New York Real Estate Slowdown Less Likely
If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
Urban Digs has a great post on the reasons New York City (Manhattan) Real Estate will not be as likely to have a major slowdown as other cities such as Miami and Las Vegas are likely to have. It covers some of the more obvious point covering economic and scarcity of land, but they have a great point on the make up of property ownership and the prevalence of Co-ops.
75% of New York City is Co-op: This is a biggie when looking at home ownership in New York City. 75% of the city is made up of Co-op’s. As we all know, Co-ops as private corporations that sell stock in the company rather than real property (as Condo’s are) when a transaction takes place. We also know that Co-ops have board policies that restrict who can and cannot buy and live in the building. The reason is that the current shareholders of the company (the building itself) must protect their interests by limiting the type of person that buys into the corporation. With these restrictions in place, buyers must meet financial and personal guidelines to be approved by the board. via Urban Digs.
My wife has actually decided to study for and get her real eatate licence just so we dont ever have ...
I like your analogy in this article. The real estate economy really is like a patient who you cannot ...
Real Estate is hyper-local. Every market is different. Phoenix has already hit bottom and is starting to recover. We have ...
Great to hear that the big boys
are predicting recovery sooner than
most think.
Thanks for the value! 
I agree--good analogy. You have to crawl before you can walk. Right now, at least in Austin, many people would ...
I live in the Philippines and I am glad we are not on the lists... 
I have a few Litograghs of Presidents homes , made by Richard V. Sebring. yr. 1990 Do they have any ...
I see the question I have, but no response. I do not have a for sale sign up ...
Comment by Empty Spaces on 25 February 2006:
spoken like a true real estate agent!!!
i read the post and had some problems with the reasoning.
points 1,2,& 5 are all applicable to tokyo, japan, where land is even more scarce. Japan just got out of a down cycle where prices dropped and stayed flat for 15 years. all these things could be equally applicable to NYC.
point 4 is irrelevant to the pricing of NYC.
point 3 is the only relevant point with some truth to it. I’ve heard many co-ops don’t allow mortgages on the the apartments and buyers must pay cash. however I don’t know whether the number is really 75% or not. But if the US goes into a depression which is might[seeing as we have an inverse yield & a spike in oil prices, but of which have been linked to previous recessions] the owners might suffer during this period too.