The city is still alive and kicking, but there are signs of a slowdown. There are a lot more vacancies in both commercial and residential. And the job market is very slow and declining which isn't going to help. There are a few sub 2K one bedrooms in doorman luxury buildings downtown, but not many. Here's one: http://www.nybits.com/apartmentlistings/3ccbe827e1b046e7aa87006a017eb19b.html Some people might say Gateway isn't luxury, but it's close enough! http://robparis.blogspot.com/
thanks! the other 1 bedrooms in that building start at 2600--- but yeah, i see the low priced ones may actually exist. surf
Whats funny is that when I was looking for places to live in 95" that was one of them and it was about the same price ...
It's the new breed of landlords, the hot shot developers, hence the new cheaply built "luxury" buildings with "market" prices. Bloomberg's policies favored these guys, because you know, buying & selling appreciating real estate is considered economic growth & progress in this country. If that is what you like to see, then you should enjoy the "progress" NYC will make in the next few years. Prices can't fall enough, those wonderful new luxury buildings have high maintenance costs & are highly overleveraged. They are unsustainable. The owners of the rental buildings won't carry the building at a loss, especially when leveraged (which 99%+ of them are). The real rent drops are from condo owners who are deluding themselves that it makes sense to carry their "investment" while they struggle to make ends meet. It's the same thing that is happening in Florida, condo & rental buildings standing empty. It's not as simple as a stock price dropping due to an oversupply of selling. It's time to pay the piper and it's not going to be pretty.
When those signs turn to "FOR RENT" or "FOR SALE" do you think it's going to be more or less interesting? By the way, in case the middle aged B&T and euro wanna bees don't tip you off, cirpriani's is essentially a tourist trap. But maybe you have unique taste, I guess some people do like crappy pasta for $60 a plate.
If the buildings are as unsustainable as you say, and the owners won't carry them as a loss, the owners will either try to unload them or go bankrupt. Either way, the building would go back on the market somewhere neat its actual value. Once the fixed costs drop, the rents will drop with it. Let's assume that doesn't happen and that the rental buildings stand empty. That would mean that there are the same number of people competing for fewer rentable apartments. That should cause the rents to level off and the remaining buildings will become sustainable again. Either way, the market eventually levels off at a sustainable price. I agree with you that it won't be pretty in the short term. (Well it will for me, I rent.) But soon enough the market will stabilize and land values in the city will start increasing again. http://robparis.blogspot.com/
In the late 80's and early 90's prior to the tech boom commercial real estate and apartment buildings were going into chapter 11 at a pretty good clip in New York. The workouts went smoothly and there are still experienced players in that market. The problem as I see it is back then there were deep pockets to finance the bankruptcies with Chapter 11 financing .... this time around the downturn is not confined to just the US so the dollars to finance this will be difficult to come by and hence the cycle may last longer.