http://www.theatlantic.com/business/archive/2011/06/why-real-estate-prices-spike-in-places-like-manhattan/240459/
writes Yglesias, "they're specifically purchasing a commodity -- space with easy access to the core business districts of America's largest city -- that the market puts a very high price on."
It's a commodity that reflects two underlying price premiums. The first is an amenity premium -- the price people pay to be around great restaurants, museums, theater, and culture as Harvard's Ed Glaeser and others have shown. The second is a productivity premium, for the economic leverage that comes with such central locations. As the University of Chicago economist Robert Lucas famously put it: "What can people be paying Manhattan or downtown Chicago rents for, if not for being near other people?" It's this underlying productivity effect that generates higher incomes, which in turn lead to higher prices.
The end result is a geography organized around economic spikes which, like central Manhattan, show us that even in the era of far-flung globalization, location remains economically more important than ever before.
[less]
The real estate story is fluff - yes, in most cities it's more expensive to live in the center. The question is, how much more expensive, and why.
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Response by kylewest
over 14 years ago
Posts: 4455
Member since: Aug 2007
steve: "the question is, how much more expensive and why."
Not so much. The question really isn't "how much more expensive." That's kind of known. You just look and see. Not much of a question, is it? And "why?' It's kinda the same answer in all more expensive central areas: because they are central areas. Duh. This is just the epitome of how dumb the postings of some regular posters on this forum have become.
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Response by w67thstreet
over 14 years ago
Posts: 9003
Member since: Dec 2008
NEWSFKINGFLASH!
If I choose to be a hindu, then all the other religions by default are fktarded.... next.
kylie minogue... agree... the regular poster riversider ate bad cream cheese...
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Response by stevejhx
over 14 years ago
Posts: 12656
Member since: Feb 2008
KW: What?
What is stupid is the article - not all city centers are more expensive: Detroit, Los Angeles, Miami, etc., are not but many are, and there are many reasons why they are more expensive. That "Manhattan is an island" is not the reason: this isn't Rikers; it's an easy island to get off of. Rent stabilization may be one reason. High levels of employment and income may be another. The availability of rental alternatives may be a third, and there are many others.
And those reasons change: once upon a time no one wanted to live in Manhattan, and Stuyvesant Heights - Bedford Stuyvesant, as it is known today - was one of the most expensive parts of the city, as was the Grand Concourse in the Bronx.
Things change. My point is that - over time - every area reverts to a direct correlation between incomes and rents and property prices. More rich people moving into Manhattan - for whatever reason - will drive up prices. That was true during the last 10 years, The Bubble Era, starting with the dot.com bubble.
We're now in a final - for a time - bubble: the Fed has painted itself into a corner. If it pumps more money into the economy inflation will increase further, and the economy will slow down and the markets crash. If it does nothing, and prices don't fall of their own, they economy will slow down and the markets crash. And if it withdraws liquidity from the market the markets will crash.
That's why I've dubbed it QE-Stupid. Horrific supply-side economics doing its best to destroy the economy. And it works every time.
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Response by ekartash
over 14 years ago
Posts: 364
Member since: Jun 2007
i just spent the afternoon walking with my wife and kid to the union sq market, followed by a walk along the waterfront to lot 30 under the highline for some beer and food trucks for adults and formula for the kid. this was followed by a walk to the new tod english place in the lime light. after a few beer for me, sangria for the wife, and some fried pig ears, we stopped by eataly to pick up some soft shell crab that we plan to grill on our roof in a few hours. i love this city!!!!
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Response by jim_hones11
over 14 years ago
Posts: 82
Member since: Mar 2010
Formula? Is your wife incapable of nourishing your child?
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Response by NYCMatt
over 14 years ago
Posts: 7523
Member since: May 2009
Well, given the fact that she's drunk on Sangria ...
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Response by falcogold1
over 14 years ago
Posts: 4159
Member since: Sep 2008
I'm old enough to have been in Manhattan during the great white suburban flight.
Times change, attitudes change, cities change.
We happen to live at a time and a place that is desirable to live for many factors.
The one thing you can count on staying the same is CHANGE.
Some day we will buy huge apartments in buildings that use to be banks.
How many residential lofts use to be garment companies?
Tudor city windows don't face the east river because the river front was occupied by slaughter houses.
Meat packing district use to pack meat (transvestite and traditional)
Avenue C & D were once creepy haunts of the heroin addicted
Midtown Manhattan in the 70's was littered with SROs and welfare hotels such that you never walked alone or failed to look over your shoulder.
I never rode my bike to central park in the 60's and 70's because that bike would have been a donation.
Change Change Change
Change of fools
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Response by huntersburg
over 14 years ago
Posts: 11329
Member since: Nov 2010
jimhones, ekartash didn't deserve that. He didn't attack anyone, or even any point of view. He said he loved the city.
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Response by huntersburg
over 14 years ago
Posts: 11329
Member since: Nov 2010
>Change Change Change
Yes, and upstate New York used to be vibrant. Stevejhx' argument that Manhanhattan will become undesireable because parts of it were at one point, seems to parallel an argument that Buffalo will soon revert to its populations from the 1930s-1960s, double the population today.
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Response by ekartash
over 14 years ago
Posts: 364
Member since: Jun 2007
falcogold, i agree about change. but it seems to me that everything you used to experience has changed for the better. and while i do not agree with how commercial some things have become, it is nice to be able to walk around most of the island without any fear of being mugged, robbed, etc..
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Response by ekartash
over 14 years ago
Posts: 364
Member since: Jun 2007
jomhones, the reason my kid drinks formula is because i am a selfish father. i suck all the milk out of my wife's tit before he gets a chance to have any. idiot.
