From Yahoo Finance:

Rich millennials are spending millions to knock down beautiful houses in the NYC suburbs to build mansions as housing wars rage on

Just across the Hudson River from New York City, sit suburban communities like Ridgewood, New Jersey which are dotted with beautiful century-old Victorian and Tudor-style homes. Only many of these historic adobes won’t be around too much longer: Rich millennials are tearing them down in favor of bigger, modern homes.

Priscilla Reynolds, a New Jersey-based sales associate, represented a seller that sold their home in Ridgewood for $2 million to a millennial couple from New York City. She listed the center hall colonial home in March of last year and wasn’t all that shocked when she found out the couple wanted to tear it down. The couple, likely both in their mid-30s, Reynolds guessed, have since knocked it down and are in the process of rebuilding. They’ve even run into problems concerning lot coverage, likely because they wanted to build an enormous home in place of what was previously a property under 4,000 square feet, Reynolds told Fortune.

Christina Gibbons, a real estate broker with a team that’s based in Ridgewood, typically serves Bergen County, which is just outside of New York City. Following the pandemic, she noticed that buyers coming from New York City had more to spend, and they wanted to live in these so-called desirable locations with easy commutes. Sometimes that means buying a home just to knock it down. But it isn’t always going to cost $2 million for the original property purchase, instead it’s likely going to be close to a million dollars. That’s because the value of property and land has gone up, largely because of how tight inventory is and the lack of vacant land in these markets. Gibbons said a half acre of land on the west side of Ridgewood “is going to be close to a million dollars easily, no matter what’s on it, so people are having to spend more to tear them down.” Gibbons represented a buyer that closed on a property on West Ridgewood Avenue around two months ago for $900,000, and after tearing it down they’re building a more than 4,000 square-foot home, which is twice the size of the original “very old victorian” property that sat on the lot, Gibbons said. She added that once their home is done, it’ll likely be valued around $3 million.

On another occasion, Gibbons worked with a couple in their early 30s with kids that moved from New York City. They purchased a colonial-style home in Ridgewood, in the summer of 2020 for close to $1 million with “every intention of tearing it down,” Gibbons said. The couple even rented for around a year in the same neighborhood while their home was being built, so their kids could attend school and they could oversee the project. The couple just moved into their finished, very modern home last summer—in what Gibbons called “your very typical New York story.”

This entry was posted in Demographics, Housing Bubble, New Jersey Real Estate, NYC. Bookmark the permalink.

43 Responses to Yep…

  1. Phoenix says:

    They’ve even run into problems concerning lot coverage, likely because they wanted to build an enormous home in place of what was previously a property under 4,000 square feet, Reynolds told Fortune.

    Not surprising. It’s like Rome all over again.

  2. Hold my beer says:

    First first

  3. The Great Pumpkin says:

    Just remember…5 years ago the experts said the burbs were dead and millennials would rent in the city for life. Ahh, I miss those days…laughing at how dumb people could be.

    Goes to show you. When no one wants an asset, buy that chit up! Only the few can hold their nose and pull the trigger.

    Remember laughing at me when I said these 600- 700k houses would be a million 10 years ago.

  4. Phoenix says:

    So what happened to Lt Melody Burroughs? Why did she order the officer to not give him a ticket?
    A suspension? Guy should lose his job. She should be suspended and demoted back to patrol.

  5. NJCoast says:

    Tear downs have been going on at the shore since the ‘70’s. Some towns have passed strict historical ordinances. There’s been some amazing refurbishments of 100+ year old seashore colonial homes around here.

  6. The Great Pumpkin says:


    As of the fourth quarter of the year 2022, Baillie Gifford & Co. increased its stake in Ginkgo Bioworks Holdings, Inc. by 19.6%, according to their latest Form 13F filing with the Securities & Exchange Commission.Apr 5, 2023

    Baillie Gifford & Co.’s move to increase their stake in Ginkgo Bioworks Holdings can be seen as a positive outlook both for the company and the biotechnology industry .

    with significant investments such as this one made by Baillie Gifford & Co., it may signal that there will continue to be optimism towards companies such as Ginkgo Bioworks since they are constantly establishing breakthroughs beneficial to the medical field and the environment.”

  7. Phoenix says:

    (Texas Accent) Dang, Hell.

    George Carlin is right again. America imploding one day at a time. Sucks for the poor trauma teams that have to keep power infusing blood day and night on a weekend for crappy pay, no pensions, no weekends off. At least the cops get lifetime pensions and healthcare.

