Manhattan Tops San Francisco In the List of Most Expensive Real Estates According to Study

When we talk about the most expensive real estate in the United States, the first thing that comes to our mind is San Francisco. Surprisingly, another city surpassed SF according to a new study.

The Study

According to the recently published report from the Neighborhood X, they studied the average cost of a home on a per-square-basis in most major cities not around the world and found that Manhattan’s real estate came out as nearly twice as expensive than the real estate found in San Francisco. Using the data obtained from Miller Samuel Inc, the real estate and data analytics firm found the average price per square foot for apartments and homes in Manhattan cost around $1,773 as of August 7, whereas San Francisco’s average per square foot price for homes is only at $902.

According to the research firm Neighborhood X, Manhattan’s expensive home prices is due to the high cost of living in New York City.

The research team adds that the massive price gap between the two major cities is caused by New York City’s expensive cost of living. They found that the real estate in other neighboring cities is significantly cheaper compared to the country’s financial capital. Despite the said real-estate price gap, San Francisco is still at the top of the list when it comes being to the most expensive place to live in the US.

According to the researchers, its housing costs have skyrocketed for the past decade, and their mortgage rates and rental fees are notoriously high. Another study conducted by the popular site Zillow, also reveals that San Francisco’s median home price is at $1.366 million, compared to Manhattan’s $1.315 million. While the median home price in New York City, which caters to a larger population compared to the entire Bay Area, only amounts to $672,000.

Manhattan’s Soaring Prices

The most expensive property in Manhattan amounts up to $10,054 per square foot according to the report

Manhattan may have the most expensive real estate per square foot, but its prices vary depending on your location. For example, most real-estate prices decreased significantly in northern parts of Manhattan compared to the center. Meanwhile, the Inwood neighborhood of Manhattan only cost $447 per square foot to avail a house property compared to central Manhattan.

Alternative Cities

Neighborhood X only assessed the data based on the market-rate properties on sale. It does not include the income, short-sales, age-restricted housing and foreclosures yet.

Want to avail a real-estate property outside of Manhattan or where it’s affordable? The report also shows other alternative cities you can move in with affordable real-estate rates. In Portland, Oregon, for example, you can avail a home property for only $98 per square foot. Do you want to avail a more luxurious real-estate? That is possible in Oregon without hurting your pocket.

The most expensive home in Oregon only cost around $1,053 per square foot. That’s less than $1,000 per square foot compared to the real-estates in Manhattan!  Austin, Texas also offers a lower real-estate rate for only $86/sq.ft up to $1,466sq.ft. While Philadelphia offers the cheapest rate for only $40/sq.ft up to $1,643/sq.ft.

Most Affordable Neighborhood in NYC

Want to live in New York but don’t want to pay a hefty amount for real-estate like in Manhattan? Move into these neighboring cities.

Battery Park City

The median real-estate sale price in this city only amounts to $771,000, about 19% lower than the Manhattan median. You can enjoy its acres of landscaped waterfront, good schools, and a comprehensive subway access. It also has high-end establishments such as Hermes, Danny’s Meyer Shake Shack, and Equinox to compete from New York City.

Lower East Side

Notoriously known for its grittiness, this neighborhood is the home for trendy hotels, fashion boutiques, art meccas, and speakeasy bars that give a vibrant day and nightlife to the city. Although its subway access is pretty limited since the city is closer to the river.

Gramercy Park

This park is known for its ideal location which gives you a convenience to everything, the access to the subway system, number of bars, convenience stores, shops, and restaurants, and an easy access to the Flatiron District. What’s more? the real-estate prices in Gramercy Park are 13% lower than in Manhattan.