Rental Glut Makes NYC the Worst Performer for Equity Residential

[Weird Tolkienish Figure]

https://www.bloomberg.com/news/articles/2018-01-31/rental-glut-makes-nyc-the-worst-performer-for-equity-residential

Equity Residential has a New York story, and it doesn’t have a happy ending -- at least, not yet.

The metro area, where developers are churning out thousands of new rentals, and tenants have the luxury to bargain, was the only one that showed a decline in rent for the publicly traded landlord in 2017.

"New York was our worst-performing market,” David Neithercut, the firm’s chief executive officer, said on a conference call today. “We still expect New York to be our worst-performing market.”

[Applewood]

One of my uber-liberal friends always talks about moving to NYC. She thinks the socialist/communist utopia would be perfect for her.  I used to tell her she would not like to pay thousands in  Manhattan for an apartment the size of a broom closet.  Even if she would live outside Manhattan and commute every day, she would still be paying far more in rent than she would for any apartment here in Western PA. Plus commuting every day sucks and the cost of living in other economic factors would be much higher than here.

But being the uber-liberal that she is, she won't change her mind, although she has yet to make any effort to fulfill her dream. I think deep down she knows I'm right, knows she can't afford to live in that hellhole, but she won't admit it.

[aligncare]

Commercial space however is still through the roof. Noticeable as restaurants that had traditionally  preferred street level are starting to relocate to more affordable second and third floor locations.

[Applewood]

Commercial space however is still through the roof. Noticeable as restaurants that had traditionally  preferred street level are starting to relocate to more affordable second and third floor locations.

Still way too overpriced IMO. 

I've been to NYC a couple of times.  Didn't really impress me.    So it has theaters, restaurants and other ameneties. But so do other cities and even small towns.  Quite frankly, I'd rather eat at the local diner less than a mile from my house than at some overpriced restaurant in Manhattan.  Food is better at the local  diner too.

Just really not worth spending the money.

[Weird Tolkienish Figure]

One of my uber-liberal friends always talks about moving to NYC. She thinks the socialist/communist utopia would be perfect for her.  I used to tell her she would not like to pay thousands in  Manhattan for an apartment the size of a broom closet.  Even if she would live outside Manhattan and commute every day, she would still be paying far more in rent than she would for any apartment here in Western PA. Plus commuting every day sucks and the cost of living in other economic factors would be much higher than here.

But being the uber-liberal that she is, she won't change her mind, although she has yet to make any effort to fulfill her dream. I think deep down she knows I'm right, knows she can't afford to live in that hellhole, but she won't admit it.

NYC is pretty capitalist though. Maybe not your/my cup of tea, but the city is like the hub of capitalism in the country, almost literally.

[Frank Cannon]

NYC is pretty capitalist though. Maybe not your/my cup of tea, but the city is like the hub of capitalism in the country, almost literally.

LOL. Give me a break. They still have rent stabilized housing there. That is as far from Capitalism as you get.

[Weird Tolkienish Figure]

LOL. Give me a break. They still have rent stabilized housing there. That is as far from Capitalism as you get.

I had thought the rent stabilized units were just grandfathered in and the practice basically stopped (at least for new apartments)?

[thackney]

I had thought the rent stabilized units were just grandfathered in and the practice basically stopped (at least for new apartments)?

Since newly constructed or substantially rehabilitated units are exempt from
rent regulation, increases to the regulated housing stock are frequently a
result of owners placing these new units under rent stabilization in exchange
for tax benefits.

http://www1.nyc.gov/assets/rentguidelinesboard/pdf/changes17.pdf

According to the New York City Rent Guidelines Board, that there are about 1 million rent-stabilized apartments in NYC. That's quite a lot, but what makes them elusive is the fact that once someone nabs a rent-stabilized apartment, they’re unlikely to leave.

https://ny.curbed.com/2017/4/13/15264890/nyc-apartments-guide-tips-new-york