Stuck in the Middle
An article in this week’s Crain’s looks at how real estate prices and taxes are making the city increasingly unaffordable for the middle class. The rising cost of housing, in particular, has meant that families making between $80,000 and $150,000 a year are finding it more difficult than ever to make ends meet. Higher real…
An article in this week’s Crain’s looks at how real estate prices and taxes are making the city increasingly unaffordable for the middle class. The rising cost of housing, in particular, has meant that families making between $80,000 and $150,000 a year are finding it more difficult than ever to make ends meet. Higher real estate costs in Brooklyn, for example, have put the borough out of reach for many middle-income earners. A person profiled in the article who makes $60,000 a year looked all over Brooklyn before deciding to rent in Astoria. “Five years ago, [landlords] in Park Slope would have come to you,” he says. Interestingly, the story also notes that the city’s recent prosperity has contributed to a widespread sense of entitlement, thus making people believe that their incomes should stretch farther. “People used to squeeze kids into one bedroom; now everybody thinks every kid should get his own bedroom,” says Nicole Gelinas, a fellow at the Manhattan Institute.
Unaffordable NY: Tough Choices at $150,000 [Crain’s]
Photo by ultraclay!
Yes 1:35, that is a great argument – But how exactly is 1:29 wrong?
Its sad what this country has become, just look at the current Presidential candidates – So sad how all of these unqualified hacks are all jockeying to tell you what they are going to give you, how they are going to take care of you, things a president has absolutely no power over. Its just what most middle-class Americans want to hear – They are going to get everything they are entitled to for nothing – I love it.
1:29 – you are absolutely wrong.
you are dellusional, 1:19.
keep dreamin, though. it’s good for the soul.
not for the pocketbook though.
i agree with the person who said the entitlement issue is really a major societal issue which has degraded the united states significantly over the past few decades.
it’s the reason we will no longer be the world’s greatest super power in another 5-7 years.
this is a country mostly filled with lazy, obese slobs who think they they deserve the moon just because they were born.
it’s absolutely disgusting.
i don’t see it any any other culture the way it’s become here.
how many white, u.s. born people do you see starting their own businesses anymore here?
i’d say the numbers are slim.
Historically, middle-class families do not own houses in NYC. Certainly not in the upscale neighborhoods that are all that’s good enough for the readers of this blog.
Historically, middle-class families do not own ANY real estate in NYC. They rent. The majority of NYers have long been renters.
The average person can’t afford to buy? That’s right. If you cannot afford to buy, and instead rent—probably an apartment smaller than you’d like–you are an average New Yorker, historically.
There was a brief anomaly of a couple decades after the collapse of the 60s/70s where middle-class people could afford brownstones. Do not confuse this with the normal state of NYC real estate.
Keep dreaming 1:19 – You will be living in a closet forever.
As for what appreciated 200% in the last 7 years: Try Oil, Gold, Silver, Euros (If you consider it a commodity), my income, a college degree.
Housing costs went up 200% or so from 2000-2007. What other commodity went up that much? Nothing. Housing costs are over inflated – just as much as the egos of half the people on this site.
Can’t wait for the crash – then my little poor ass will be able to afford to buy something more than a closet.
What the article is really talking about is middle-earning FAMILIES. It’s all well and good to squeeze yourself and your squeeze (sorry) into an ever tinier, more distant apartment, but putting one or two kids in same apartment with a crappy school quickly becomes unbearable.
The article makes a great deal of noise about NYC/NYS income taxes, but doesn’t mention the increasingly burdensome property tax belt surrounding the City. Those fleeing to the suburbs for a liveable space trade a City tax tied to income for eternally rising property tax that demands to be paid whether or not you got laid off. You get to keep the state income tax regardless. And chances are you also get a longer commute.
Does NYC want to keep these middle-earning families? Or not? Are we content to be a city of super-high earners and single, rootless strivers?
to all the people that dont seem to have a problem with NYC becoming a playground for the rich…..
how can the real estate market maintain momentum without affordable starter homes that allow folks to build up equity and eventually trade up?
If you think it can, take a look at Westchester County. Yikes.
I wouldn’t be so quick to target clients (i.e. buyers and sellers) as greedy. As long as the ‘apparent’ market value of a piece of property is on point with what it is being bought or sold for, and buyer’s can afford it, it will be sold for that price.
Between 1948-1960 this city, like many others around the country, suffered the consequences of White Flight. Many just view it as whites moving to the suburbs segregating from the african-american population. What is conveniently forgotten is that african-american’s that could afford to purchase property were not given the same banking rights as whites, so they could not secure mortgages. Those that purchased homes had to do it with far more cash upfront then their white counterparties.
Now, there is a constant trend of reverse White Flight in the form of gentrification. There were and are many african-american’s, much like the couple we purchased our brownstone from, who own homes that were fully paid off years ago. They are profiting tremendously, and rightfully so. They HAD to raise their families in places that during that time were completely abandoned by this government and this city. No other options were available because they were not welcome any place outside of this urban jungle.
No. Buyer’s and seller’s in this city do not suffer from “entitlement issues”, it is those that are angry because they cannot afford to buy, that do. You want to buy a house in Brooklyn? Then save your money just like everyone else. You say you’ll never be able to because you don’t earn enough? Then get another/additional job. Do you know why immigrant’s that move to this city are able to eventually purchase homes? Because they do it by any means necessary. If they have to work 3 jobs, each, in order to save enough money, then they do it. If they have to live in a tiny, affordable, apartment with a family of 6 in order to save enough money, they do it.
But you’re above that, right? There is always a sacrifice in attaining those things that we desire most. But if you work hard, you’ll get it. Don’t poo-poo those that don’t have to, and don’t judge those that choose to. No one cares to hear about your inferiority-complex issues.