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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsWhy Manhattan's skyscrapers are empty
In Manhattan, the homeless shelters are full, and the luxury skyscrapers are vacant.
Such is the tale of two cities within Americas largest metro. Even as 80,000 people sleep in New York Citys shelters or on its streets, Manhattan residents have watched skinny condominium skyscrapers rise across the island. These colossal stalagmites initially transformed not only the citys skyline but also the real-estate market for new homes. From 2011 to 2019, the average price of a newly listed condo in New York soared from $1.15 million to $3.77 million.
But the bust is upon us. Today, nearly half of the Manhattan luxury-condo units that have come onto the market in the past five years are still unsold, according to The New York Times.
What happened? While real estate might seem like the worlds most local industry, these luxury condos werent exclusively built for locals. They were also made for foreigners with tens of millions of dollars to spare. Developers bet huge on foreign plutocratsRussian oligarchs, Chinese moguls, Saudi royaltylooking to buy second (or seventh) homes.
But the Chinese economy slowed, while declining oil prices dampened the demand for pieds-à-terre among Russian and Middle Eastern zillionaires. It didnt help that the Treasury Department cracked down on attempts to launder money through fancy real estate. Despite pressure from nervous lenders, developers have been reluctant to slash prices too suddenly or dramatically, lest the market suddenly clear and they leave millions on the table.
https://www.msn.com/en-us/money/realestate/why-manhattans-skyscrapers-are-empty/ar-BBZ0NDr?li=BBnbfcN&ocid=hplocalnews
This is sounding like 2008 again. Republicans are good at this game.
empedocles
(15,751 posts)Wounded Bear
(58,656 posts)or so some people say.