It was bound to happen sooner or later.
The real estate bust of 2008 is finally having an impact on one of the last hold outs, New York City.
Manhattan, in particular, seemed all but immune to the current subprime mortgage mess mostly because foreign buyers were able to take advantage of the declining value of the U.S. dollar.
But, now, even that bubble has apparently burst.
The Real Estate Group in New York reports that rents in Manhattan decreased last month by more than 7 percent.
The last time rents actually went down in Manhattan, George Washington was president!
Part of the reason, no doubt, is that, even in New York, there is somewhat less demand for expensive condos and co-ops leaving many to the rental market. That translates into lower prices.
According to Multi-Housing News, there are some who believe the situation in New York will now worsen..a lot.
It quotes James Hughes , dean of the Edward J. Bloustein School of Planning and Public Policy at Rutgers University as saying that housing “might be twice as bad as the period after the 1980s real estate bubble.
One bright spot here…according to Huges, those who held on to their real estate property throughout the last bust and subsequent upswing saw their houses, on average, double in value.
Related posts:
- Greetings from New York!
- $2 Million in Development Funds Up For Grabs in Upstate New York
- Median Home Prices Fall First Time in 11 Years
- Living Among Celebrities in New York
- Fortress Manhattan: No Real Estate “Crisis” There
Article Author: Charles FeldmanCharles has written 179 articles for us.
Visit Charles's Website: http://www.thefeldmanblog.com
Charles is currently reporting for KNX Radio in Los Angeles, is the co-author of the book No Time To Think, and can be found commenting about the news on his blog, The Feldman Blog, as well as on The Huffington Post.
Joshua Dorkin
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Wow. I suppose this bubble is going to extend over other countries as well. I’m expecting it to happen in my country every moment now. Over the past 5 years the rents and apartments prices have gone up by 12 times, or even more. I don’t know how long it can go like this, it’s really crazy.
I wonder how this is going to impact the Canadian Real Estate Market. What do you think?
It would be interesting to see the breakdown, according to property type. Was it commercial, or residential and how did the “blue collar” rentals fare compared with the ritzy ones?
Steven Boorstein
Even now, after all that’s happened… I would hardly call Manhattan cheap.
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