>>>The high rents here are driven by (a) asshole foreign speculators that the government irresponsibly lets into the market, when a 6-months-and-1-day rule is really in order, (b) various legacy rent-control systems that wouldn't be a big deal except in the context of extreme price inelasticity
Um, no. Second-generation life-long New York native here.
These insane prices are driven up by people like you who come here, don't know the proper prices, don't know why the hell we have rent control or what it is and never check to see if you're being ripped off, and so drive everything the hell up. Period.
As of 2011, more than 60% of all apartments in New York are price regulated in some way. Rent stabilization destroys the incentive for developers to maintain and improve properties, and combined with the ridiculous historical preservation laws binds their hands in replacing properties with higher-capacity housing.
That's why most of the housing in Brooklyn and Queens is former tenement housing built god knows how long ago and maintained like crap. Landowners can't easily decide to just tear that shit down and put up mid/high-rises that could house 10x more people and bring down prices.
Also, Brooklyn, Queens and the Bronx have plenty of nice, and dense, housing. You should try leaving Downtown Manhattan by Disney World (tm) every once and a while.
[1]http://www.nytimes.com/2012/07/08/realestate/rent-stabilized...
Except rent prices never go down. This is what you outsiders don't freakin understand. Even if you got rid of the rent control and stabilization laws, made it all "free" market, you'd never, ever see a decrease in rents. When people fled post-9/11 and no one was renting, rents did not go down. They side-stepped that by offering one or two or three months of "free" rent, while the registered rent remained in the city's books. Rents never decrease. And never will unless there is some catastrophe that makes the city inhospitable.
Hence the games you see being played.
Prices in NYC do go down. Rents in NYC fell 10-12% during the down turn (and of course 2-3 months of "free" rent is economically indistinguishable from a drop in rents).
Moreover, rents are sticky like most prices. What increased supply does is keep the rent from going up so quickly.
New Jersey is a free rent market. Hoboken and Jersey City rents went sky-high from the 1980s on -- even as ginormous skyscraper apartments were being built on the waterfront as "affordable" (to who!) apartments. Everyone who had lived there for decades got screwed out of living there.
You should then do me a favor and tell me how I get a deal at the proper prices. I agree; the cost of living here is ridiculous. Show me how not to pay four-digit rents for a 1BR within 30 minutes of work and I will be very grateful.
don't know why the hell we have rent control or what it is and never check to see if you're being ripped off
Rent control was originally set in place in the 1940s to prevent a housing spike when people came back from the war. A good thing? It would be, if everyone could participate. Right now, though, that's not the case.
I have no problem with those who were alive during that time keeping rent-control. However, I do have a problem with it when people making $250,000 per year get in on RC because they have connections and pay key money to the children of the deceased. That I have a problem with. And then these hypocritical limousine liberals brag about how they're "sticking it to The Man" by using their connections to get a deal literally superior to ownership.
Oh, I agree completely. I once worked for a boss making six figures who was paying the kind of rent I could afford and he was lucky because he'd been in that place for over twenty years. But what's the solution? If you charged him rent based on his income, the registered rent increases, and will never go down because the landlord will make sure the next tenant has a six-figure income.
New York City rents are an insane system that really does no one any good, especially for those who work and don't make six figures -- which is most of the people who live in NYC.
Not that either one effects the outer boroughs much (minus the parts of Brooklyn that might as well be Manhatten). As it happens that other city is also where you'll find most real New Yorkers living.
