New York magazine has a good, long-form article about the trend toward using New York City residential real estate as a place to park — and sometimes clean — capital. I can’t help but think this is a bubble, in which the investment trend, itself, is beginning to drive the market more than the actual parameters of real estate supply and demand. But the trend is strong, and shows few signs of burning out in the near future. This statistic blew me away:
And so New Yorkers … compete for scarce inventory with investors who may seldom even turn on a light switch. 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.
Incredible. Overall, it was a very interesting piece, and well worth the time it takes to read.