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The situation has become insane. Here is a 2 bedroom in Jackson Heights, Queens for $815k - where the median household income in the area (which is not really g
by JBReefer 9y ago
The situation has become insane. Here is a 2 bedroom in Jackson Heights, Queens for $815k - where the median household income in the area (which is not really gentrifying) is $51k:
https://www.zillow.com/homedetails/3413-80th-St-APT-52-Jackson-Heights-NY-11372/94639545_zpid/ https://www.zillow.com/homedetails/3413-80th-St-APT-52-Jacks...
I want someone to explain to me how this is going to work. We cannot structure our society this way, it leads to and has always lead to a landed gentry that is at a minimum semi-feudal, much less the social stability implications. The situation sounds much more serious on the West Coast, unbelievably.
I have no idea what's going to happen, but it's going to be bad, however this turns out.
- downrightmike 9y agoWe are kind of in the same place as the 2008 crisis, except the sub prime mortgages have been extrapolated out a level. The comercial product being sold today is the rent collected from the properties and the mortgage is the collateral. So if the renter can't pay, kick them out, The market shouldn't tank all at once, it will continue to go up 20% a year until nearly no one can afford to live in a house period. Then crash. edit: link: http://www.motherjones.com/politics/2014/02/blackstone-rental-homes-bundled-derivatives/ http://www.motherjones.com/politics/2014/02/blackstone-renta...
- throwawaymanbot 9y agoThere should be a financial penalty for a sale price where its well above a multiple of the median income. That coulld potentially cool the property bubblers down.