    Eight – including children – are killed in Texas mall massacre

  8. Phoenix says:

    Let’s have some positive cheer after reading that horror story. For the other part of America, you guys who can afford it, here is your chance to have a great day playing golf- you can even have a foursome with her:

    Maxim’s ‘Sexiest Woman Alive’ Paige Spiranac Hosting Alpine Country Club Charity Event

    Playing golf with the sexiest woman alive won’t come cheap. A celebrity golf foursome package costs $13,500

    May 8 at Alpine Country Club in Demarest.

    Get yourself a fancy accountant and you can probably write off the entire outing. I’ll be your caddy for the day.

  9. Phoenix says:


    Soon to become ExExEx

    When your state needs to pony up this level of cash. Even if you spread it out over years it’s a big chunk of change for taxpayers to pay:

    California panel approves reparations proposal of up to $1.2 million EACH for black residents… but activists demand more than $200 million at heated public meeting

  10. Phoenix says:

    Guess then you will be Triple X, and, to economize letters, XXX

  11. The Great Pumpkin says:

    Promise? This would have been found unconstitutional. Under the constitution, you can’t take someone’s property and give it to someone else. People need to stop with this. The idea was created out of a civil war in which some of the victors had a hard on to destroy the land owning rich of the south. At the end of the day, constitution doesn’t support this.

    “Reverend Tony Pierce aired his frustration and pointed to the country’s ‘broken promise’ to offer 40 acres and a mule to newly freed slaves.

    He said: ‘You know that the numbers should be equivocal to what an acre was back then. We were given 40, OK? We were given 40 acres.

    ‘You know what that number is. You keep trying to talk about now, yet you research back to slavery and you say nothing about slavery, nothing.

    ‘So, the equivocal number from the 1860s for 40 acres to today is $200 million for each and every African-American.’”

  12. The Great Pumpkin says:

    And these individuals are insane…200 million? Who is worth 200 million? Less than 1% of the population. How do you justify this? Even 1.2 million….how many individuals are even worth 1.2 million after a lifetime of work.

  13. leftwing says:

    Pumps, I’m with others that you should be providing attribution rather than just puking things up…as to the post BG and ARK are fucked unless they can bring a WHOLE bunch of newbies into DNA…collectively owning more than one-quarter of a company is a major issue and violates basic investing principles…you simply can’t sell that number of shares without absolutely decimating the shares…as such they collectively have one primary interest, above all others, which is to get more new people into this stock. In numbers. Anything they say is entirely suspect because without doing so they will never be able to exit their investment.

    Whichever Twidiot you are quoting has no comprehension of capital markets.

  14. leftwing says:

    Top of real estate market, last time, signposts in my former town…Person bought a knockdown at $900k, nice larger than average lot on a gentle turn on a little travelled road, then promptly followed with a $1.1m knockdown on a more private cul-de-sac, before exiting the first….and, not ironically, a couple closed on two houses in the same neighborhood on the same day, each north of $800k, one to live in (temporarily) while they knocked down and redeveloped the other…

  15. ExEx says:

    8:05 it would be pretty nuts!

  16. The Great Pumpkin says:


    What does that say about BG’s investment?

    1. They know they are early.

    2. They bought up a huge percentage of the company knowing that when it is successful, it will be easy to liquidate. They aren’t planning on selling now. Accumulation period for them.

    3. They view this as next Tesla/Amazon investment. They have nailed most of their disruptive calls past 30 years like Tesla and Amazon.

    4. Their ownership percentage says we are early to the show. They would never hold such a high percentage if market cap couldn’t grow a 100 times.

  17. leftwing says:

    Lib, looked at AMPH a bit more…unfortunately for some basic questions that would better provide focus for me I can’t approach my go-to guys and don’t have time to dig deeply, eg. purchase multiples. Anyway….

    Trust you implicitly on your fundamental analysis of the existing company. Where we are going to differ is on corporate and acquisition issues…

    Hard for me to get over the Exec suite setup. Regardless of debate around ‘need’ for management fact is that vesting two people with the top five Exec titles including CoB is just bad governance. Before even accounting for their age. And bad governance decisions are like cockroaches, never just the one you see.

