Over the past decade, New York City has exploded. Whether it is women pursuing their dreams of living a life similar to Sex in the City or people trying to make millions in the investment banking/hedge fund game, the city has swelled with new people, especially young people. The prices of living in Manhattan have exploded. Making $100k a year isn’t a lavish life if you live in Manhattan; it’s almost middle class!

New York City has been decimated by the credit crunch. All of those investment banking jobs are now gone. Hedge funds/mutual funds and other stock market related jobs have been crushed. A lot of the major marketing companies have been decimated. What was once a city of perpetual growth will likely be the last one to recover.

On the bright side, the prices of living or visiting New York City have started to reflect it. Hotel rates have plummeted. What used to be $400-$500 a night to stay in a hotel is now $200 or even less. This is also helped by the strengthened dollar, as there are fewer foreigners visiting New York.

Of course, if you are locked into your lease, none of this really helps you. But if you are moving to or renegotiating your lease, it’s a buyers market now. Property values have plummeted and your new lease should reflect that.