It is no secret that luxury
real estate in Manhattan has gotten astronomically expensive in the last several
years. In the past, the high cost was attributed to a flood of money from foreign
investors, but recently the story has changed. Findings suggest that the role
and importance placed on foreign investors has been overstated. The actual
force behind real estate sales can be attributed to local domestic deals and
purchases, a majority of which can be traced to New York City residents.
Recent
information regarding the income of New York City residents shows the impact of
homemade millionaires as their incomes and numbers have grown. There has been
an increasing number of New Yorkers found to earn about one million dollars or
more per year. From
2013 records, about 21,764 taxpayers in this city earned one million dollars
and above, giving about a 47 percent increase from the 14,795 recorded in 2009.
This group of millionaires has seen a 48.6 percent bump in their incomes to 96
billion dollars over the past 5 years. Tax return data also shows that close to
45 percent of New York millionaires earn 2 million dollars or more per year,
and that about 1,315 of them earn 10 million dollars or more in income.
There
are a number of the factors leading to New Yorkers’ income increase, but chief
among them are the 2013 changes in the federal tax law, which led to a dramatic
increase in the number of rich New Yorkers. One obvious indicator of this is
the significant increase in the city’s overall income tax collection, which has
seen an 11 percent increase by the end of its 2015 (June) fiscal year.
The
figures show that we New Yorkers are the major factor causing the increase in
the cost of high-end real estate rather than those foreigner investors. The
higher prices are now directly linked to New Yorkers themselves, many of whom
are making millions of dollars per year. Foreign investors should get ready
because the pace is now being set by New Yorkers.
Please visit us at www.RubenPerezNYC.com
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