【ARCFE Blog】 PICK NEW YORK FOR YOUR EB-5 INVESTMENT
01/20/2022 by ARCFE U.S.
Well-known for being one of the most expensive cities in the world, the NYC real estate market has long become a very profitable and popular investment option. Despite the horrendous effects that the COVID-19 pandemic has left on the world’s economy, NYC was able to maintain its position in the world’s real estate market and sustain a stable growth. Even during the 2020 recession, the housing price in New York continued to trend upward. This is shown in the graph below prepared by the FRED Economic Research institution.
New York House Price
(i) Click here to see larger graph.
(ii) The grey areas shown on the graph above indicates the recessions experienced by the U.S. economy throughout the years.
According to The New York Times report, apartment sales in NYC in Q3 of 2021 surpassed a 32-year record. The average selling price in Manhattan for the three months of August, September and October was $1,115,000, up 1.4% YOY and 8.8% higher than the same period two years ago. Just last month alone, about 3,160 apartments/houses were sold with an average price of $850,000. Property prices in NYC in Q1 of 2010 were around $383,699 and have nearly doubled by the end of 2018 with an average price of $658,000.
If you are paying close attention to the U.S. real estates news, you might have heard that many Americans are moving out of the cities, such as San Francisco, into suburban areas. While this also true for NYC in the early pandemic months, ever since the government began to roll out the COVID-19 vaccination program, many people have quickly returned to the Big Apple. Between July and September of 2021, NYC had seen more people moving in compared to the number prior to the pandemic. Not only that the rents in NYC have quickly recovered from the pandemic, but it has also surpassed the average pre-COVID due to the fact that there are more demand than supply as the city welcomes more new residents moving in.
As of now, New York is among the states that have the highest rate of vaccinations for COVID-19, with 82.3% of the population having received at least 1 dose, and 71.1% having received 2 doses. The New York state government is still pushing all efforts to encourage its residents to get vaccinated and get the booster. They are also continuing to closely monitor the infection rate to take appropriate measures in order to stay open. All of these efforts have worked in New York’s favor as it welcomes the New Normal, and as a result stimulated job opportunities and encouraged more people to move in.
Based on its long history, it can be clearly seen that investing in the New York real estate market is not only very profitable but also quite safe. The market itself is relatively stable and has always managed to bounce back in resurgence. The market is currently as alive as ever. Real estate experts believe that the vitality of the New York real estate market is strong and it will continue to flourish in the future.
EB-5 investors can feel safe knowing that their EB-5 investment is secured. Contact ARCFE today to learn more about making your EB-5 investment in the unique NYC real estate projects that we offer.