When it Comes to Residential Real Estate Value, NYC is Number One
A new report from LendingTree has found that more than one-third of America's 28.4 trillion in residential real estate value can be found in just 10 major U.S. cities. The report raked 50 U.S. cities based on residential value compared to the gross domestic product (GDP) of comparable countries throughout the world. Not surprisingly, New York City residential real estate was ranked number one, with a total value of $2.55 trillion, a figure that is roughly the same as the GDP of France. Los Angeles came in second, with a total residential real estate value of $2.18 trillion.
These findings do not necessarily mean that NYC ranked number one in home value, however. In fact, Los Angeles's median housing value was determined to be $622,000 compared to NYC's $454,000, while San Jose beat them both with a whopping median home value of more than $1 million. According to The Real Deal, reports have shown that home values in San Jose have been increasing at a rate of $800 a day as of this past Spring, which is the fasted home appreciation rate in the country.
San Francisco ranked third in total residential real estate value with $1.25 trillion, and Chicago came in fourth with $813 billion. While NYC's real estate has tremendous value, that doesn't mean homes are selling fast. Inventory has been on the rise in the Big Apple and homes have been lingering on the market for months, making now an excellent time for potential NYC homebuyers who want to negotiate to get a great price.
The opposite is true of San Francisco, where there are not enough homes to meet the city's staggering popularity. The San Francisco Business Times spoke to Tendayi Kapfidze, LendingTree’s chief economist, who explained construction has not kept up with demand in San Francisco for the past 20 years and when people do purchase a home, they tend to stay there.
“There is a general shortage of turnover,” Kapfidze said. “There is both a shortage of new homes and a shortage of existing homes entering the market.”
When it comes to NYC residential real estate, Tribeca was found to be the most expensive neighborhood in the city, according to a July report from Property Shark. During the second quarter of 2018, the median home sale price in Tribeca was $3,812,500.