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0 pointsrayiner13y ago0 comments

First, there is no reason to believe outsiders to NYC have a better or worse grasp of the underlying economics than insiders to NYC.

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.

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michaelochurch13y ago

(and of course 2-3 months of "free" rent is economically indistinguishable from a drop in rents).

I hate the "free months" with a passion, because they carry an implicit rent-raise next year: even if rent stays the same, your effective rent rises because you're paying for 12 months instead of 11.

I usually try to negotiate the "free months" into a lowered rent (e.g. $2250/month instead of $2400 with a one-month concession). It means that I pay a little more in the first year, but next year's rent will be anchored to this year's.

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