Comments on: Leaving the empty nest http://njrereport.com/index.php/2006/11/13/leaving-the-empty-nest/ Real Estate, Economics, and Politics Thu, 09 Feb 2012 04:04:09 +0000 hourly 1 http://wordpress.org/?v=3.0 By: FirstTimeBuyer http://njrereport.com/index.php/2006/11/13/leaving-the-empty-nest/#comment-45362 FirstTimeBuyer Tue, 14 Nov 2006 18:40:42 +0000 http://njrereport.com/index.php/2006/11/13/leaving-the-empty-nest/#comment-45362 Richard, I don't agree with the current rent controls, but you have to understand that you won't find any low-wage workers that are necessary to run a city like NY unless you can provide them them with rent controls or another sort of subsidy. Richard, I don’t agree with the current rent controls, but you have to understand that you won’t find any low-wage workers that are necessary to run a city like NY unless you can provide them them with rent controls or another sort of subsidy.

]]> By: Bubble Disciple http://njrereport.com/index.php/2006/11/13/leaving-the-empty-nest/#comment-45314 Bubble Disciple Tue, 14 Nov 2006 16:29:46 +0000 http://njrereport.com/index.php/2006/11/13/leaving-the-empty-nest/#comment-45314 "rent controlled apartments is price fixing and should be illegal. if you can’t afford to live in the city you shouldn’t live there so i’m not buying these sob stories. every one you hear there are 1000 others who don’t have it. go where you can afford." Some of us might not like it. But we should consider the origin of these regulations to understand why we have it. Apparently, retaining the middle class was considered important. The problem is that in a free market, building owners will only provide high priced housing: McMansions in the suburbs and luxury apartments in the city. So the middle class moves away, causing basic services to get more expensive (local inflation). This puts pressure on wages to attractand retain the higher paid people. Eventually, companies downsize or move their jobs out of state (or overseas). This leads to an oversupply of luxury housing, and those who remain (now paid less) still can't find cheaper housing, so the process accelerates. Eventually, this luxury housing becomes affordable housing, or in extreme cases, low income housing, but only after much volatility in the economy. I think the point of rent stabilization is to have economic stability. Someone once said that an economy is basically a man-made concept that must serve the people. Unfortunately, we've been trained to feel like we need to serve the economy. “rent controlled apartments is price fixing and should be illegal. if you can’t afford to live in the city you shouldn’t live there so i’m not buying these sob stories. every one you hear there are 1000 others who don’t have it. go where you can afford.”

Some of us might not like it. But we should consider the origin of these regulations to understand why we have it. Apparently, retaining the middle class was considered important.

The problem is that in a free market, building owners will only provide high priced housing: McMansions in the suburbs and luxury apartments in the city.

So the middle class moves away, causing basic services to get more expensive (local inflation). This puts pressure on wages to attractand retain the higher paid people. Eventually, companies downsize or move their jobs out of state (or overseas). This leads to an oversupply of luxury housing, and those who remain (now paid less) still can’t find cheaper housing, so the process accelerates.

Eventually, this luxury housing becomes affordable housing, or in extreme cases, low income housing, but only after much volatility in the economy.

I think the point of rent stabilization is to have economic stability. Someone once said that an economy is basically a man-made concept that must serve the people. Unfortunately, we’ve been trained to feel like we need to serve the economy.

]]> By: jcer http://njrereport.com/index.php/2006/11/13/leaving-the-empty-nest/#comment-45297 jcer Tue, 14 Nov 2006 15:22:32 +0000 http://njrereport.com/index.php/2006/11/13/leaving-the-empty-nest/#comment-45297 The standard rent leveling ordinences are fair! If you live someplace and are a tenant, your costs should remain fixed to inflation. If improvements need to be made or energy prices rise or something, file a financial greivence with the rent leveling board and get the rent raised to offset the incresed cost of operation. As long as the rent control laws are sweeping and inclusive it makes perfect sense. The standard rent leveling ordinences are fair! If you live someplace and are a tenant, your costs should remain fixed to inflation. If improvements need to be made or energy prices rise or something, file a financial greivence with the rent leveling board and get the rent raised to offset the incresed cost of operation. As long as the rent control laws are sweeping and inclusive it makes perfect sense.

]]> By: bergenbubbleburst http://njrereport.com/index.php/2006/11/13/leaving-the-empty-nest/#comment-45277 bergenbubbleburst Tue, 14 Nov 2006 14:04:59 +0000 http://njrereport.com/index.php/2006/11/13/leaving-the-empty-nest/#comment-45277 Off topic here, but I am really expecting to see house prices at around 2002 levels by summer in the so called better towns in Bergen county. i am already seeing asking prices in quite a few instances back to early 04, late 03 levels, and inventory continues to grow, plus all the additional inventory that will come on the market in Spring. Any how this is what i think we will see, any body else have any thoughts? Off topic here, but I am really expecting to see house prices at around 2002 levels by summer in the so called better towns in Bergen county. i am already seeing asking prices in quite a few instances back to early 04, late 03 levels, and inventory continues to grow, plus all the additional inventory that will come on the market in Spring.

