rental prices dropping?
Comments
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sweet tea wrote: oh noes!
yeah, I'm going to nap and finish reading twilight. which has nothing to do with rental or sales. so, to stay on topic, er. my broker is a very nice man! but he wants me to work miracles. anyone know a miracle worker? -
doctorj wrote: I'd be concerned and a little surprised if rents fall much, because carrying costs are up despite temporary relief in the form of asset deflation and a short-term rally in the $US. If rents fall, prices must fall that much further to bring the cost of renting more in line with the cost of buying, especially in a market where credit is extremely scarce. Or to put it another way, if rents are falling, deflation is widespread and you probably have a bigger problem, like you are at substantially increased risk of losing part or all of the source of income you use to pay the rent, such as your job. And you are at greater risk of moving in somewhere for less rent only to find it has been foreclosed soon after and you're out on the street. So be careful what you wish for, renters.
This ignores the fact that as upper middle class professionals are laid off, many of them are leaving NYC, decreasing overall demand for "better" housing stock.
This was reported by the NY Times within the past couple weeks. Not that that alone makes it true, but the article offered more than anecdotal evidence. Too lazy to search for it though. -
alafairnadia wrote: [quote=sweet tea]oh noes!
yeah, I'm going to nap and finish reading twilight. which has nothing to do with rental or sales. so, to stay on topic, er. my broker is a very nice man! but he wants me to work miracles. anyone know a miracle worker?
how about this guy?
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Lo Kee wrote: [quote=doctorj]I'd be concerned and a little surprised if rents fall much, because carrying costs are up despite temporary relief in the form of asset deflation and a short-term rally in the $US. If rents fall, prices must fall that much further to bring the cost of renting more in line with the cost of buying, especially in a market where credit is extremely scarce. Or to put it another way, if rents are falling, deflation is widespread and you probably have a bigger problem, like you are at substantially increased risk of losing part or all of the source of income you use to pay the rent, such as your job. And you are at greater risk of moving in somewhere for less rent only to find it has been foreclosed soon after and you're out on the street. So be careful what you wish for, renters.
This ignores the fact that as upper middle class professionals are laid off, many of them are leaving NYC, decreasing overall demand for "better" housing stock.
Which is kind of what I was saying: if prices are dropping, and to the extent like-stationed people prefer similar neighborhoods, it's a sign you could be about to have worse problems than finding a place to live.
It's like the recent fall in gasoline prices: whopping big cloud in front of any silver lining. -
ya i lost my job.
so i agree with doctorj -
[quote="Santa"]ya i lost my job.
*************************************
Does that mean we won't have a Christmas?
Why don't you apply for bailout funds to get you through the holidays. -
christmas is off
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Nonsense, I don't know where any of you are getting the idea that rents will drop. It all comes down to supply and demand--for every unit of "new inventory" that's created, there are still streaming lines of Converse-wearing newcomers jockeying to fill them.
Apartment listings are still getting swamped with replies just as much if not more than before. As of now, there is still nowhere near enough supply to make the demand sag. I don't know anyone is getting their hopes up that rents are going to somehow mysteriously drop for the same apartments that everyone still wants. -
On the one hand the rental price is what the market will bear, but on the other hand, most landlords are not willing to accept a loss in operating revenue in addition to falling equity prices. Despite the drop in oil/gas lately, taxes are due to rise substantially next year and other operating costs are ahead of where they were a couple of years ago. If there aren't enough renters to keep rentals more or less stable while home prices fall, something else has to give -- like lots of foreclosures and people leaving the owning market to raise cash and going back to renting, balancing out the demand. Normally in hard times rents stay firm when prices to buy are falling and only relax when demand to buy is high. Only a truly dire situation with mass unemployment and mass emigration to cheaper cities, the country, or other countries, is likely to prompt dramatic rent-cuts on medium-quality 1-2bdr apartments more than temporarily a few percent in such a nice, comparatively inexpensive (for inner NYC) and convenient neighborhood. High end places where carrying costs were a small percentage, or low end where everything is crashing and falling apart and people are fleeing for better or cheaper neighborhoods are another matter. But Prospect Heights is still a desirable quality middle-class place to put down roots, as I understand it has been year-in year-out for many decades even through the 70s and 80s. If the middle-class is deflating, I think it will be felt less here than plenty of other places in the city.
