Seriously? Yeah, this is happening, and it's going to affect us all.
Back up for a second. Let's assume you haven't been paying attention to the following: New York City's real estate market has been booming, gentrification's raising rents, and some seriously expensive luxury condos are popping up left and right (possibly bought by secret buyers) that no one can actually afford.
So, no; it shouldn't be that surprising that the NYC total property value has surpassed the trillion dollar mark.
NYC's Department of Finance released a report on Friday stating that the tentative property assessment for the fiscal year of 2017 has crossed $1 trillion, rising $102.5 billion, or 10.6% from the fiscal year 2016 assessment.
If that number is hard for you to imagine, let's put it this way: According to CNBC, NYC's property is worth almost as much as Mexico's nominal gross domestic product in 2014.
Still hard to conceptualize? Our property value has surpassed the economies of South Africa, Saudi Arabia, and Indonesia. Scary, right?
NYC's finance commissioner, Jacques Jiha, stated that "[this] year's tax roll is simply a reflection of New York City's growing real estate market. The roll also reflects significant construction activity, particularly in rental apartments, which accounts for 36 percent of the construction activity in the city."
Still, these numbers are pretty frightening when you take into account how they affect the people living in New York. Homeowners have been hit with higher property taxes due to the increased property values of their homes simply due to location.
Renters can't escape the financial blow either, with the average rent of an apartment surpassing $3,200 for a one-bedroom apartment, according to Rent Jungle. That's an average rent of $38,400 a year, making it costly to live alone in New York City.
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Unsurprisingly, Brooklyn's property values seem to have had the biggest increase, particularly due to the construction of rental apartments.
For New Yorkers, this news is not only frightening, but incredibly problematic. The real estate boom surely cannot continue ceaselessly, but it doesn't show any signs of stopping. If this rate continues, there won't be any apartments left for the average, blue collar New Yorker.
Check out This Luxury High-Rise, Complete with a "Poor Door," Just Opened on the UWS.[via CNBC] [Feature Image Courtesy Instagram]