We all know that the real estate market is crazy right now. Most areas of the country are having issues with property values and appraisals coming in at the right price. The New York market, however, is just crazy.
I’ve been noticing that a lot of things in my neighborhood, Park Slope, Brooklyn, are closing…and rapidly. Stores and restaurants that have been around for many years are reluctantly shutting their doors due to the high increases in rent and owner’s not renewing leases. Not to mention, the recession that the country is currently in, that nobody wants to admit to. People can’t afford to go out to eat as often, let alone shop at novelty stores.
Case and point: Nancy Nancy, a great little novelty store on booming 5th Avenue in Park Slope, has been around for more than 10 years. I walked by it recently and discovered a disheartening sign. They are closing! Apparently, the landlord did not renew her lease because he is selling the building and is also doubling the rent. Commercial rents in the Slope are 50 – 100% higher than just 5 years ago. Wait…didn’t I just say this was a declining market – what gives? Other recent casualties include: Cocotte (a small French bistro on 5th Avenue), Hollywood Video, Biscuit BBQ and the list goes on…
My question is: in this economy and market, who is buying or leasing these buildings/spaces? Who are the people that can afford to live in my hood nowadays and why can’t I?
The hubby and I are currently looking to buy something in Jersey City, NJ. Reason being, we cannot afford to buy in New York at all right now. We’ve lived in the same apartment on Carroll Street in the Slope for over 5 years now, yet we are getting priced out of our own neighborhood.
In my general area, there are multiple new buildings going up. The condos are for sale, but it will cost you. Studios at places nearby like NoVo (who tout themselves as “The New Park Slope”) on 4th Avenue or The Argyle (they call Park Slope a “distinctive residential enclave”) go for about $450k with little square footage. Even if we could afford a mortgage like that, the taxes (probably around $8k a year) and monthly maintenance fees ($700 per month depending upon the building) are astronomically high and drive a $450k mortgage through the roof. On my block alone, there are 5 constructions sites. Five!!! In a one block radius!
I want to know who the people are that are buying these overly inflated condos/apartments! The hubby and I have a pretty good double income going on…why can’t we afford to buy these places and stay in the neighborhood that is home to us and what is this “new Park Slope” that these developers are inventing? I guess people like us are forced to continue renting and giving our landlords thousands of dollars per year (I’ve estimated we’ve given ours over $100k) and having nothing to show for it or to move across the Hudson River, but are we the new people there, that are taking over someone else’s hood?
