03 January 2008

How do people afford Manhattan?

Apartment Prices in Manhattan Defy National Real Estate Slide.

The average price for an apartment reached $1.4 million in the last quarter of 2007.... The reports noted, however, that average prices were being pushed to record levels because of the increasing number of apartments selling at the top end of the market, above $10 million... Still, real estate brokers and economists point out that the overall market has performed just as well as the luxury market. In fact, half of the sales in Manhattan involved apartments that sold for less than $828,0000 [sic], according to data tracked by Halstead Property and Brown Harris Stevens.

Assuming that that "$828,0000" is actually $828,000, this makes sense; the distribution of housing prices is skewed, just like the distribution of incomes. It's rare, though, to see an article that mentions both the mean and the median of a distribution.


Paul Soldera said...

It would have been even better to show the shape of the distribution around the median - my bet is it falls off sharply under $828,000. Half may sell for less than that, but I'd guess only 10% or so sell for under $700k.

Where did good ol' quartiles go?

Anonymous said...

You need to see the median and mean wealth and salaries of people living in Manhattan, and then you would understand. I know people making $1 Million in salary and three to four more in bonus.

I like Brooklyn; less foreigners - people not born in NYC. Also, it still has neighborhoods. Manhattan's neighborhoods are 95% vanished. They still have names but they are all essentially the same place.

My fear is Brooklyn will become the same.

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