Posted by Frederick on July 19, 2001 at 13:01:48:
In Reply to: Tierney redux $25K buyout posted by SamE on July 19, 2001 at 11:29:32:
From Tierny's article:
"An increase in the supply of vacant apartments would push down the market prices across the city. In fact, as several landlords and economists noted, the biggest obstacle to the buyout scheme could be landlords' fear of falling prices. They're so used to a tight market that they wouldn't know what to expect from a surge of vacancies."
We hear this so often, and yet I believe it would take a plague, a thermonuclear explsion, or some other extreme degradation of the quality of life in NYC for this to EVER happen. With the collusion that goes on between landlords, brokers, contractors, the DHCR and other parties firmly planted on the owner side of the rent equation, rents in the city—and NOT just Manhattan—will never go down. When in the last 25 to 30 years has anything gotten cheaper? The breaking up of large utility monopolies, particularly telephones, was touted as a benefit to consumers since it would reduce prices. This is particularly true with cable televison. Rents will simply be jacked up to a level that will allow landlords to make huge profits above and beyond anything that would be dictated by market pressures in either direction. Anyone who believes for a moment that rents will drop in this city is delusionally psychotic and should seek treatment.
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