NYC’s housing market also suffers from it being a globally attractive city. You have rich people who park money in real estate in global capitals like NYC, London, Dubai, and Singapore. They buy for prestige and political security. After all, it’s highly unlikely that all of the cities have a revolution at the same time.
In addition to the global elite, NYC has also been one of the preeminent centers of real estate based money laundering. These people really don’t care about ROI because they’re trying to cleanse money, not make more of it.
Both of these groups couldn’t care less about living in their properties and, typically, don’t bother to rent them out. Instead, they push up the sales prices for the market, while creating fake housing supply.
In addition to the global elite, NYC has also been one of the preeminent centers of real estate based money laundering. These people really don’t care about ROI because they’re trying to cleanse money, not make more of it.
Both of these groups couldn’t care less about living in their properties and, typically, don’t bother to rent them out. Instead, they push up the sales prices for the market, while creating fake housing supply.