The Skinny on New Condos? Anyone?
I’m a New Yorker coming back home after years in California. The amount of new construction/condos is mind-boggling, but a lot of it seems to be empty despite decent prices for what seem to be decent places. Why is this? Just the economy? Or is there a sense that the new condos aren’t nice places…
I’m a New Yorker coming back home after years in California. The amount of new construction/condos is mind-boggling, but a lot of it seems to be empty despite decent prices for what seem to be decent places. Why is this? Just the economy? Or is there a sense that the new condos aren’t nice places to live? Or maybe even poor investments? Is there even a cultural backlash against them? Any insight would be welcome, thanks.
New York real estate developers and corporate landlords don’t want prices going down so they’d rather leave apartments empty than drop the prices. It’s bizarre but it’s the way it is. Landlords don’t want to risk going too low in case the new legislature expand rent stabilization. Developers don’t want to drop because they don’t want to face a bunch of angry buyers demanding a refund of part of their purchase price. Unfortunately the pool of developers and corporate landlords, especially in Manhattan, is small enough that they operate as a cartel. There may be more room to move in the outer boroughs.
quizzote:
decent prices
:-/
Thanks, denton, I figured that was a big part of it, but is there more? How do the communities feel about all these condos popping up all over the place? And are any of them decent? I went into a couple (that shall remain nameless) and they felt very poorly constructed…
A lot of supply, a lot of fear on the demand side.