What is $100K

1) What $1m condo rents for $8300?

2)Why do you think someone with even $1m in equity in an apartment would not care about $100K? (in reality, people are usually much more leveraged)

That's a price to rent ratio of 10. I think Mary's point is that when the doom and gloom predictions come true - dollar crashing to literally zero value, rampant crime due to severe unemployment, disgusting city due to severe city budget deficits - that those who buy at price to rent ratios of 10 won't care that nobody actually wants to rent in that hellhole of a city.

I know, I'm such an idiot for being optimistic about our future. It would be so much better if I accepted our pitiful fate, and planned to buy in such a terrible mess. Buying in that hypothetical market is SO much smarter than buying in today's market.

private owners generally don't understand that their inventory is months, and like an airline seat it disappears and can never generate revenue again. They tend to believe that since they still own the apartment, they should hold out for their price since the physical asset itself doesn't disappear.