3 ms·

I don’t know about the dynamics in NYC but in SF a lot of landlords can afford to keep commercial spaces vacant, and apartments emptied out. The opportunity cos

by SllX 6y ago

I don’t know about the dynamics in NYC but in SF a lot of landlords can afford to keep commercial spaces vacant, and apartments emptied out. The opportunity cost in not leasing out can be made up for by holding out for tenants that will overpay on the commercial side, and rent control makes renting apartments out for too low a price unappealing on the residential side. Kill both Prop 13 (entirely, not just sections of it) and rent control and you might see some normalcy return to the California property and rental market.

swiley 6y ago
It's not just prop13 and it's not just in California. The Federal reserve has been buying mortgage backed securities to keep the market from correcting (similar to ~2008.) Because of this you can finance the construction and sale of small amounts of luxery space without having to worry nearly as much about being able to rent it for a profit. Essentially we have insane inflation but it's been carefully architected to only really affect real estate.