New York population growth outpaces property supply

To the question of why Manhattan property prices and rents keep increasing, I always mention it's because of two simply concepts (i) demand (ii) inflation.  On demand, population growth has always been strong in a megacity like New York.

According to The Real Deal, a March report shows that New York City is experiencing a population growth which is outpacing supply of property.

Since 2010, New York City gained 215,782 new residents reaching a total of 8,405,837 residents in 2013.

This means, without a surge in residential property construction, prices and rents will continue to increase.

For the period between 2010 and 2013 when New York City gained 215,000 residents, only 21,688 new units were built.  In Manhattan, population increased by 38,040 while new housing inventory increased by only 5,098.

Wei Min Tan is a Manhattan, New York buy-side condominium specialist focusing on investors and foreign buyers.  He can be reached at tan@castle-avenue.com