apartments went into contract in February compared to 2011. Interest in family-size apartments, though, sank 8.2 percent.
Unfortunately, if you don't have the cash to shell out for a down payment on a condo, you might soon find yourself with even less money: Manhattan rents are expected to go up 10 percent in 2012.
Follow Victoria Bekiempis @vicbekiempis.