Submitted by WarrenBuffetsDriver t3_10xv3er in nyc
[deleted] t1_j7uqr1p wrote
[deleted]
Pennwisedom t1_j7v3csw wrote
Except they do, generally rents drift downward in the winter.
BurninCrab t1_j7uyvry wrote
Rent prices go down if more housing supply is built
pigeonsmasher t1_j7xunj1 wrote
Not if demand outpaces it
DarthDialUP t1_j7zw4rv wrote
Rents will not go down if there was more supply; more supply would just get filled up. The pandemic rents was an unique event that can't be replicated unless there is a large, sustained exodus.
New supply would be luxury anyway, it is not worth it for developers anywhere in NYC to build "affordable" housing for anyone making less than 150k or so. Housing isn't built "to house people". They are built as investment vehicles. Manhattan is for transients, the rich, or rent stabilized. It is what it is. The reality is that the current market supports high rents. And there is no reason to believe, unless theres another catastrophic event, that the market won't continue to support even higher rents, ad infinitum. As I have said earlier in the thread, landlords and management companies know what they are doing way more than any of us. If a 1 bed is priced at 5k, it's because they KNOW FOR A FACT someone will rent it at 5k.
myassholealt t1_j7vdltp wrote
Is there historical data to support this claim? There is a lot of new construction that has happened over several decades. Rent is higher now than it was in 2000, 2010, 2015, 2020. Or do we have to wait 50 years minimum for the 'trickle down' to start flowing.
gigawort t1_j7wck16 wrote
Well, there's lots more people now, both in NY and in the USA. 630,000 people in NYC alone in the past decade. Yes, we did a lot of new construction, but not enough.
myassholealt t1_j7wquck wrote
...so no data. Just a claim not supported by rent pricing this century or for the last almost 4 decades. Got it.
gigawort t1_j7wtf93 wrote
Maybe you should take an economics class then.
myassholealt t1_j7wv1j0 wrote
Ah yes, the famous economics 101 comment. Of course. Before you lot, the economics 101 theory parroted was trickle down theory. Give tax cuts to the wealthy and it'll trickle down to the middle class.
The people of your mentality supported and advocated that theory, ignoring the reality, for decades. Results: shrinking middle class cause greed is allowed unchecked. Great job.
Now, it's build more! It'll eventually turn into lower rent prices for middle income people and lower.
I'm sure the wealthy appreciates the next generation advocating for them too.
And in 30 years, people will congratulate you on your in depth understanding of economics when rents never actually go down no matter how much was built cause sUppLY aNd DeManD is not the only reason rents keep going in one direction.
But, I get it, you gotta fight for real estate investors/property owners. Cause if you don't who will.
Meanwhile I'm wasting my time screaming into the void. Kinda reminds of 2020 when everyone here was just as confident that NYC was over and would never rebound. You guys definitely know best.
leapfoot t1_j7wxsm1 wrote
Trickle-down isn't an actual economic theory. It's bad faith politics given by conservatives to justify tax cuts for themselves.
No one is fighting for real estate owners in as much as people fighting to end hunger are also fighting for Big Agra. We're fighting for lower housing costs. If some people make money off that as a side-effect, that's what living in a capitalist society entails.
So what's your solution then Mr-Knows-better-than-everyone?
gigawort t1_j7wbfwe wrote
Not true at all, for example, Manhattan rents were down 2.4% YoY in Summer of 2018 (pdf warning)
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