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So long as the wealthy global elite continue to feast on NYC real estate, gentrification will continue. The billioniares are buying up property and setting records prices....making the regular multimillionaires squeeze and sacrifice to get that dream NYC apt...which makes everyone else have to make huge sacrifices to live in this city, and ultimately the "regular wealthy" and upper middle class are now forced to live in transitioning areas = gentrification.
When the international buying spree ends....you will see gentrification slow. However, as it stands now Europe is having the ultimate buying frenzy as the Euro is worth 33% more than the dollar..so that $1 million dollar condo costs only $670K Euros...and that $10 million dollar townhouse costs only $6.7 million Euros. WHAT A STEAL and won't last forever..so they are buying up a storm. Same applies for the Russian tycoons, growing wealthy Chinese elite, and Latin Americans.
We are all getting screwed because the city is marketed aggressively to the wealthy at the expense of the residents. These people don't provide any tax base either as they just use it for a few weeks at a time...so the only ones benefiting are the real estate interests. I say enough already!
Completely agree.
I know some of the global elite real estate parasites personally. I have no sympathy whatsoever.
FYI - many are giving up citizenship and moving because they "refuse" to pay taxes under the "currently unethical government trends" - to paraphrase. At the same time that they continue to aggressively purchase real estate here, "investments." There was a story about this, Wall Street Journal I think, last year ?
And Europe's economy is in the toilet and they are still on a massive NYC real estate buying spree..particularly for ultra-high end condos and brownstones = $$$$$$. Guess what happens when their economy bounces back? The Chinese are getting wealthier by the day (literally) and are just now making their way into NYC real estate...Russians are just buying things because they have nothing else to do with their money...and Latin Americans have always sought cash refuge in NYC real estate.
With global money continuing to focus squarely on NYC, and the "regular" wealthy interests trying to compete, it is making it very difficult for the other 95% of the residents to actually live here. In Harlem a brownstone just closed a few weeks ago for $4 million....it's that serious at this point...the "regular" wealthy people have to stretch in Harlem to afford what they want...think about that.
Just about everything that was for sale in my nabe last year (Southern Bronx)...which was lingering on the market, has been snapped up (brownstone buildings)..every one sold all for within a few thousand of the asking price. They are being renovated and likely flipped for a significantly higher price...
And Europe's economy is in the toilet and they are still on a massive NYC real estate buying spree..particularly for ultra-high end condos and brownstones = $$$$$$. Guess what happens when their economy bounces back? The Chinese are getting wealthier by the day (literally) and are just now making their way into NYC real estate...Russians are just buying things because they have nothing else to do with their money...and Latin Americans have always sought cash refuge in NYC real estate.
Just about everything that was for sale in my nabe last year (Southern Bronx)...which was lingering on the market, has been snapped up (brownstone buildings)..every one sold all for within a few thousand of the asking price. They are being renovated and likely flipped for a significantly higher price...
A lot of high end real estate here is still bought buy Americans, and there in lies the true problem.
The bond yields are up big time, as bond prices have fallen. What is the significance of that? It makes borrowing costs much more expensive. So what happens? Real estate prices crash because you can't get financing, and as it becomes more much expensive to borrow, businesses cut back on borrowing. The economy slows.
For those of you say, all, it doesn't matter, foreigners are magically wealthy, what happened in the late 80s? Wealthy Japanese bought a lot US assets at record prices, and ended up losing serious money as real estate markets crashed. It could be people are selling to new money foreigners who are stupidly naive. A sucker is born every day. You have crazy buying in any market just before the crash, and sometimes this is sign of a very bad crash coming.
A lot of high end real estate here is still bought buy Americans, and there in lies the true problem.
The bond yields are up big time, as bond prices have fallen. What is the significance of that? It makes borrowing costs much more expensive. So what happens? Real estate prices crash because you can't get financing, and as it becomes more much expensive to borrow, businesses cut back on borrowing. The economy slows.
For those of you say, all, it doesn't matter, foreigners are magically wealthy, what happened in the late 80s? Wealthy Japanese bought a lot US assets at record prices, and ended up losing serious money as real estate markets crashed. It could be people are selling to new money foreigners who are stupidly naive. A sucker is born every day. You have crazy buying in any market just before the crash, and sometimes this is sign of a very bad crash coming.
