1 comment

Janet Resino, 10 months ago

An interesting insider observation about the young people buying apartments in NYC is they get a lot of help from their families. Even though the kids have great paying jobs (or not), even if they have a ton of student loans (or not) , even if their parents have a lot of money (or not), families come thru and help their kids get an apartment most of the time. With high prices combined with most co-ops and now most mortgages requiring 20% down, family assistance is most often needed. Buying a NYC apartment may also require what is called a “Reserve” (money in the bank after purchase). Parents will designate stock portfolios and savings to their kids in order that they meet those requirements.

Even in renting an apartment in NYC, families are called upon to co-sign as well as put up additional security.

The strength of the family structure is more in play in these cases than just the money. Yes there might be a few parents with a ton of money who will just go out and buy a condo for their kid, with very little regard for the process or their kid’s life. Most of the time it really is a bonding experience where a family comes together with all of their resources - wisdom, experience, contacts, references, money and support and helps their child with this major decision and purchase.

With the change in the economic status of the parents, the housing market in NYC will ultimately also change. Lower prices, of course would bring the whole process back into motion again.

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