nyc re due for 70% price decline

and you didn't even factor in that rents are due to drop 60%, so it's more like a 90% decline. Of course at that point maintenance or taxes+common will be greater than rents, so you're really talking a 125% decline. And then can you imagine the rampant foreclosures, etc? Take off another 20%, and you're looking at a 150% decline. And of course that's just in $ terms. Factor in the imminent destruction of the dollar, and you are probably talking -200% in terms of gold or the yuan.

I have no comment on the New York part of this, but what's up with Minneapolis on one hand, and Omaha on the other? Freaky.

id seriously question the data quality of such a statistic. People need to understand, if your going to look into a stat like that, what data makes it up? Rental data is incomplete, inaccurate, and over inflated - due to net effective rents in slow times.

Granted that may make you think the number is low, but it just makes me question the stat altogether. Dont follow it! Yes, manhattan price to rent usually is above what otherwise is normal for other markets as indicator of over or under priced housing.

I'd also question attention anyone flashing headline grabbing numbers. A black swan is more likely.

that is truly hilarious coming from you.

As Noah points out, Trulia's data is totally suspect. Ever tried to use it to search for NYC properties? I doubt it's any more accurate for Omaha or Minneapolis.

That's the problem with data: garbage in, garbage out.

Unless it happens to corroborate your feelings. In which case it is always irrefutable.

Actually, Trulia is wrong. Prices are going to decline by 500%, which means that you will GET PAID to buy an apt.!

Brilliant retort columbiacounty!

"most bears were in the 10-15 or 15-20% range, a handful in the 20%s... and nobody claimed 50%."
(excerpt from: http://streeteasy.com/nyc/talk/discussion/21406-manhattan-2nd-quarters-prices-up-yoy)

I think we can safely put that notion to rest.

when pigs fly. or, possibly in the event of the apocalypse, but not certainly.

70% over how many years?

How many pigs, flying?

Truth,

I don't know. How are you?

Did you even look at the data? NYC is at 33!!!! Normal housing markets are at 8. To get to 8 the NYC market would have to lose 25 points or approximately 75%. And if anything, the apartment listings they have on Trulia are MORE EXPENSIVE than the general market which would make the multiple even higher than 33 - probably 38 to 40. So though Urbandigs may be correct that they do not have completely accurate data, the data that they are lacking would be the LESS EXPENSIVE apartments, making NYC even more overpriced. People forget that housing does have an inherent value....that value is what you could RENT it out for. These prices make ZERO sense right now. Anyone who buys now is seriously just asking to lose a ton of money. The numbers speak for themselves.

anon, while I agree much of the city's real estate is overpriced, I don't see anything that mandates that all price-to-rent ratios should be equal across the country. That seems to be the underlying hypothesis driving your conclusion, no?

"I don't see anything that mandates that all price-to-rent ratios should be equal across the country."

or across neighborhoods, buildings, layouts, or apartment size for that matter.