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A survey of multifamily property owners shows a dire situation for the owners of small buildings in New York City.
The Community Housing Improvement Program (CHIP) found that nearly two-thirds of all commercial properties located in rent-stabilized buildings have failed to pay any rent so far in May. Additionally, residential rental income is roughly 20 percent behind expected returns so far this month, which trails behind national averages.
The data, collected by surveying the owners and operators of more than 100,000 units of rent-stabilized housing, also revealed that nearly a quarter of residential tenants are not paying any rent. It is clear that New York City remains the epicenter of the economic disaster caused by the COVID-19 pandemic.
“Unless the federal government steps in to help renters and owners in a big way, we are going to see a housing disaster the likes of which we have never seen,” said Jay Martin, Executive Director of CHIP.
NYC was in trouble before this, but COVID is going to take it to a whole new magnitude. The closing of offices was not going to happen, and the mass exodus of reasonably wealthy people cashing in their chips was not going to happen either.
Commercial retail real estate was going to collapse eventually, now it's going to be completely decimated. Those missing office workers are not eating at restaurants for lunch anymore, they are not buying a drink at the bar after work, and they're not taking in a Yankees game on the way home.
Toursim is going to go from 65 million last year to probably less than 10 million this year, instead of $44 billion spent, figure over $35 BILLION in cash flow will evaporate, that money is GONE
Then you have all these compounding effects - mass release of prisoners, no bail for criminality, and now ECONOMIC DESPERATION and many will turn to crime with little consequence which will feed a vicious vicious cycle of the middle class fleeing NYC
NYC was in trouble before this, but COVID is going to take it to a whole new magnitude. The closing of offices was not going to happen, and the mass exodus of reasonably wealthy people cashing in their chips was not going to happen either.
Commercial retail real estate was going to collapse eventually, now it's going to be completely decimated. Those missing office workers are not eating at restaurants for lunch anymore, they are not buying a drink at the bar after work, and they're not taking in a Yankees game on the way home.
Toursim is going to go from 65 million last year to probably less than 10 million this year, instead of $44 billion spent, figure over $35 BILLION in cash flow will evaporate, that money is GONE
Then you have all these compounding effects - mass release of prisoners, no bail for criminality, and now ECONOMIC DESPERATION and many will turn to crime with little consequence which will feed a vicious vicious cycle of the middle class fleeing NYC
And you know this and yet you aren’t making billions personally on Wall Street ....financial firms can get rid of their analysts and economists with your predicting ability
And you know this and yet you aren’t making billions personally on Wall Street ....financial firms can get rid of their analysts and economists with your predicting ability
I feel bad for small mom and pop landlords who are renting out in their buildings or houses. But I don't feel bad for conglomerates which have warehoused entire blocks or neighborhoods. Let them suffer.
What I'm concerned about is how Chinese and Russian investors will snatch up any housing that is up for the taking after this, though. New York needs to ban foreign purchases, now and forever.
NYC was in trouble before this, but COVID is going to take it to a whole new magnitude. The closing of offices was not going to happen, and the mass exodus of reasonably wealthy people cashing in their chips was not going to happen either.
Commercial retail real estate was going to collapse eventually, now it's going to be completely decimated. Those missing office workers are not eating at restaurants for lunch anymore, they are not buying a drink at the bar after work, and they're not taking in a Yankees game on the way home.
Toursim is going to go from 65 million last year to probably less than 10 million this year, instead of $44 billion spent, figure over $35 BILLION in cash flow will evaporate, that money is GONE
Then you have all these compounding effects - mass release of prisoners, no bail for criminality, and now ECONOMIC DESPERATION and many will turn to crime with little consequence which will feed a vicious vicious cycle of the middle class fleeing NYC
Like it or hate it the following is only my opinion:
Excerpt: Commercial retail real estate was going to collapse eventually, now it's going to be completely decimated.
Response: Since coming on board I have said over and over again. Real Estate greed cuts like a knife. Covid 19 simply entered the wound.
Like it or hate it the following is only my opinion:
Mathjak is a pretty smart cookie. It is really not strange. All depends from what angle you are looking at things. ( math pun )
In any math equation you can manipulate the outcome by changing an observation for a variable over time. Politicians do this all the time. Playing with money they don't have. Money they assume will come from you down the road in increased taxes or some cockamamie idea that in investing in an ostrich farm or creating diet pizza is just going to pay off big. The only thing that can never be manipulated is truth.
New York is in a heap of a mess. Investors will be first to fall. Wall Street will be only one of many Hans Brinker's
attempting to save the city and their investments. This is the story of the little Dutch Boy that saved Harleem
( in Holland Folks ) from flooding by putting his finger in the dyke. Great fairy tale stuff. Great for children.
A woo hoo story as long as the truth doesn't step in.
There is no way on God's Green Planet that plugging a finger into a dyke...... that is about to break....... is going to stop it!
Dykes weaken until they break and wash away the town and everything in it ..................
Big money only needs ( change the variable ) time................................enough time to cash in their chips before leaving Dodge.
Welcome to the 70's..................
A survey of multifamily property owners shows a dire situation for the owners of small buildings in New York City.
The Community Housing Improvement Program (CHIP) found that nearly two-thirds of all commercial properties located in rent-stabilized buildings have failed to pay any rent so far in May. Additionally, residential rental income is roughly 20 percent behind expected returns so far this month, which trails behind national averages.
The data, collected by surveying the owners and operators of more than 100,000 units of rent-stabilized housing, also revealed that nearly a quarter of residential tenants are not paying any rent. It is clear that New York City remains the epicenter of the economic disaster caused by the COVID-19 pandemic.
“Unless the federal government steps in to help renters and owners in a big way, we are going to see a housing disaster the likes of which we have never seen,” said Jay Martin, Executive Director of CHIP.
Retail in RS or other buildings have largely been shut down for almost two months now, so can see why some haven't paid their rent in or two months.
OTOH RS tenants who aren't paying can be broken down into two camps; those that cannot, and those will will not.
Not every RS tenant has suffered some or any long term economic reversals due to recent events. Those on SS or other fixed incomes still are getting their checks, and in fact got a bit extra thanks to that stimulus payment. Then you have those who are still working and yes, also got their taste of stimulus payments.
That leaves persons who were laid off; but UI and the extra $600 when finally paid out should give most or all of them at least enough per month to cover rent. So they are taken care of...
That just leaves those who were busted before this hot mess began. It is Déjà vu all over again those those people, but it has nothing to do with covid-19, but rather a chronic ongoing situation; they just don't earn enough to live in current apartment.
Finally you have those who have decided not to pay rent out of principle; making a stand against *The Man*. Fair enough, but they will be standing in housing court if they don't pay up.
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