No (where to) sleep till in Brooklyn

From the Daily News:

Brooklyn or bust! Thin inventory and hot demand send home prices to new record high

Soon enough, no one will be able to afford Brooklyn.

A lack of inventory coupled with strong demand sent the average price of a residential property in the borough to a record $783,296 in the second quarter, up 16.6% from the year-ago period, according to a report from Douglas Elliman.

“Prices pretty much soared,” Frank Percesepe, senior regional vice president, Brooklyn, at Corcoran Group, told the Daily News.
“The inventory crunch continues. We would have done much more business if there was more to sell.”

With Brooklyn prices rising, the borough’s affordability rep is rapidly fading.

The gap in median sales prices between Brooklyn and Manhattan has gone from $500,000 in the second quarter of 2008, before the real estate market tanked, to $335,000 today – a 33% decline, according to Douglas Elliman.

“The spread is narrowing,” Jonathan Miller, CEO of appraisal firm Miller Samuel, which compiles the Douglas Elliman report, told the Daily News.

This entry was posted in Demographics, Economics, Housing Recovery, NYC. Bookmark the permalink.

31 Responses to No (where to) sleep till in Brooklyn

  1. Juggalo4eva says:

    Vigoda > Tommy Ramone

  2. Fast Eddie says:

    Last of the Ramones. All rather young to be gone.

  3. Fast Eddie says:

    The lure to Brooklyn is the same herd mentality as the lure to Hoboken. Why? I say this facetiously.

  4. Fast Eddie says:

    The gap in median sales prices between Brooklyn and Manhattan has gone from $500,000 in the second quarter of 2008, before the real estate market tanked, to $335,000 today – a 33% decline, according to Douglas Elliman.

    If you can’t afford to buy in Manhattan, don’t even bother.

  5. Michael says:

    I think urban living blows. It’s cool when you are partying in your 20’s, but blows when raising a family. Every single person I know that has moved to an urban setting in their 20’s has followed this exact recipe when they have a kid or second kid. Everything has been redeveloped in major cities the past 15 years, making them look shiny and new. This trend will change, just like when they first made suburbs, they were shiny and new compared to the old and abused cities, so people made the jump in droves for the shiny new toy.

    It’s sounds crazy, but why does nobody bring up the fact that people will always be attracted to the “new” shiny neighborhoods, whether it is redeveloped or being developed. This has to be a strong factor in the real estate game, yet is never talked about in terms of factors that affect where people will live.

    When pa built all those new developments in the poconos, how many people flocked to those areas, and have since moved back, after the “shiny new” allure rubbed off and reality set in that it sucks to live there?

    Same thing can be said of all those new developments in Texas and the south in the past 20-30 years, people were attracted by the “shiny new” developments. What happens when those developments stop looking so shiny and new, and instead run down?

    Pt being, as long as they can afford it, people will always migrate to the shiny new areas. The flavor of the month type deal. Haughty towns do not count, they usually always remain nice, due to those towns always properly maintaining their prestige.

    Fast Eddie says:
    July 12, 2014 at 9:00 am
    The lure to Brooklyn is the same herd mentality as the lure to Hoboken. Why? I say this facetiously.

  6. Michael says:

    5- first paragraph – when they have their first or second, they leave for the suburbs.

  7. Michael says:

    This guy def makes some good points.

    “If that patent regime had existed in the 18th and 19th centuries and even through the early 20th century, the United States and England would not be rich, developed countries. They developed substantially by what we now call piracy.”

    “Chomsky made early efforts to critically analyze globalization. He summarized the process with the phrase “old wine, new bottles,” maintaining that the motive of the élites is the same as always: they seek to isolate the general population from important decision-making processes, the difference being that the centers of power are now transnational corporations and supranational banks. Chomsky argues that transnational corporate power is “developing its own governing institutions” reflective of their global reach.[27]

    According to Chomsky, a primary ploy has been the co-opting of the global economic institutions established at the end of World War II, the International Monetary Fund (IMF) and the World Bank, which have increasingly adhered to the “Washington Consensus”, requiring developing countries to adhere to limits on spending and make structural adjustments that often involve cutbacks in social and welfare programs. IMF aid and loans are normally contingent upon such reforms. Chomsky claims that the construction of global institutions and agreements such as the World Trade Organization, the General Agreement on Tariffs and Trade (GATT), the North American Free Trade Agreement (NAFTA), and the Multilateral Agreement on Investment constitute new ways of securing élite privileges while undermining democracy.[28] Chomsky believes that these austere and neoliberal measures ensure that poorer countries merely fulfill a service role by providing cheap labor, raw materials and investment opportunities for the developed world. Additionally, this means that corporations can threaten to relocate to poorer countries, and Chomsky sees this as a powerful weapon to keep workers in richer countries in line.”

  8. Michael says:

    I would have a hard time arguing against this.

    “Chomsky takes issue with the terms used in discourse on globalization, beginning with the term “globalization” itself, which he maintains refers to a corporate-sponsored economic integration rather than being a general term for things becoming international. He dislikes the term anti-globalization being used to describe what he regards as a movement for globalization of social and environmental justice. Chomsky understands what is popularly called “free trade” as a “mixture of liberalization and protection designed by the principal architects of policy in the service of their interests, which happen to be whatever they are in any particular period.”[27] In his writings, Chomsky has drawn attention to globalization resistance movements. He described Zapatista defiance of NAFTA in his essay “The Zapatista Uprising.” He also criticized the Multilateral Agreement on Investment, and reported on the activist efforts that led to its defeat. Chomsky’s voice was an important part of the critics who provided the theoretical backbone for the disparate groups who united for the demonstrations against the World Trade Organization in Seattle in November 1999.[29]”

  9. grim says:

    Heading out to LI, think I need to stop at Jordan’s for a lobster roll. Should I swing by JJ’s for a beer too?

