According to Real Capital Analytic reports, the average
property prices across the country are continuously going up. However, rent costs for residential apartments and offices either stand still or even going down.
The average flat price in a multistoried building constituted $83’880 while it appeared to raise up to $142’170 in June 2004.
One-square-foot price for office
properties in downtown areas fluctuated around $200 in 2001 and elevated to $217 this year.
Although the surveys have shown growth of residential property prices in the USA, both office and residential
real estate rent prices were reported to have either idle or even declining tendency. For instance, the monthly rent for residential properties was estimated on average at $864 per flat. This year’s prices are nearly the same and are balancing around $865. The downtown area’s average rental price dropped from $28.87 per sq. foot in 2001 to $24.63 in 2004.
The process of rental price recession proves the general descend in business activity and, as the result, overstocking of market with commercial and office real estate due to lowering demand. Of course, the destructive roll was and still is played by a multiple variety of factors. Among the vivid ones, for sure, several acts of terror that America has been recently going through. Another one is in failure of international trade due to demolishing of the World Trade Center in New York City. Some of the European experts believe prices decline because of the unstable position on the US dollar and vague progress that the USA was making in the meantime.