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Manhattan rents cross $5k threshold for first time

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Re: Manhattan rents cross $5k threshold for first time

#71

Post by Victerius »

nickles wrote: post #51
spaniard89277 wrote: post #36

Housing and land is a non-transable good, and therefore there should be heavy state intervention on it, preferably by doing the same as Vienna, which is holding >40% of the renting stock and charging according to income, and renting to a representative distribution of tenants so to prevent guettos. Rent is the main detractor of disposable income which hurts the rest of the economy, and property owners provide almost…

> should be heavy state intervention on it, preferably by doing the same as Vienna, which is holding >40% of the renting stock and charging according to income This is great policy if you want to make housing unaffordable. When supply is less than demand, prices go up. Those price increases incentivize builders to increase the housing stock (which subsequently lowers prices). Capping prices prevents the price mechani…

Rents are already through the roof. If that hasn't incentivized builders to build enough housing to lower rents in places people want to live, why not go for the centralized solution?

CMV

The "let the free market take care of it; government intervention can only make it unaffordable" view is standing on extremely shaky legs today.

Re: Manhattan rents cross $5k threshold for first time

#72

Post by rpadovani »

Victerius wrote: post #3

Averages are skewed. Still. To meet the requirement of many landlords to earn in excess of 3x rent, one would have to earn 15k a month after tax, or 180k a year after tax. To earn 180k after tax in NY, you need to earn 300k pre tax. Your Income Taxes Breakdown Tax / Marginal Tax Rate / Effective Tax Rate / 2021 Taxes* / Federal 35.00% / 25.05% / $75,152 FICA / 2.35% / 4.70% / $14,104 State / 6.85% / 6.12% / $18,356 L…

> Income After Taxes: $181,196

What? I thought that in U.S. taxes would be so much lower than in EU!

In Bavaria, Germany, the income after taxes on €300,000 euros is €168.131,35 in the highest contribution bracket, and €178.251,07 in the lowest!

Re: Manhattan rents cross $5k threshold for first time

#73

Post by karatinversion »

nickles wrote: post #51
spaniard89277 wrote: post #36

Housing and land is a non-transable good, and therefore there should be heavy state intervention on it, preferably by doing the same as Vienna, which is holding >40% of the renting stock and charging according to income, and renting to a representative distribution of tenants so to prevent guettos. Rent is the main detractor of disposable income which hurts the rest of the economy, and property owners provide almost…

> should be heavy state intervention on it, preferably by doing the same as Vienna, which is holding >40% of the renting stock and charging according to income This is great policy if you want to make housing unaffordable. When supply is less than demand, prices go up. Those price increases incentivize builders to increase the housing stock (which subsequently lowers prices). Capping prices prevents the price mechani…

> Those price increases incentivize builders to increase the housing stock

Of course this does not work if building new housing is illegal, in which case you might as well have the rent control.

Re: Manhattan rents cross $5k threshold for first time

#74

Post by spaniard89277 »

nickles wrote: post #51
spaniard89277 wrote: post #36

Housing and land is a non-transable good, and therefore there should be heavy state intervention on it, preferably by doing the same as Vienna, which is holding >40% of the renting stock and charging according to income, and renting to a representative distribution of tenants so to prevent guettos. Rent is the main detractor of disposable income which hurts the rest of the economy, and property owners provide almost…

> should be heavy state intervention on it, preferably by doing the same as Vienna, which is holding >40% of the renting stock and charging according to income This is great policy if you want to make housing unaffordable. When supply is less than demand, prices go up. Those price increases incentivize builders to increase the housing stock (which subsequently lowers prices). Capping prices prevents the price mechani…

Yet it isn't working in most european cities. Price increases and capital holders always build behind the offer/demand curve so they get a better yield from it. Also, rent is always high enough to milk as much as possible from modal income, as demand is pretty inelastic.

Also, read carefully, I don't want price control directly onto the private sector but the adminsitration controlling a big chunk of the offer.

