Average Manhattan Apartment Now Worth $1.2 Million

According to data from New York City real estate firms, housing demand increased in the first quarter of 2007. Sales were up almost 12% over the previous quarter and the average price for a Manhattan apartment is now more than $1.2 million.

No wonder the middle class is vanishing in New York City. A new study released by the Drum Major Institute for Public Policy this week found that a family of four needs at least $75,000 a year to be considered middle class in New York City. The report also found that housing is the number one challenge.

The fact that Manhattan real estate is ridiculously expensive is not news to anybody. However, seeing those numbers -- $1.2 million for the AVERAGE apartment and $75,000 to qualify for middle class status -- gives a bit of a jolt. We definitely pay a price for living in the most exciting city in the world.