Any how this is what i think we will see, any body else have any thoughts?

]]> By: MR X http://njrereport.com/index.php/2006/11/13/leaving-the-empty-nest/#comment-45186 MR X Tue, 14 Nov 2006 05:11:18 +0000 http://njrereport.com/index.php/2006/11/13/leaving-the-empty-nest/#comment-45186 The president of the Shore Builder's Association has an op ed in the The Tri-Town News (http://tritown.gmnews.com/news/2006/1109/Editorials/071.html) about what a fine time to buy a home this is. Under the current circumstances I am not in a position to respond, but if someone wanted to craft a response (I'm talking to you Mr. Bednar, Chicago, BC Bob, SAS, or if you're feeling thoughtful at the moment, Booyaa Bob) I think it would be worthwhile. A good starting point might be that he makes absolutely no effort to account for inflation. He's also cherry picked his starting years, although accounting for inflation, I would imagine his condo hasn't gone up all that much anyway. The president of the Shore Builder’s Association has an op ed in the The Tri-Town News (http://tritown.gmnews.com/news/2006/1109/Editorials/071.html) about what a fine time to buy a home this is. Under the current circumstances I am not in a position to respond, but if someone wanted to craft a response (I’m talking to you Mr. Bednar, Chicago, BC Bob, SAS, or if you’re feeling thoughtful at the moment, Booyaa Bob) I think it would be worthwhile.

A good starting point might be that he makes absolutely no effort to account for inflation. He’s also cherry picked his starting years, although accounting for inflation, I would imagine his condo hasn’t gone up all that much anyway.

]]> By: Richard http://njrereport.com/index.php/2006/11/13/leaving-the-empty-nest/#comment-45182 Richard Tue, 14 Nov 2006 04:38:40 +0000 http://njrereport.com/index.php/2006/11/13/leaving-the-empty-nest/#comment-45182 rent controlled apartments is price fixing and should be illegal. if you can't afford to live in the city you shouldn't live there so i'm not buying these sob stories. every one you hear there are 1000 others who don't have it. go where you can afford. rent controlled apartments is price fixing and should be illegal. if you can’t afford to live in the city you shouldn’t live there so i’m not buying these sob stories. every one you hear there are 1000 others who don’t have it. go where you can afford.

]]> By: RentinginNJ http://njrereport.com/index.php/2006/11/13/leaving-the-empty-nest/#comment-45177 RentinginNJ Tue, 14 Nov 2006 04:06:25 +0000 http://njrereport.com/index.php/2006/11/13/leaving-the-empty-nest/#comment-45177 <i>where was Time last summer? now I remember. reporting on the glorious housing boom…</i> Skep-tic Here is where Time was last summer (June 13, 2005 to be exact) http://www.time.com/time/covers/0,16641,20050613,00.html where was Time last summer? now I remember. reporting on the glorious housing boom…

Skep-tic
Here is where Time was last summer (June 13, 2005 to be exact)

http://www.time.com/time/covers/0,16641,20050613,00.html

]]> By: chicagofinance http://njrereport.com/index.php/2006/11/13/leaving-the-empty-nest/#comment-45175 chicagofinance Tue, 14 Nov 2006 04:00:24 +0000 http://njrereport.com/index.php/2006/11/13/leaving-the-empty-nest/#comment-45175 "Can I have another glass of Kool Aid with my tamiflu please?" Hey....Roche hung in there while all the U.S. based pharma companies got slammed when the Dems took over last week. “Can I have another glass of Kool Aid with my tamiflu please?”

Hey….Roche hung in there while all the U.S. based pharma companies got slammed when the Dems took over last week.

]]> By: profuscious http://njrereport.com/index.php/2006/11/13/leaving-the-empty-nest/#comment-45164 profuscious Tue, 14 Nov 2006 02:48:20 +0000 http://njrereport.com/index.php/2006/11/13/leaving-the-empty-nest/#comment-45164 Empty nests....bankruptcy....bubble....manhattanization....professionalization...goodbye to NY &NJ Can I have another glass of Kool Aid with my tamiflu please? Empty nests….bankruptcy….bubble….manhattanization….professionalization…goodbye to NY &NJ

Can I have another glass of Kool Aid with my tamiflu please?

]]> By: SAS http://njrereport.com/index.php/2006/11/13/leaving-the-empty-nest/#comment-45155 SAS Tue, 14 Nov 2006 02:32:46 +0000 http://njrereport.com/index.php/2006/11/13/leaving-the-empty-nest/#comment-45155 Kill GSE programs such as Fannie Mae and Freddie Mac. SAS Kill GSE programs such as Fannie Mae and Freddie Mac.

