Brooklyn Top Borough for Stalled Developments
The New York Building Congress said yesterday that there are still nearly 700 stalled building projects in New York City. And guess where nearly half of those stalled project are located? Yep, Brooklyn. Queens was runner-up with almost a quarter; about two-thirds of the stalled projects are residential. According to Reuters, which was carried the…
The New York Building Congress said yesterday that there are still nearly 700 stalled building projects in New York City. And guess where nearly half of those stalled project are located? Yep, Brooklyn. Queens was runner-up with almost a quarter; about two-thirds of the stalled projects are residential. According to Reuters, which was carried the report, this data suggests that “construction is lagging the broader economy in recovering from the recession.” Makes sense given the general state of paralysis that most bank lending departments are in.
NYC Construction Industry Recovery Lagging [Reuters]
“Banks are holding us back” Oh, really?
You have a 20% down-payment, the ability to afford your monthly payment and no bank is going to hold you back. They didn’t hold me back 4 months ago anyway.
This is back-to-the-real-world time my friends. If you can’t afford to buy, you can’t buy. Sounds simple enough to me.
Here is the link to the stalled projects in the 5 boroughs. They update it pretty often.
http://www.nyc.gov/html/dob/html/guides/snapshot_report.shtml
“If Brooklyn RE and the NYC economy was really recovering, you simply wouldn’t have these stalled developments, predominant in Brooklyn”
your economics, god help us, may be right, if so, might as well curl up and stay put i agree
however, your real estate is inaccurate
we only now need the sites to be built, and they are being chased because of recovery will take some time, and there will be a shortage before their is plenty again
i am around RE since 1980 only, but has seen a few cycles
we have these sites because they are tied up by banks, liens, second mortgages, and strange people and are hard to untangle, plus there are now plenty of condos also has been no lending to get and build sites, until recently
“Too bad it won’t happen.”
No, too bad it will happen by market force. The bond market will implode and/or QE/printing/dollar-debasement/durable-goods-inflation will annhilate profit margins. Interest rates will spike and stocks will crash further. It’ll be even worse if the FED fully monetizes the debt and hyperinflates our currency out of existence. It will happen in either a controlled or chaotic fashion. The latter at the rate congress is moving.
Any near term condo “shortage” will be outdone by a longer term, credit-deflated demand shortage. Worsening undermployment (including those whose benefits have run out), higher rates, even tigher credit and fear will result in a condo glut. This is why it’s stupid to buy with low rates and high prices than the other way around. There’s little or no downside in mortgage rates. You’d be taking a huge risk of having to sell into rising rates and lower prices. A lot of people are going to get hurt all over again.
If Brooklyn RE and the NYC economy was really recovering, you simply wouldn’t have these stalled developments, predominant in Brooklyn.
“This cycle has happened in NYC for decades.”
Well this is unchartered territory for our generation. Your veteran years only go back so far. We are reliving the 1930’s. This time Congress and central banks are merely buying time before an all out real estate collapse below equilibrium that takes down the big banks.
***Bid half off peak comps***
Half-off, i don’t disagree. Too bad it won’t happen.
There will be a shortage of condo product by winter 20011/12, by shortage i mean few options for buyers. Most all project steadily selling out and little is being developed. This cycle has happened in NYC for decades. Not news.
We’re #1! Suck it, Manhattan!
Does anyone know where we could access a list of those “stalled projects”?
“construction is lagging the broader economy in recovering from the recession.”
I’d say it’s leading. Housing speculation was and still is the driver of our economy (whether up a ramp and airborne or off a cliff).
“Banks are holding us back.”
No, WE’RE holding us back. Congress has the power to take the insolvent banks (that would be Citi, BofA, JPM Chase, Wells Fargo, and many others) into receivership under the Dodd-Frank Act, clear the non-performing debt, mark properties to market, restructure and start lending again. Housing and stocks would crash and we’d suffer an impulsive but short pain in our economy but we’d recover relatively quickly unlike during the 30’s and in Japan. Iceland did it, why can’t we? We’re allowing the banks to bribe congress through campaign contributions. The banks are hoarding cash in an attempt to litigage and/or absorb the colossal mortgage securities fraud putbacks by pension funds, investors, etc. That’s why this wikileaks guy is being sought for “rape”.
“Banks, get the f— out of the way already.”
That’s what I want to hear out of Congress.
***Bid half off peak comps***
Let’s re-inflate this bubble NOW!
No wait… everything is still overvalued.