New York City has experienced a high rate of economic growth over the past few years. During this time, millions of people have moved to the city in search of jobs. In addition, the real estate market is booming.
The leaders of New York City decided to lower taxes several years ago. Although people who live in the city still pay high tax rates, the taxes are much lower than in previous years. This has encouraged a lot of people to start businesses. There are numerous real estate investors looking for deals within the city. Over the next few years, some people feel like the economic growth could slow down due to decaying infrastructure.
The Infrastructure Problem
New York City has thousands of miles of subway tracks. These tracks are expensive to maintain and repair. In order to pay for additional tax cuts, the city decided to decrease the budget for infrastructure. There are many people who are starting to worry about the impact of these cuts. There are visible signs throughout the city that the infrastructure is starting to decline.
Numerous political leaders have proposed fast action for this problem. It will be interesting to see if the city leaders can agree on a solution for the years ahead.
Real Estate Market
The real estate market in New York City is one of the hottest markets in the country. As a result, there are many people who want to purchase property in the city. There is a major shortage of inventory available. This inventory shortage is causing housing prices to increase even more.
There are many people who want to purchase a home. However, with high housing prices, few people can afford to purchase a home. As a result, more people than ever are renting within the city.
There are several proposals for the city to build more homes for potential buyers. However, there are few people who expect these proposals to pass. Until the city can fix the looming infrastructure issues, economic growth will be in jeopardy.