There is the enormous size of the city. With more than 8 million people living nearby, the competition for housing is fierce. New York is a major global financial center, driving prices even higher. Many of the city's residents are wealthy professionals who are willing to pay big money for premium real estate.
Home prices continue to rise even now. According to research by NY Rent Own Sell, home prices rose by about 15% over the past year. The fact that houses are now so expensive is nothing more than the result of the problem of supply and demand. The cost of construction is also high and is increasing every year, according to the study by the Committee on the Citizens' Budget.
Interest rates, which are rising to combat inflation, threaten to make development even more expensive. Some housing advocates say government officials should also prioritize rent controls and public housing to make living here more affordable. Been, former deputy mayor for housing and economic development under the presidency of former Mayor Bill de Blasio, who supports facilitating housing construction. Because of rising housing costs, investors have to save money to buy a property like any other buyer.
California's second place in the most expensive states to buy a home isn't a surprising fact, as it's famous for its enormous housing costs.