4 ms·
That would work in a normal market but the realestate market hasn't been allowed to correct because we keep bailing it out by having the fed buy up all the debt
by swiley 6y ago
That would work in a normal market but the realestate market hasn't been allowed to correct because we keep bailing it out by having the fed buy up all the debt. This raises rent because it decreases the supply (people can just hold onto buildings as investments and not bother renting them out or wait for someone willing to pay something that should be above market value) and also raises inflation.
Let me explain it to you simply: The landlords made a bad investment, bailing them out forces everyone else to pay for it. In the "it's my property" sense it's identical to forcing someone to house homeless people (although the comparison still isn't the same because the landlords generally don't live in the buildings they're renting out.)
- TuringNYC 6y agoI always found it curious how large employers in Manhattan would be moving out because the rent was too high. Simultaneously buildings would be converting into condos because they were unable to fill vacant commercial space. As an example, two buildings where I worked had this happen: 70 Pine Street (AIG) and 75 Wall Street(JPMorgan.) Doesnt the market meet somewhere in the middle?
- nickff 6y agoI am not sure about NYC, but commercial property taxes are usually very high, and borne by the tenants; this may be a factor in the employers moving out.