The Rent Will Be Too Damn High
Money quote: “With a $700,000 budget, they were quickly priced out.”
Families are also being lured to Queens from Brooklyn by the space their money will buy. In March Betsy Hoffman, an agent with Brennan Realty Services, a brokerage that focuses on Brooklyn town houses, began helping a couple who have a year-old child and wanted to buy a free-standing house in Bedford-Stuyvesant. With a $700,000 budget, they were quickly priced out.
And the increase of rents and housing in and around NYC is going to keep spreading like this. This is not sustainable. The higher rents go, the harder it is going to be for the city to keep justifying rent-controlled and public housing.
Eventually, demand to live in NYC is going to go flat because the value of the city will cease to exceed the price of living there. The city will stop growing and will eventually start seeing a decline and it’ll be very hard for rents to start going back down.
New York City planners need to either hire or at least read Matt Yglesias’ “The Rent Is Too Damn High.”