    Acquisition, Price. Looks richly priced. They are taking down at least $500m of debt, at SOFR, which will have at least a seven handle. That’s at least $35m of annual interest expense. At their own EBITDA margin they basically just cover the interest expense from the contribution of the target, ie. for any return they need to improve the product above and beyond current operations. Never a good entrypoint for an acquisition. I don’t see where they’re getting the return other than their own improvements to the product line, although will note management says 0.25-0.35 accretive (annualized) in 2023.

    Acquisition, Leverage. You noted low debt, yes now, but after the acquisition they’ll be at least 3x levered on EBITDA (up from 0.5x). While not flashing red it’s a meaningful change.

    Acquisition, Significance. The acquisition is transformative for the company, from expanding overseas to the leverage. May not be ‘bet the farm’ but it is of enough import that should the acquisition not work out they will have real issues.

    The Fine Print. Give a read of the Critical Audit Matters in the K (starts on p 98, link below). With all agreement that accountants are going to be conservative they do highlight the GPO/PBM risk inherent in these businesses and how margins can turn on a dime. Would like to see the sales trends for the two competitors’ products. Separately, on the accretion analysis of 0.25-0.30 annualized management gives a pretty big disclaimer that they can’t yet reconcile to GAAP.

    Bottom line for me, and likely why the market puked the share price on the acquisition announcement…an insular management team making a transformative acquisition with leverage and without deep experience in either situation (transformative buys or running a levered company) who also punts forward guidance to closing of the transaction in 3Q…therefore no reason to hold/buy now until better clarity.

    I’ll throw this on a watchlist but with the above profile I’ll wait…let the selling in the shares abate, let new news and more particulars flow from the company. Bookmark the dates for whichever major HC conferences they may be attending, look for news out of them. That would be the green light to buy for me (Jeffries, who advised them, has a major conference in the Fall IIRC)…Also, FYI, if there were a liquid option chain this type of situation is tailor made for writing a bunch of puts 20% down to collect big premium or take the shares at that level if they hit it.

    TY on the look.

    10K link, critical audit matters begin p98. Not in and of themselves a concern, just underscore that material margin shifts can occur for this (soon to be) levered company.

  18. leftwing says:

    Pumps, good luck on DNA. Your statements above are simply not factually correct. Again, anyone telling otherwise literally just has no actual industry experience.

    “They would never hold such a high percentage if market cap couldn’t grow a 100 times…”

    This is downright comical…first even the most obtuse people (let alone professionals) don’t invest for “100 baggers”….second to get there would be a $250B market cap, making them one of the largest companies in America, and would imply about $60B of revenue…on a company struggling to go from $100m to $200m currently.

    I’m out on this topic…truthfully, GL.

  19. The Great Pumpkin says:

    Seeing more and more of this. If indexes weren’t holding such a high percentage, apple stock would be f’ed right now. So much passive money flows into it without a thought. Plus, all the scared money (like buffett) hiding in apple. If there is a major correction to s&p, it’s prob because of a few stocks like apple. Other stocks in the index have been beaten.

    “If you own an S&P 500 index fund or ETF, you are an Apple shareholder. And thankfully, Apple beat earnings expectations and announced a $90 billion buyback.

    Despite only low single-digit earnings growth and a record-high P/E multiple of 29X, the stock went up an impressive 4.7% last Friday. I don’t mind as a 10+-year shareholder. But I’m not putting new capital to work in Apple at this point.

    Instead, I’m looking to diversify as Apple now accounts for ~7.4% of the S&P 500. If you add Microsoft, these two companies alone account for about 14% of the S&P 500.”

  20. The Great Pumpkin says:


    Thanks. I truly believe in it.

  21. 3b says:

    Phoenix: I know Doctors don’t get pensions, but I thought Nurses did.

  22. The Great Pumpkin says:

    BG doesn’t f’k around. That’s all I know. They completely understand that the majority of stocks are useless.

    “Baillie Gifford’s approach to Tesla reflects the firm’s investment philosophy: buy “extraordinary” companies that can offer tremendous growth, keep the stock for five to 10 years and ignore daily market moves and quarterly earnings.

    Founded in 1908, the firm made growth investing the centerpiece of its strategy for decades. It has sharpened its focus over the past few years, said Charles Plowden, joint senior partner, after reviewing research that showed that between 1926 and 2016, slightly more than 4% of U.S. stocks accounted for all the market’s gains.

    That spurred the firm to seek out only top-tier companies, Mr. Plowden said, a conviction which was strengthened after further research showed just 1.3% of global companies accounted for the market’s gains between 1990 and 2018.

