Property Valuation
In New York City, a residential property's capitalization rate is typically:
AHigher than suburban areas due to greater risk
BLower than national averages due to strong demand and high asset values✓ Correct
CSet by the city government each year
DThe same as the mortgage interest rate
Explanation
In high-demand, high-value markets like NYC, cap rates for residential investment properties are typically lower than national averages, reflecting the strong demand, perceived stability, and high asset prices relative to income.
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