In July, I published a post titled, Introducing Ghost Skyscrapers – NYC Real Estate Goes Full Retard, in which I highlighted many of the current absurdities characteristic of Manhattan real estate. Of all the points made, the most striking statistic from the piece is the fact that:
“The Census Bureau estimates that 30 percent of all apartments in the quadrant from 49th to 70th Streets between Fifth and Park are vacant at least ten months a year.”
There is absolutely nothing healthy about this reality. As someone who grew up less than a mile from that quadrant, I can tell you this is very negative for NYC’s long-term vibrancy. Sure, while the boom is happening and global oligarchs are parking some of their savings in newly built glass towers, you’ll get jobs, construction and sales; but when the boom stops, and it always does, all you’ll be left will are empty multi-million dollar boxes that no one can afford. When such a high percentage of properties are built solely to serve as bank accounts, and not a space to live in, you’ve got a severe case of malinvestment on your hands.
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