3 ms·
Cannot speak for the poster, but the big current issue is that the value of residential units has gone from being strongly linked to wages to residences being a
by m0llusk 4y ago
Cannot speak for the poster, but the big current issue is that the value of residential units has gone from being strongly linked to wages to residences being an extremely valuable chip for playing financial games. Residences, especially inherently valuable ones like NYC apartments, have sufficient demand from financial game players that wage earners are barely able to keep up. Exactly how things break down is not clear, but there is this idea that demand for residences for financial purposes is competing aggressively with people who want homes.
- ch4s3 4y agoThis is a well studied idea, the percentage of units sitting empty is a round error in the total supply of housing. At the start of the pandemic there were a paltry 4000 vacant condos. For reference there are 2.3 million apartments in the city.
- thfuran 4y agoBut how many vacant apartments were there (or how many total condos)?
- ch4s3 4y agoThe vacancy rate of apartments is just at or under 4.5% which is considered a very tight rental market. I don't have the total condo numbers readily at hand.
- m0llusk 4y agoThat is not directly related. People and institutions holding residential units for investment purposes usually rent them out.
- ch4s3 4y agoThen they're on the rental market and don't contribute to a shortage in supply.