    “We can ignore large swaths of the [investing] universe,” Mr. Plowden said, adding that the firm looks at the potential of a company rather than current profits. There is no guarantee the companies will succeed, he said.

    Other investments include Chinese internet giants Alibaba Group Holding Ltd. and Tencent Holdings Ltd.;Facebook Inc.; Inc.;Spotify Technology SA and a crop of unlisted firms including Airbnb Inc., eyeglasses seller Warby Parker Inc. and Bytedance Inc., which operates video-sharing app TikTok.

    Baillie Gifford expanded its efforts investing in private companies in 2014 and spun out a dedicated team in 2017. The goal was to get to know companies before they went public and secure access to firms that are staying private longer, said Peter Singlehurst, head of unlisted equities. Nearly $4 billion of clients’ money is invested in private companies, he said.

    The company said it leverages longtime positions to get access to up-and-comers. Its relationship with Alibaba, for example, helped the firm snag an investment in Ant Financial Services Group, now the world’s most valuable financial-technology startup.

    Not all flashy technology companies have appealed. Baillie Gifford didn’t invest in Uber Technologies Inc. in 2014 due to what it saw as an aggressive culture, Mr. Singlehurst said. An Uber spokesman declined to comment. Facial-recognition companies have also brought pause due to public concerns over how governments might use the technology, Mr. Singlehurst said.

    Baillie Gifford is structured as a partnership, with 43 partners who sell their equity for the same price at which they bought in to the next generation once they leave. Employees say that has fostered discretion and a lack of external pressure.

    So determined is the company to stay away from what it views as an undue focus on market short-termism that it tries to locate its offices away from cities’ main financial districts, a spokeswoman said.

    Ms. Flood said the emphasis remains on encouraging companies to invest in research and development and capital expenditure, even if profits falter in the near term.

    Alibaba noticed Scottish Mortgage hadn’t sold shares at or since the tech giant’s initial public offering, said Ms. Flood.

    “We are not looking at what markets think of the trade war,” she added.”

  23. The Great Pumpkin says:

    Real Estate Heating Up

    I’m now clearly seeing signs of the real estate market heating up here in San Francisco. More quality listings are showing up and being bid up quickly.

    Here’s an example of an old home that needs a remodel to the tune of ~$1 million. It was listed for $4,790,000, went into contract in ten days, and closed eight days later for $860,000 over (18%). It is right next to a very busy street.

    If you read the media, the San Francisco real estate market is supposed to be a weak. But on the ground, the reality is very different. Maybe Apple trading close to an all-time high, Nvidia trading close to an all-time high, Meta up 100%+ YTD, and the AI mania have something to do with it.

    Hence, I have some consternation the real estate buying window may shut sooner than expected. Instead of an eight-month window, maybe it shrinks to four months for buyers to get the best deals. Because once there is a sense of an asset class turning, the pile-on is quick and furious.

    Just look at how quickly many regional banks rebounded on Friday after 20% – 40% collapses on Thursday.

  24. Phoenix says:

    Phoenix: I know Doctors don’t get pensions, but I thought Nurses did.

    Very few. A handful of old timers. And maybe some at state run facilities. And more in NY than NJ.

    And soon the govt is going to charge 23 dollars for “congestion pricing” to those that visit NYC.

    Greed is rampant. Went to pick up a large box of cereal. Tilted it’s axis, it was like a effing picture frame. Wheat, oats, and corn are the cheapest staples on the planet and you want 5 bucks for what was in that box?

    High housing, high rent, high healthcare, high food prices. Wages basically stagnant compared to cost of living. Social Security, Medicare going bankrupt. Prices of medicine astronomical. But I can buy a new carb kit for a tiller for 12 bucks from China shipped, fuel lines and all? Then you tell me I should hate them?

    Wtf, they are the only ones trying to help me. It’s the stinking Americans that are bankrupting their own.

  25. MakeMoMoney OnSunday says:


    The pandemic changed things dramatically.

    Up to the 90’s or so. Most hospitals around here had pension. All of them dropped them for 403b. The worse place to be was in any catholic hospital, because their pensions were religious entities and exempt from Pension Benefit Guaranty Corporation protection and a lot of people lost a big chunk of their retirement when those catholic hospitals failed. Generally doctors practiced as a professional corporation and they created their own benefit packages.

