Real Estate can generally be classified by two components, its geographical location and usage. When looking at a certain geographical area, as commercial begins to rise, it is likely that within relative time, residential will rise at a similar rate as well.
For example, residential usage in Manhattan is particularly highly sought after. There is very little supply to fill the high demand for numerous reasons.
Over the past few years, development has nearly ceased due to the market meltdown and lack of funding from banks. Another reason being is people from all over the USA migrate to New York for career enhancement and job opportunities, putting pressure on residential supply. People from outside of the United States see New York as a safe heaven and purchase upscale condominiums for investment purposes and as a second home in the city. These factors contribute to the residential vacancy rate near 0% in New York.
For more information on Boymelgreen Developers, be sure to follow us on Twitter @S_Boymelgreen.
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