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doctorj wrote: [quote=Lo Kee][quote=doctorj]I'd be concerned and a little surprised if rents fall much, because carrying costs are up despite temporary relief in the form of asset deflation and a short-term rally in the $US. If rents fall, prices must fall that much further to bring the cost of renting more in line with the cost of buying, especially in a market where credit is extremely scarce. Or to put it another way, if rents are falling, deflation is widespread and you probably have a bigger problem, like you are at substantially increased risk of losing part or all of the source of income you use to pay the rent, such as your job. And you are at greater risk of moving in somewhere for less rent only to find it has been foreclosed soon after and you're out on the street. So be careful what you wish for, renters.
This ignores the fact that as upper middle class professionals are laid off, many of them are leaving NYC, decreasing overall demand for "better" housing stock.
Which is kind of what I was saying: if prices are dropping, and to the extent like-stationed people prefer similar neighborhoods, it's a sign you could be about to have worse problems than finding a place to live.
It's like the recent fall in gasoline prices: whopping big cloud in front of any silver lining.
True but we're talking about rent, not my (or anyone's) job security. -
We are quite probably on the leading edge of the most dramatic economic slowdown since the Great Depression.
If this turns out to be the case, there is simply no way current rents are sustainable.
The old saying "you can't get blood out of a rock" sums it up. -
haha ive never heard that saying before.
how about "you cant milk a rock". -
How about, "you can't eat a rock, but when times are tough you can fashion it into quite a useful tool".
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Santa wrote: haha ive never heard that saying before.
Or "you can't get blood from a stone."
how about "you cant milk a rock". -
meganlibrarian wrote: [quote=Santa]haha ive never heard that saying before.
Or "you can't get blood from a stone."
how about "you cant milk a rock".
Unless it's a bloodstone. -
doctorj wrote: [quote=meganlibrarian][quote=Santa]haha ive never heard that saying before.
Or "you can't get blood from a stone."
how about "you cant milk a rock".
Unless it's a bloodstone.
You could probably get more from a blood diamond. -
daver wrote: [quote=doctorj][quote=meganlibrarian][quote=Santa]haha ive never heard that saying before.
Or "you can't get blood from a stone."
how about "you cant milk a rock".
Unless it's a bloodstone.
You could probably get more from a blood diamond.
True, you can get more blood from a blood diamond. And you can draw some blood with any old stone, so long as you can lift it. -
perhaps a new mayor?
http://ny.metro.us/metro/local/article/Budget_drama_aside_rent_still_too_high/14361.html
...but I doubt it. -
I have a 1BR which has been vacant for a few weeks. We tried to rent for 1700, and I just dropped the price to 1600. Managing agent says people aren't moving as much so less demand for apartments.
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jml wrote: I have a 1BR which has been vacant for a few weeks. We tried to rent for 1700, and I just dropped the price to 1600. Managing agent says people aren't moving as much so less demand for apartments.
Hmmm -- where is it? And how many square feet? (We might need a rental place soon, if our deal to buy a place falls apart...) -
jml wrote: I have a 1BR which has been vacant for a few weeks. We tried to rent for 1700, and I just dropped the price to 1600. Managing agent says people aren't moving as much so less demand for apartments.
There's no way that could be in Park Slope (or even Prospect Heights Proper). Otherwise it would've been rented instantly once you put it on Craigslist. -
Lo Kee wrote: We are quite probably on the leading edge of the most dramatic economic slowdown since the Great Depression.
But rents won't come crashing down... Why not? Because if rents come down $150 a month, a know a couple people living Sunset Park or Kensington or Queens that could move back. There's pent up demand that will support prices.
If this turns out to be the case, there is simply no way current rents are sustainable.
The old saying "you can't get blood out of a rock" sums it up. -
prospectus wrote: [quote=Lo Kee]We are quite probably on the leading edge of the most dramatic economic slowdown since the Great Depression.
But rents won't come crashing down... Why not? Because if rents come down $150 a month, a know a couple people living Sunset Park or Kensington or Queens that could move back. There's pent up demand that will support prices.
If this turns out to be the case, there is simply no way current rents are sustainable.
The old saying "you can't get blood out of a rock" sums it up.