    All the big health systems made their doctors employees by buying Doctors’ practices or just outright pushing them out. There is a story in the Record about a Hackensack lawsuit with a trio group of trauma surgeons working under their own practice as contractors that did the hardworking of upgrading the hospital from a level 2 to a level 1 trauma center in September 2021 and 3 months later they were pushed out and replaced with own employee surgeons.

    So doctors gravy train has been over for a few years. The combination of high student debt for US trained ones, lots of foreign trained with no debt that will take anything offered to start out, and the nightmare of dealing with insurance claims has destroyed the physician as a small business person. He’s now a w-2 employee and because can’t deduct all those things they use too.

    Paradoxically the pandemic has given immense power to nurses that are flexible and treat themselves as a skilled business to work high paying contracts which can be w-2 or 1099 and they are able to deduct expenses and create their own benefits package.

  26. Phoenix says:

    Texas is losing it’s collective you know what. Now it’s Land Rover attacks:

    SUV ‘intentionally plows into people outside a Brownsville migrant shelter in Texas – killing at least seven
    Police have arrested the driver following the horrific crash on Saturday morning
    The Land Rover SUV is believed to have ‘intentionally’ plowed into pedestrians outside the Ozanam Center in Texas at 8.20am on Saturday

  27. Phoenix says:

    Except the government, NJ State for one, is locking down and forbidding nurses to do exactly what you have proposed-which is anti-capiatalist.

    Paradoxically the pandemic has given immense power to nurses that are flexible and treat themselves as a skilled business to work high paying contracts which can be w-2 or 1099 and they are able to deduct expenses and create their own benefits package.

  28. Phoenix says:

    Corporate takes over the vets, pet care, and pet food as well, not just in America, but Europe as well:

    ‘Welcome to Hell’
    Mars, Inc., is best known for making chocolate bars. But it also owns the most pet hospitals in the U.S., and workers say the conditions are toxic.

    Last week, Mars, the company best known for brands like Snickers, Skittles, and Wrigley’s gum, purchased AniCura, a network of 200 animal hospitals spanning seven European countries.

  29. 3b says:

    Phoenix: Thanks for the information. I am very surprised Nurses on a while don’t have pensions. As for your other points, I can’t really argue with any of them. Thanks Boomer!

  30. 3b says:

    Make: I don’t recall the hospitals going under that you mention. Also, did not know that those that had pensions lost them, because of the religious exemption. Unbelievable. From a benefit perspective at least public sector truly are well taken care of.

  31. 3b says:

    Phoenix: Candy and pet hospitals, I don’t see any connection.

  32. The Great Pumpkin says:

    Total Number of Millionaires, by Country:

    1. United States: 24.5 million
    2. China: 6.2 million
    3. Japan: 3.4 million
    4. United Kingdom: 2.8 million
    5. France: 2.8 million
    6. Germany: 2.7 million
    7. Canada: 2.3 million
    8. Australia: 2.2 million
    9. Italy: 1.4 million
    10. South Korea: 1.3 million

    Currently, 10% of US adults are millionaires.

    New York City has more millionaires than any city in the world, at 340,000.

    Out of the top 10, the US has the highest concentration of wealth held by the top 1%, at 23%.

  33. The Great Pumpkin says:

    You have a 1 in 10 shot of becoming a millionaire in America, and people still crying. If you live in NYC metro, odds are even higher. Why would you ever leave this location?

  34. The Great Pumpkin says:

    Focusing on this type of strategy ever get you life changing money like Tesla, Apple, or Amazon past 20 years? People like you bashed Tesla and the tech companies that would have you sitting nicely in retirement now. Hell, you bashed the entire digital fintech (bitcoin etc) that could have changed your life with very little capital risked. I understand this type of investment is not for you, but there is no reason to bash the people that do as idiots.

    chicagofinance says:
    May 7, 2023 at 2:50 pm
    Go shove this up KW fucking ass you stupid gourd…..,%20MBA,%20CPA.png

  35. The Great Pumpkin says:

    America was built by people taking risks. No reason to bash the people that have the balls to add risk to some of their investments. If you do, you are bashing the very essence that made America great…big risks in capitalism.

  36. The Great Pumpkin says:

    Nothing wrong with losing, key is to never give up and keep learning. Eventually, you will hit.

  37. Phoenix says:

    The connection is money. There is no other connection necessary.

  38. 3b says:

    Phoenix: Understood, just an observation.

  39. The Great Pumpkin says:

    Republicans are red, Democrats are blue, and neither gives a f’k about you.

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