  10. Juggalo4eva says:

    The chance to hang out in a flood-damaged split on LI drinking beer with a bunch of guys in beater shirts is too good to pass up.

  11. Fast Eddie says:

    Michael,

    One of the rare times I agree with you. :) The mere fact that a potential buyer interacts with the selling side indicates that they’re interested in a particular area. They’re already half way there; it just takes a smooth-talking house guide to uncover their “weakness” and close the deal.

    More times than not, the inexperienced buyer will have some sort of regret and realize that the area isn’t what they expected or didn’t consider a long term strategy. They bought because more than one convinced them they had to be there. I chuckle when I hear sales are hot in Brooklyn or Hoboken or the gold coast. What an elaborate marketing scheme!

    Market the most “lucrative” money areas and trade houses using muppets as props. When it comes time to bail, one muppet wins while the other loses but there’s always collateral damage amidst someone’s financial victory.

  12. The Original NJ ExPat says:

    Michael – never even a week of junior college, right?

  13. The Original NJ ExPat says:

    Clot – even the vernacular is getting lost in the sauce. Someone my wife knows said her teenage son told her he needs some “white beater” shirts. Patently incorrect, but maybe not far from the truth?

    The chance to hang out in a flood-damaged split on LI drinking beer with a bunch of guys in beater shirts is too good to pass up.

  14. Juggalo4eva says:

    Only vernacular that matters is the kind that references kill shots.

  15. Juggalo4eva says:

    The Atlantic City casino industry implosion continues. Following the second, and final, bankruptcy of AC’s “state of the art” Revel Casino a month ago, as well as the shuttering of Atlantic Club hotel Casino and the Showboat hotel casino, the grim corporate reaper has come for one of the most prominent boardwalk casinos of all: Trump Plaza.

    http://www.zerohedge.com/news/2014-07-12/trump-plaza-close-september-atlantic-city-implosion-claims-fourth-casino

  16. grim says:

    vigoda > ac

  17. Michael says:

    Why? Because I put some of chomsky’s theories up? I don’t know much about him, but it seems pretty smart to me, and helps me to take a different perspective when analyzing society.

    Or because I said people are attracted to shiny new things? Is it not the truth? Yes, the shiny new doesn’t cause the initial demand, that led to the initial redevelopment or development, but the shiny new factor def is a major drive of demand after initial redevelopment or development. That shiny new factor attracts hordes of people. All it takes is the first buyers to start spreading the word about this shiny new place, and the rest follow like lemmings off a cliff.

    Middle class and lower class towns go through a cycle. They go from great to eventually on life support. Some have surgery performed ( redevelopment) or some are left for dead (become ghettos). This is what happens when the neighborhood gets old and has not been maintained. This is why haughty towns are usually not affected, they maintain their homes and neighborhoods. Am I wrong?

    The Original NJ ExPat says:
    July 12, 2014 at 5:49 pm
    Michael – never even a week of junior college, right?

  18. Comrade Nom Deplume, Guardian of the Realm says:

    One thing I plan to do is lobby my daughters’ team director and implore them not to enter competitions in AC. It was sketchy when her NJ team went years ago and it’s going to be more of an open sewer now than it ever was.

  19. Comrade Nom Deplume, Guardian of the Realm says:

    This will end well.

    http://m.nationalreview.com/corner/382564/federal-government-sends-hundreds-unaccompanied-alien-children-multiple-locations

    Another report says that buses with unmarked escorts are headed to Detroit. You have to know some are coming here. Now that the dumping is going to blue cities, I see this as a tactic to force Congress to work together. Well played, Mr. President.

  20. Comrade Nom Deplume, Guardian of the Realm says:

    [21] redux.

    I can easily foresee the response to the immigration crisis getting clot-like at this rate. Someone takes out the lead escort vehicle with an IED and things get interesting.

  21. Juggalo4eva says:

    Abbott Districts and your wallet: perfect together.

    “Newark Public Schools spent more than $330,000 on take-out food over a 15-month period ending in May, according to an NBC New York report.

    NBC New York’s I-Team discovered the district spent an average of $22,000 per month on food from places like Sandwiches Unlimited, SuzyQue’s BBQ and King’s Family Restaurant and Catering.

    Vanessa Rodriguez, a spokeswoman for the district, said the food expenses were justified. She said nearly all of the food went to school-related events geared toward encouraging parent involvement and recognizing student achievements, according to the report.

    Rodriguez also pointed to union rules that require food service to be available for teachers working late as another reason for the high amount of purchases, the report said.

    Newark schools, which have been under the state’s control since 1995, have seen several student protests in recent years against budget cuts.

    More than 500 Newark students rallied in April to call for local control of the schools. A similar protest was held last year outside the home of Superintendent Cami Anderson, who was recently reappointed by Gov. Chris Christie to remain the city’s schools chief.”

    http://newarknj.patch.com/groups/schools/p/newark-schools-spend-22k-per-month-on-takeout-food-report-says

  22. Juggalo4eva says:

    Why is gitmo our only real prison colony? We need to re-examine the utility of having large, remote places where we can ship people and leave them.

  23. Fast Eddie says:

    Oh, by the way, I see that two federal judges have ordered explanations into lost IRS emails. Nothing to see here, obviously another reach by the vast right wing extremists.

  24. grim says:

    25 – I thought that was Atlantic City

  25. Juggalo4eva says:

    Just circle AC with razor wire, and set packs of lions and tigers loose.

  26. Juggalo4eva says:

    Feel bad for Messi. Best team won, though.

  27. Comrade Nom Deplume, Guardian of the Realm says:

    I don’t feel anything for Messi. Glad it was Germany.

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