SAS

]]> By: SAS http://njrereport.com/index.php/2006/11/13/leaving-the-empty-nest/#comment-45154 SAS Tue, 14 Nov 2006 02:31:53 +0000 http://njrereport.com/index.php/2006/11/13/leaving-the-empty-nest/#comment-45154 "New York is a cosmopolitan place where many people want to live, but not many people can afford to live," said William H. Frey, a demographer at the Brookings Institution. "We're seeing the professionalization of Manhattan, and, increasingly, the Manhattanization of Brooklyn and Queens, and even a little bit of the Bronx." As soon as a recession hits this area, especially in the financial sector. Say goodbye to NY & NJ. Think this area is bubble proof....think again.... SAS “New York is a cosmopolitan place where many people want to live, but not many people can afford to live,” said William H. Frey, a demographer at the Brookings Institution. “We’re seeing the professionalization of Manhattan, and, increasingly, the Manhattanization of Brooklyn and Queens, and even a little bit of the Bronx.”

As soon as a recession hits this area, especially in the financial sector. Say goodbye to NY & NJ. Think this area is bubble proof….think again….

SAS

]]> By: Pat http://njrereport.com/index.php/2006/11/13/leaving-the-empty-nest/#comment-45149 Pat Tue, 14 Nov 2006 02:17:25 +0000 http://njrereport.com/index.php/2006/11/13/leaving-the-empty-nest/#comment-45149 http://www.washingtonpost.com/wp-dyn/content/article/2006/11/11/AR2006111100857.html "Thousands Fear Loss of Rent Controls in Historic Apartments.. ...has ignited a citywide debate on the loss of middle-income housing -- and people." http://www.washingtonpost.com/wp-dyn/content/article/2006/11/11/AR2006111100857.html

“Thousands Fear Loss of Rent Controls in Historic Apartments..

…has ignited a citywide debate on the loss of middle-income housing — and people.”

]]> By: Chip http://njrereport.com/index.php/2006/11/13/leaving-the-empty-nest/#comment-45144 Chip Tue, 14 Nov 2006 00:06:54 +0000 http://njrereport.com/index.php/2006/11/13/leaving-the-empty-nest/#comment-45144 Whoa, that is the wishy-washiest MSM piece I recall reading, relative to the bubble and bust. Whoa, that is the wishy-washiest MSM piece I recall reading, relative to the bubble and bust.

]]> By: skep-tic http://njrereport.com/index.php/2006/11/13/leaving-the-empty-nest/#comment-45138 skep-tic Mon, 13 Nov 2006 23:25:45 +0000 http://njrereport.com/index.php/2006/11/13/leaving-the-empty-nest/#comment-45138 Report: Corporate Bankruptcies Set to Rise New York Lawyer November 13, 2006 "Corporate bankruptcy filings, subdued by the high availability of credit in recent years, should hit courts in a wave within the next six to 18 months, according to a report released Wednesday. "The survey said 70.7 percent of 90 respondents expect 'the next big wave of restructurings' is on its way, according to an analysis by the American Bankruptcy Institute and Dow Jones' Daily Bankruptcy Review. "The industry seen as most vulnerable was real estate and construction, with weakness also in sectors such as airlines, manufacturing, transportation and consumer products. Eighty percent of respondents said the real estate industry was 'very' or 'extremely' vulnerable. Two-thirds of respondents named retail as also being in danger." Report: Corporate Bankruptcies Set to Rise

New York Lawyer
November 13, 2006

“Corporate bankruptcy filings, subdued by the high availability of credit in recent years, should hit courts in a wave within the next six to 18 months, according to a report released Wednesday.

“The survey said 70.7 percent of 90 respondents expect ‘the next big wave of restructurings’ is on its way, according to an analysis by the American Bankruptcy Institute and Dow Jones’ Daily Bankruptcy Review.

“The industry seen as most vulnerable was real estate and construction, with weakness also in sectors such as airlines, manufacturing, transportation and consumer products. Eighty percent of respondents said the real estate industry was ‘very’ or ‘extremely’ vulnerable. Two-thirds of respondents named retail as also being in danger.”

]]> By: skep-tic http://njrereport.com/index.php/2006/11/13/leaving-the-empty-nest/#comment-45132 skep-tic Mon, 13 Nov 2006 22:54:12 +0000 http://njrereport.com/index.php/2006/11/13/leaving-the-empty-nest/#comment-45132 LOL... mass media struggling to understand financial reality. where was Time last summer? now I remember. reporting on the glorious housing boom... LOL… mass media struggling to understand financial reality.

where was Time last summer? now I remember. reporting on the glorious housing boom…

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