Re: Manhattan rents cross $5k threshold for first time

#75

Post by cies »

danjac wrote: post #54
afavour wrote: post #43

As a New Yorker myself I do wonder where this ends up. Me and my relatively well paid friends can afford to live here but we depend on a lot of lower paid folks for the city to function. Grocery store clerks, delivery drivers, coffee baristas, all that sort of thing. Maybe right now they have a half hour subway ride to work and that’s acceptable. But as they get pushed further and further out it’s going to break down…

Moreover artist communities flourish in urban spaces with cheap rent, like New York in the 1970s, Paris in the 1920s, Berlin in the 1990s and so on. Without that you just end up with Dubai or Monaco with shittier weather.

> Without that you just end up with Dubai or Monaco with shittier weather.

Well put, had to laugh.

Re: Manhattan rents cross $5k threshold for first time

#76

Post by phphphphp »

zabzonk wrote: post #13

Presumably "per month"? Still cheaper than central London though.

I live in central London and pay a lot of rent, but I disagree, I don't think it's possible to compare London rents to New York. Certainly, the average rent across the entirety of London might average out at similar levels because there's a large number of renters and the floor is higher but at the upper levels, our rent is cheaper: you can live in almost any building in London for £3k/month, it's almost impossible to find an apartment building here where the rental floor is >£3k/month, luxury in London is comparatively cheap.

Re: Manhattan rents cross $5k threshold for first time

#77

Post by nickles »

madsbuch wrote: post #69
nickles wrote: post #51

Earlier quoted context omitted.

> should be heavy state intervention on it, preferably by doing the same as Vienna, which is holding >40% of the renting stock and charging according to income This is great policy if you want to make housing unaffordable. When supply is less than demand, prices go up. Those price increases incentivize builders to increase the housing stock (which subsequently lowers prices). Capping prices prevents the price mechani…

> Those price increases incentivize builders to increase the housing stock Ahh yes, walking around in NY seeing building projects to increase the supply of housing in the 4th dimension where land is plentiful and the rivers are clean /s

> Ahh yes, walking around in NY seeing building projects to increase the supply of housing in the 4th dimension where land is plentiful and the rivers are clean /s

Have you tried obtaining building permits in NYC? My understanding is that it’s not easy. If you don’t allow builders to construct new housing then you won’t get new housing, regardless of price level.

Re: Manhattan rents cross $5k threshold for first time

#78

Post by spaniard89277 »

sokoloff wrote: post #63
nickles wrote: post #51

Earlier quoted context omitted.

> should be heavy state intervention on it, preferably by doing the same as Vienna, which is holding >40% of the renting stock and charging according to income This is great policy if you want to make housing unaffordable. When supply is less than demand, prices go up. Those price increases incentivize builders to increase the housing stock (which subsequently lowers prices). Capping prices prevents the price mechani…

Is housing unaffordable in Vienna? If so, your mechanism might explain it. If housing is not unaffordable in Vienna, your explanation seems likely to be missing something.

Housing is becoming unnafordable in Vienna again... because they didn't keep up with their program and now public offer is way behind of what should be.

Re: Manhattan rents cross $5k threshold for first time

#79

Post by foven »

nickles wrote: post #51
spaniard89277 wrote: post #36

Housing and land is a non-transable good, and therefore there should be heavy state intervention on it, preferably by doing the same as Vienna, which is holding >40% of the renting stock and charging according to income, and renting to a representative distribution of tenants so to prevent guettos. Rent is the main detractor of disposable income which hurts the rest of the economy, and property owners provide almost…

> should be heavy state intervention on it, preferably by doing the same as Vienna, which is holding >40% of the renting stock and charging according to income This is great policy if you want to make housing unaffordable. When supply is less than demand, prices go up. Those price increases incentivize builders to increase the housing stock (which subsequently lowers prices). Capping prices prevents the price mechani…

Yet somehow this doesn't seem to materialize in any meaningful way, the price of housing has only been going up exponentially and I'm sure builders are doing their best to build more but it's not getting any cheaper.

Re: Manhattan rents cross $5k threshold for first time

#80

Post by rpadovani »

anovikov wrote: post #2

Is this an average for newly signed rent, or for the average one already paid now? If former, it looks incredibly low. I mean, this is what you pay for an above-average (but not posh) place in East Europe capitals, and for pretty much average ones in old European cities like Paris or Munich.

What are you talking about? 5k in Munich, you can rent a 200mq apartment in Maxvorstadt
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