First off, the very wealthy don't need financing. They pay cash and do so frequently. And those from overseas often can't get financing anyways. None of these people are likely to be affected by any susbsequent real estate crash. Prices on Park Ave. or Central Park West might dip, but these are owners who can afford to wait out any serious decline, just as many of them did in 2007-2010. Prices on the choicest residences will tend to stay high and that will only make non-prime areas more attractive, relatively speaking, and support prices there.
Of course we can hav another real estate bust here. And in due time, we will. But its not going to happen in the next few years.
First off, the very wealthy don't need financing. They pay cash and do so frequently. And those from overseas often can't get financing anyways. None of these people are likely to be affected by any susbsequent real estate crash. Prices on Park Ave. or Central Park West might dip, but these are owners who can afford to wait out any serious decline, just as many of them did in 2007-2010. Prices on the choicest residences will tend to stay high and that will only make non-prime areas more attractive, relatively speaking, and support prices there.
Of course we can hav another real estate bust here. And in due time, we will. But its not going to happen in the next few years.
The very wealthy, even in NYC are a small part of the market. Most real estate in NYC that is sold has financing of some sort. If that's effected, the value of all properties falls. Or if they are big lay offs on Wall Street, that has huge effects on real estate here. Most real estate in NYC is occupied by people who work here. It doesn't capture the imagination of people like you, who like to fantasize nobody in NYC works and its just full of magically rich people, but whatever.
Wealthy foreigners bought real estate in California, Nevada, and Florida too pre 2008. That didn't stop those markets from crashing big time.
And Europe's economy is in the toilet and they are still on a massive NYC real estate buying spree..particularly for ultra-high end condos and brownstones = $$$$$$. Guess what happens when their economy bounces back? The Chinese are getting wealthier by the day (literally) and are just now making their way into NYC real estate...Russians are just buying things because they have nothing else to do with their money...and Latin Americans have always sought cash refuge in NYC real estate.
With global money continuing to focus squarely on NYC, and the "regular" wealthy interests trying to compete, it is making it very difficult for the other 95% of the residents to actually live here. In Harlem a brownstone just closed a few weeks ago for $4 million....it's that serious at this point...the "regular" wealthy people have to stretch in Harlem to afford what they want...think about that.
Just about everything that was for sale in my nabe last year (Southern Bronx)...which was lingering on the market, has been snapped up (brownstone buildings)..every one sold all for within a few thousand of the asking price. They are being renovated and likely flipped for a significantly higher price...
In my neighborhood, every old home that is knocked down is replaced by a Chinese fortress, then a single family homes becomes 2 condos, and the only people that are buying in my neighborhood are the chinese. they are everywhere.
the big clue is, if you see a SS door, it is owned by chinese.
With the new mayoral hopefuls having a strong agenda in increasin NYC middle class do you think Gentrification will slow down.
I mean Nanny Bloomberg made a good dent in making NYC a "techie" city where they can work in Midtown and live in Williamsburg and drink starbucks and gluten free water.
Do you guys think with the new mayor will kind of even out and maybe reverse the damage done to the city ??
NYC history, culture and flavor come from the very immigrants that are getting priced out !
Imagine nyc filled with white and asian millionares ???? Omg. Booooororrrinnnnnggg
"Damage"? I love it.
Pretty sure immigration is at a high point right now in NYC too. More diversity in this city in the last administration than ever.
If international trends are any indication, we ain't seen nothing yet in terms of gentrification. NYC is considered the top of the game when it comes to world class cities. There is serious momentum with no end in sight at this time. Lots of people want to live here, this city is unique. As long as there's jobs for people to do so, and yes corporations are attracted to this place too, people will flock here. People are willing to even take income hits and live in smaller spaces just to call NYC home.
I am hearing that De Blasio is the most liberal/progressive of the candidates.
Is this true in your opinion?
It is my concern that he is a weak person, which we do not need.
Moreover ... increasingly, it is my sense that "stop and frisk" is the new, site-specific, opium of the people.
Anyone consider asking what ELSE might be going on ? Such as foreign investment in real estate, which came up above. Gee, wonder how that impacts blacks and latinos.
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