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Something like that might rent for 2400 to 3000 a month, if the pricing trends that I've observed hold. Even if such a thing existed, the average person couldn'

Something like that might rent for 2400 to 3000 a month, if the pricing trends that I've observed hold. Even if such a thing existed, the average person couldn't afford it in their wildest dreams.

maxsilver 11y ago
Yes, exactly. And I think that's a huge problem. We're overvaluing SQFT, and way undervaluing land. A 1100sqft condo with no land in a city, should be much cheaper than a 2200sqft stand alone McMansion on a quarter acre of private land. But today, the opposite is true. That's going to end up being a long term mistake. And because of the housing cost distortion, we're incentivizing people to continue that mistake.
- MajorLOL 11y ago
  >We're overvaluing SQFT, and way undervaluing land This is exactly it! We are seeing a ton of individuals who are not wealthy, even if they have a strong income. They are buying into the idea of paying these crazy rent prices to stay "connected" or in the "heart" of the urban areas. Access to these things is not granted by housing, you can attend every fancy nightclub, restaurant and bar while living 15min away in a drastically larger/cheaper living arrangement.
- vinceguidry 11y ago
  Why should it be? That's like saying that the $2.15 bottle of Coke you find at the counter should be significantly cheaper than the $1.99 two-liter in aisle 15. It's not, and there's a good reason for that. A two-liter and a 20 oz bottle are completely different products, different people are buying them for very different reasons. They don't compete against each other, they compete against other products in that segment. On the surface, a 1000 sqft condo in the city and a 2000 sqft house are comparable products. But they're not, they are marketed to completely different kinds of people whose selection criteria are not comparable in the least.
bradleyjg 11y ago
There's an article in today's NYtimes about tiny apartments (250-350 sq ft) starting at $2500/month in the Kips Bay part of Manhattan (i.e. a nice area but not the nicest or trendiest). The usual rule in NYC is that you must make 40x the monthly rent to rent an apartment. So those shoeboxes are being aimed at people making six figures. On the upside you get a virtual butler.

Something like that might rent for 2400 to 3000 a month, if the pricing trends that I've observed hold. Even if such a thing existed, the average person couldn't afford it in their wildest dreams.

maxsilver 11y ago

Yes, exactly. And I think that's a huge problem. We're overvaluing SQFT, and way undervaluing land. A 1100sqft condo with no land in a city, should be much cheaper than a 2200sqft stand alone McMansion on a quarter acre of private land. But today, the opposite is true. That's going to end up being a long term mistake. And because of the housing cost distortion, we're incentivizing people to continue that mistake.

MajorLOL 11y ago
>We're overvaluing SQFT, and way undervaluing land This is exactly it! We are seeing a ton of individuals who are not wealthy, even if they have a strong income. They are buying into the idea of paying these crazy rent prices to stay "connected" or in the "heart" of the urban areas. Access to these things is not granted by housing, you can attend every fancy nightclub, restaurant and bar while living 15min away in a drastically larger/cheaper living arrangement.
vinceguidry 11y ago
Why should it be? That's like saying that the $2.15 bottle of Coke you find at the counter should be significantly cheaper than the $1.99 two-liter in aisle 15. It's not, and there's a good reason for that. A two-liter and a 20 oz bottle are completely different products, different people are buying them for very different reasons. They don't compete against each other, they compete against other products in that segment. On the surface, a 1000 sqft condo in the city and a 2000 sqft house are comparable products. But they're not, they are marketed to completely different kinds of people whose selection criteria are not comparable in the least.

bradleyjg 11y ago

There's an article in today's NYtimes about tiny apartments (250-350 sq ft) starting at $2500/month in the Kips Bay part of Manhattan (i.e. a nice area but not the nicest or trendiest). The usual rule in NYC is that you must make 40x the monthly rent to rent an apartment. So those shoeboxes are being aimed at people making six figures. On the upside you get a virtual butler.