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Response by jim_hones11
over 14 years ago
Posts: 82
Member since: Mar 2010
Jesus, that's disgusting. Haven't you guys read any parenting books? The stuff about healthier kids, better bonding, etc?
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Response by marco_m
over 14 years ago
Posts: 2481
Member since: Dec 2008
"i suck all the milk out of my wife's tit before he gets a chance to have any. idiot."
that was a good one.
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Response by lucillebluth
over 14 years ago
Posts: 2631
Member since: May 2010
maybe the most disturbing thing i've ever read in real time from a real person.
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Response by falcogold1
over 14 years ago
Posts: 4159
Member since: Sep 2008
RClavi.........sounds like you're quite the dish
petri dish
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Response by RClavi
over 14 years ago
Posts: 69
Member since: Aug 2007
badum-dum-pshh thank you kansas city, donation jars will be passed around.
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Response by RClavi
over 14 years ago
Posts: 69
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badum-dum-pshh thank you kansas city, donation jars will be passed around.
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Geographic force field on!
Fights from 2 years ago:
http://streeteasy.com/nyc/talk/discussion/12432-the-struggling-rent-stabilized
Location, location, location??? Wow, who knew???
In other news, the Pope is Catholic.
True on both counts re the pope.
The real estate story is fluff - yes, in most cities it's more expensive to live in the center. The question is, how much more expensive, and why.
steve: "the question is, how much more expensive and why."
Not so much. The question really isn't "how much more expensive." That's kind of known. You just look and see. Not much of a question, is it? And "why?' It's kinda the same answer in all more expensive central areas: because they are central areas. Duh. This is just the epitome of how dumb the postings of some regular posters on this forum have become.
NEWSFKINGFLASH!
If I choose to be a hindu, then all the other religions by default are fktarded.... next.
kylie minogue... agree... the regular poster riversider ate bad cream cheese...
KW: What?
What is stupid is the article - not all city centers are more expensive: Detroit, Los Angeles, Miami, etc., are not but many are, and there are many reasons why they are more expensive. That "Manhattan is an island" is not the reason: this isn't Rikers; it's an easy island to get off of. Rent stabilization may be one reason. High levels of employment and income may be another. The availability of rental alternatives may be a third, and there are many others.
And those reasons change: once upon a time no one wanted to live in Manhattan, and Stuyvesant Heights - Bedford Stuyvesant, as it is known today - was one of the most expensive parts of the city, as was the Grand Concourse in the Bronx.
Things change. My point is that - over time - every area reverts to a direct correlation between incomes and rents and property prices. More rich people moving into Manhattan - for whatever reason - will drive up prices. That was true during the last 10 years, The Bubble Era, starting with the dot.com bubble.
We're now in a final - for a time - bubble: the Fed has painted itself into a corner. If it pumps more money into the economy inflation will increase further, and the economy will slow down and the markets crash. If it does nothing, and prices don't fall of their own, they economy will slow down and the markets crash. And if it withdraws liquidity from the market the markets will crash.
That's why I've dubbed it QE-Stupid. Horrific supply-side economics doing its best to destroy the economy. And it works every time.
i just spent the afternoon walking with my wife and kid to the union sq market, followed by a walk along the waterfront to lot 30 under the highline for some beer and food trucks for adults and formula for the kid. this was followed by a walk to the new tod english place in the lime light. after a few beer for me, sangria for the wife, and some fried pig ears, we stopped by eataly to pick up some soft shell crab that we plan to grill on our roof in a few hours. i love this city!!!!
Formula? Is your wife incapable of nourishing your child?
Well, given the fact that she's drunk on Sangria ...
I'm old enough to have been in Manhattan during the great white suburban flight.
Times change, attitudes change, cities change.
We happen to live at a time and a place that is desirable to live for many factors.
The one thing you can count on staying the same is CHANGE.
Some day we will buy huge apartments in buildings that use to be banks.
How many residential lofts use to be garment companies?
Tudor city windows don't face the east river because the river front was occupied by slaughter houses.
Meat packing district use to pack meat (transvestite and traditional)
Avenue C & D were once creepy haunts of the heroin addicted
Midtown Manhattan in the 70's was littered with SROs and welfare hotels such that you never walked alone or failed to look over your shoulder.
I never rode my bike to central park in the 60's and 70's because that bike would have been a donation.
Change Change Change
Change of fools
jimhones, ekartash didn't deserve that. He didn't attack anyone, or even any point of view. He said he loved the city.
>Change Change Change
Yes, and upstate New York used to be vibrant. Stevejhx' argument that Manhanhattan will become undesireable because parts of it were at one point, seems to parallel an argument that Buffalo will soon revert to its populations from the 1930s-1960s, double the population today.
falcogold, i agree about change. but it seems to me that everything you used to experience has changed for the better. and while i do not agree with how commercial some things have become, it is nice to be able to walk around most of the island without any fear of being mugged, robbed, etc..
jomhones, the reason my kid drinks formula is because i am a selfish father. i suck all the milk out of my wife's tit before he gets a chance to have any. idiot.
Jesus, that's disgusting. Haven't you guys read any parenting books? The stuff about healthier kids, better bonding, etc?
"i suck all the milk out of my wife's tit before he gets a chance to have any. idiot."
that was a good one.
maybe the most disturbing thing i've ever read in real time from a real person.
RClavi.........sounds like you're quite the dish
petri dish
badum-dum-pshh thank you kansas city, donation jars will be passed around.
badum-dum-pshh thank you kansas city, donation jars will be passed around.