The real estate market in New York City, including Manhattan and the five boroughs, has moved differently compared to other major cities. Although the price levels are already high, the rate of increase may seem moderate, but the actual burden of housing costs remains significant.

According to Zillow data, the average home value in New York City is currently around $900,000. Compared to early 2021, this represents an increase of approximately 22 to 25 percent over the past five years. The initial population exodus from the city during the pandemic temporarily suppressed prices, resulting in a lower increase compared to other areas.

Considering that the national median home prices rose by about 35 to 45 percent during the same period, New York City has shown a rate of increase below the national average. This is interpreted as a clear impact of the early pandemic trend of urban flight from 2020 to 2021.

From the second half of 2020 to the first half of 2021, the expansion of remote work led to adjustments in both rental and sales prices in Manhattan. Starting in the second half of 2021, prices rebounded as office returns and tourism recovery coincided, but the period of rising interest rates from 2022 to 2023 saw a slowdown in the upward trend. After 2024, a gradual recovery is expected amid low inventory levels.

Factors supporting recent prices include New York City's unique limited new supply, rental regulations causing inventory lock-up, and the recovery of employment in the finance and tech sectors. However, high property taxes and management fees continue to suppress buyer sentiment.

It is difficult to predict future trends. However, given the structurally limited new supply in the market, it seems likely that there will be gradual fluctuations rather than sharp declines.

For Korean households considering purchasing in New York City, it is advisable to keep in mind the significant regional disparities. The gap in price increases between Manhattan and the outer boroughs is considerable, so it would be reasonable to approach the decision while considering commuting conditions and living radius.

If the intent is already clear for actual residence, monitoring interest rate trends and adjusting the timing may be sufficient. On the other hand, if the purpose is investment, it is recommended to carefully evaluate rental yields and management fees before making a decision.