Exactly. What all these rent doomsday-sayers fail to realize is that the Chuck-Taylor-wearers are irrepressible, and will go to any lengths to live in Park Slope, even if it means going into debt just to be here.
And that is why the rents will never come down--at least not until 'they' find a new mecca. -
Obamanut wrote: [quote=prospectus][quote=Lo Kee]We are quite probably on the leading edge of the most dramatic economic slowdown since the Great Depression.
But rents won't come crashing down... Why not? Because if rents come down $150 a month, a know a couple people living Sunset Park or Kensington or Queens that could move back. There's pent up demand that will support prices.
If this turns out to be the case, there is simply no way current rents are sustainable.
The old saying "you can't get blood out of a rock" sums it up.
Exactly. What all these rent doomsday-sayers fail to realize is that the Chuck-Taylor-wearers are irrepressible, and will go to any lengths to live in Park Slope, even if it means going into debt just to be here.
And that is why the rents will never come down--at least not until 'they' find a new mecca.
let me make this simpler: when people have less money they cant pay as much for stuff. -
Lo Kee wrote: [quote=Obamanut][quote=prospectus][quote=Lo Kee]We are quite probably on the leading edge of the most dramatic economic slowdown since the Great Depression.
But rents won't come crashing down... Why not? Because if rents come down $150 a month, a know a couple people living Sunset Park or Kensington or Queens that could move back. There's pent up demand that will support prices.
If this turns out to be the case, there is simply no way current rents are sustainable.
The old saying "you can't get blood out of a rock" sums it up.
Exactly. What all these rent doomsday-sayers fail to realize is that the Chuck-Taylor-wearers are irrepressible, and will go to any lengths to live in Park Slope, even if it means going into debt just to be here.
And that is why the rents will never come down--at least not until 'they' find a new mecca.
let me make this simpler: when people have less money they cant pay as much for stuff.
or, in the case of slacker hipsters: When people's daddies and mommies have less money, they give their children less money.... -
whynot_31 wrote: [quote=Lo Kee][quote=Obamanut][quote=prospectus][quote=Lo Kee]We are quite probably on the leading edge of the most dramatic economic slowdown since the Great Depression.
But rents won't come crashing down... Why not? Because if rents come down $150 a month, a know a couple people living Sunset Park or Kensington or Queens that could move back. There's pent up demand that will support prices.
If this turns out to be the case, there is simply no way current rents are sustainable.
The old saying "you can't get blood out of a rock" sums it up.
Exactly. What all these rent doomsday-sayers fail to realize is that the Chuck-Taylor-wearers are irrepressible, and will go to any lengths to live in Park Slope, even if it means going into debt just to be here.
And that is why the rents will never come down--at least not until 'they' find a new mecca.
let me make this simpler: when people have less money they cant pay as much for stuff.
or, in the case of slacker hipsters: When people's daddies and mommies have less money, they give their children less money....
word. -
Lo Kee wrote:
Correction: When rationale people have less money, they forego stuff they don't need.
let me make this simpler: when people have less money they cant pay as much for stuff.
When tussled-hair Converse-wearers have less money, they lie in wait on the outskirts of Park Slope, seething, dreaming, plotting and planning for the day they can regain their bragging rights among other Converse-wearers by moving back into the neighborhood. -
for every person or family in sunset park trying to move to park slope theres someone or some family in park slope trying to move to _______.
the prices to buy and rent has been seriously inflated over the last 10 years and when the top cant pay top prices everything slides down to correct.
also Park Slope is not considered cool in these "converse wearing" circles you guys speak of. While it may be beautiful, safe and have alot of shops and restaurants its not cool. -
Obamanut wrote: [quote=Lo Kee]
Correction: When rationale people have less money, they forego stuff they don't need.
let me make this simpler: when people have less money they cant pay as much for stuff.
When tussled-hair Converse-wearers have less money, they lie in wait on the outskirts of Park Slope, seething, dreaming, plotting and planning for the day they can regain their bragging rights among other Converse-wearers by moving back into the neighborhood.
Maybe I'm just at the age where someone cracks under the strain of city living, but I know at least three couples who are in the process of, or already have, left Park Slope for cheaper, more spacious digs in other neighborhoods. I know at least two other couples who are considering leaving NYC altogether. There must be people who are willing to pay these rents, or people wouldn't keep getting priced out.
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