Broaden my horizons? I live in Manhattan. This is an island! A really small one...so one of the world's most attractive cities is a small island...of course there will always be some level of demand. I don't see people piling into Hell's Kitchen or many parts of the LES. Of course you're going to get wealthy people snatching up homes on the UES a few blocks from the park. I don't blame them. NY is an anomaly...we can at least agree that using NY as an example in regards to the nation's housing problem is like using Angelina Jolie to discuss how ugly humans are.
Manhattan is the biggest waste of money in the country. $1 million for a 1 bedroom is insane. These same apartments were going for a third of that a few years ago. Are people that stupid to spend that much for a 1 bedroom? What happens when prices are $5 million for a 1 bedroom? Will people still spend that much? What's so great about living with bums everywhere, crime, drugs, etc. My ex girlfriend's cousin got knifed in the subway a few years ago in Manhattan, although he did live. Personally, I couldn't stand that constant noise and chaos. Selfish and rude people everywhere, crowded, sirens at all hours, and no serenity. You could keep it. I'd rather spend the money to live near the beach, like in HI or CA, and be in a nice setting. You can go to most places in the country and spend $1 million and even half that and get 6 bedrooms,5 bathrooms, pool, and 2 acres in a quiet and safe neighborhood that's great for raising children in.
I liken NYC realestate to TIE's stock last year: was a momentum play that went up on a tear then came down just as fast when the market began correcting. All markets operate in the same way, though their periods differ. The RE market moves in waves, and the NYC RE market is no exception.
Easy easy easy there...NY isn't what it used to be. It's pretty clean and people are fairly nice most of the year here. It's surely not what it used to be. I agree that prices are too high. You have one of the cultural apexes of the world...when I first moved here the first people I met were an Indian, a Brit, some Italians, a Puerto Rican, and a Jew from Long Island....you can't get that in Colorado or Kentucky...and I grew up near Los Angeles and their diversity is largely in where in Latin America the immigrants are from...not so in NY. This is a wonderful city in many ways...and bad in others. I'm going to move to Europe for a number of reasons next year...price being the main one. Other than price though, NY has a lot to offer that most places outside of Europe couldn't offer in their wildest dreams.