Posted on 04/03/2014 6:49:08 AM PDT by SeekAndFind
Sometimes success creates a problem. That's what happened in New York City with housing and homelessness.
New York's housing market is very strong. The median price for a new condo in Manhattan rose to $1.73 million during the first quarter of 2014, up more than 30.6% from the first quarter of 2013, according to a market report from the real estate firm Douglas Elliman. Across the East River, the median price for a Brooklyn home reached $570,110, up 11 percent from a year earlier. The average monthly rent in Bushwick, a central Brooklyn neighborhood, which as recently as the 1970s was a filled with vacant buildings, jumped 8.2 percent to $2,005. "Bedford Stuyvesant is unbelievably hot," one broker told the Daily News, referring to a part of Brooklyn that once was called a slum.
And the people keep coming. For the third consecutive year, New York City's population gained more than it lost through migration. For the year ending July 1, 2013, the combination of more move-ins with fewer move-outs led to the city gaining more than 60,000 residents. At 8.4 million people the city is now at its all-time high.
Joe Salvo, the director of the population division of the Department of City Planning, told the New York Times that the number of New Yorkers had grown by 2.8 percent since 2010. "That's big," he said to the Times' reporter.
How did this happen? First, the city's economy has been significantly stronger than the rest of the country. As my former boss Mayor Michael Bloomberg liked to point out, the city went in to the recession later and came out sooner than the rest of the country. In fact, it wasn't a Great Recession in New York. The recession in the 1980's was worse.
(Excerpt) Read more at realclearmarkets.com ...
Bailouts were heavenly for NYC
NYC housing is not a domestic housing market.
The city is something like $113 billion in debt.
The Keynesians like to say “But we have taxpayers” but they won’t have them for long at the rate the city is going.
Then comes the Federal NYC Bailout, Part Deux.
Anytime the USA can attract outside, asset heavy immigrants we all win. It’s happening in SF, NYC and Miami. It’s the first melt of the melting pot. These families end up employing many of us through the ripple effect, and bid up the stocks we own.
Exactly. All that TARP money was was poured into the Wall Street banker’s pockets. Awash with our children’s cash, it kept up thier property values.
Meanwhile the City’s infrastructure is silently rotting away. The cost to deal with this will be so high that the bubble will burst.
Its why I’m glad the Detroit problem is being kept primarily within Michigan.
It gives us the room to say “Hell no” when it comes to bailing out other cities that are going to collapse in the future.
This is not true. NY has thousands of non-performing mortgages. They have not been foreclosed on because that would drop housing values and even more people would abandon their now underwater properties.
the NY real estate market is so strong that any delinquent borrower can easily refinance
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