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If I can find the video on what the economist said he thinks will happen in NYC if things don't change I will post that too, though I doubt I will find it.
Time has made me a believer...do I think any market is invincible? Of course not. Do I think exotic loans helped fuel the huge price gains recently...no doubt. I also understand that the exotic loans and speculators played a larger role in some markets, and less so in others. Do I believe NYC will sustain the price declines that SOME markets in Nevada, Michigan, Florida, and California are sustaining...it is possible...but unlikely. I don't doubt the highest markets, like the Hamptons, are slowing....but will the norm be $10 million dollar homes in the Hamptons now selling for $5 million? I see no evidence of this..nor do I believe exotic loans and speculation was the cause in the run up of markets like the Hamptons, which is tried and true old, real money. These markets are slowing not because people cannot get financing, but because the ultrawealthy, like us regular Joe's, are taking a pause..as there is no reason to make moves as the economy is uncertain..what is the rush?
can it be possible that the media would even put something like this out in order to squash the fears of the average nyc citizen? food for thought...
explain what you mean? The facts are, home prices are far out pacing the incomes in NYC and the surrounding areas. It is a fact that people used exotic loans to buy more home than they could afford. It is also a fact that as a result foreclosures are up around the city. I think it is like 101% up from the previous year in S.I., 38% in Bklyn, 48% in Queens, etc.
explain what you mean? The facts are, home prices are far out pacing the incomes in NYC and the surrounding areas. It is a fact that people used exotic loans to buy more home than they could afford. It is also a fact that as a result foreclosures are up around the city. I think it is like 101% up from the previous year in S.I., 38% in Bklyn, 48% in Queens, etc.
Or did I miss what you were trying to say?
i was talking about the "median rents" of the city, not the mortgage issue.
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i was talking about the "median rents" of the city, not the mortgage issue.
Ah, okay. I think the media has been misrepresenting a lot of issues tied to the whole rent and mortgage issues or under reporting. But thats just my opinion.
Reviewing the article, there is no baseline to determine how the median rents were derived. They state 3 neighborhoods (East Harlem, Bushwick and Chinatown) which I believe are very strong immigrant neighborhoods (since the article was about affordable rents in immigrant neighborhoods) and then New York City. I may have gotten this wrong, mathematically speaking, but if New York City median rent is 860 and New York City is comprised of the 5 boroughs (including these areas) then a simplistic view is that the average rent outside of the neighborhoods listed is approximately $1500, which would seem more in line with what apartments are being adverstised for. If you take 730 + 716 + 529 + 1500 (which represents all other neighborhoods in New York City) you come up with a total of 3475. Divide that by 4, you get 868.75 for an average of New York City rent as a whole. Looking at it in that way makes things a little bit different as it does not support that the average rent is low in New York City.
That is fuzzy math and incorrectly calculates median rents. Median rents simply means the numeric middle..i.e..if there are 138 apts for rent, then the median would be #69, however that is not the average rent. The average is often skewed by a few higher rents, so median rent gives a better picture of the exact middle rent...half are more...half are less. And since the median rent in NYS is about $850...that means 1/2 are LESS! If you think that the city is not affordable...then you are crazy. It may be that more immigrant areas have lower rent..but so what? That is part oif NYC, you can rent those if you choose...and therefore it is an option for anyone loking to live in NYC.
Median rents speak volumes about the rent in this city.
I already stated that mathematically I could be incorrect. I also delibretely did not utilize the term median when I was refering to my assumptions based on the calculations. I specifically said average because I realized my calculations are based on average. Personally, I have never said that you cannot locate affordable rents in the city but locating something affordable and it being in a half way desirable location and being a decent apartment is hard to find, especially with the median income of NYC households. For a more comprehensive study that actually details the median rent and median income for NYC households, this link may be useful: http://www.housingnyc.com/downloads/...ports/ia07.pdf.
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